Accepting card payments: what to know before choosing a terminal
A plain guide to what you actually pay for, and what a terminal should do for you.
Choosing a payment terminal often feels like comparing apples to oranges. Pricing sheets are dense, contracts are long, and two offers that look similar can cost very differently over a year.
What you are actually paying for
Every card transaction involves several parties, and each takes a share. Understanding who gets what helps you see which parts are negotiable and which are not.
- Interchange fees, set by the card networks and paid to the customer's bank.
- Network fees, collected by Visa or Mastercard.
- The payment provider's margin — the only portion that is genuinely negotiable.
Hardware is only part of the equation
A modern terminal does more than take payment. It handles tips, prints receipts, tracks sales by employee, and connects to your point-of-sale system. The right device depends mostly on how you serve your customers.
Three questions to ask before signing
- How long is the commitment, and what does early cancellation cost?
- Are the advertised rates guaranteed, or can they change after a few months?
- Who answers the phone on a Saturday night if the terminal stops working?
A clear offer should be able to answer all three in one sentence each. If it cannot, it is worth asking for specifics before you commit.