What’s Really Included in a “Free” Credit Card Terminal?

While some offers might seem more appealing than others, it’s important to look beyond the sales pitch and understand what you’re signing up for. Hidden fees, contract terms, and unexpected rate increases can quickly turn a “free” terminal into a costly commitment. Before accepting any free terminal offer, take a closer look at the fine print and be aware of what to watch out for.

Here are the top 3 charges to look for when you decide to use a "free credit card terminal":

1. Annual fees: Most merchant services companies charge an annual fee. Many charge multiple annual fees. What you need to watch for is an exorbitant annual maintenance fee for your free credit card terminal. These can run anywhere from $79 all the way up to $199. If the company is going to charge you that much money every year to have their terminal why not just buy it outright?

2. Monthly maintenance fees: This is just another way of getting you, as the merchant, to cover the cost of the credit card terminal over time. You might not pay for the terminal upfront, but if you’re faced with an extra monthly fee on top of your regular merchant account charges, it’s worth questioning whether the terminal is truly free. Over time you will end up paying more than you would have buying it outright. These fees typically range from $10 to $25.

3. Higher credit card processing fees: This is another way of getting you to cover the cost of "free credit card equipment". The company offers you the terminal at no cost, but they bump up your rates. What often happens is you are quoted an attractive rate, such as 1.69 percent, but end up paying much more through higher mid and non-qualified rates. They can be pretty sneaky about how they go about it. Instead of a straightforward fee, the real costs are hidden in the fine print of your processing agreement. 

Your best bet is to choose an interchange plus pricing system because it helps eliminate those extra charges. Some companies will draw you in with a low introductory rate only to raise your fees after six months. By that point, you are usually locked into a contract and unless you want to pay a hefty early termination fee, there is not much you can do to get out of it.

Protect Your Business from Hidden Costs

Understanding the true cost of a credit card terminal is just the first step. It’s equally important to partner with a merchant services provider that values transparency and straightforward pricing. Look for companies that clearly explain all fees and offer simple, easy-to-understand contracts. Don’t hesitate to ask for a full breakdown of charges and make sure all your questions are answered without any pressure. Taking the time to do this upfront can save your business from costly surprises later on.

At Beacon Payments, we prioritize honesty and clarity so you can focus on growing your business with confidence.

Ready to Simplify Your Payment Processing?

Beacon Payments provides affordable credit card terminals with flexible placement options that do not add extra fees to your processing account. If you’re ready to stop overpaying and start accepting payments with confidence, contact us today to learn how we can help your business save money and simplify payment processing.