Businesses thrive on efficiency, and when the prospect of free hardware for a Point of Sale system arises, it’s understandably tempting. Square, Clover, and Harbor Touch have made this offer, promising to equip businesses with essential tools like tablets, cash drawers, and printers without the initial cost. But does ‘free’ come without a catch?
The enticing proposition of saving potentially thousands upfront for crucial POS components can be alluring. However, the price you pay for ‘free’ hardware might extend far beyond the initial zero-dollar investment. The catch? The cost is surreptitiously camouflaged within the processing fees, which could range between 6 to 7%.
As the President of Electronic Money Company for over 20 years, I’ve seen the pitfalls hidden in these seemingly advantageous offers. While the hardware might not cost you anything upfront, the price reveals itself in the inflated processing fees. What seems like a cost-saving opportunity at the onset ultimately leads to exorbitant charges, essentially paying for the ‘free’ hardware over and over again through perpetually higher transaction fees.
Comparatively, a standard processing fee could range around 3% or even lower. By opting for the ‘free’ hardware route, you’re potentially doubling or more than doubling your processing costs, to paying twice for the same service over time. 7 % for processing rates with free hardware is commonplace.
The proprietary nature of this ‘free’ hardware becomes a tether to the processor. If you wish to switch processors, the hardware becomes obsolete as no other entity can access it. You’re bound to high fees and the specific provider until you invest in an entirely new system, requiring an upfront cost.
My recommendation stands clear: consider buying your hardware upfront. Whether through credit card payments or a lease, this upfront investment might initially seem daunting but saves you from the shackles of perpetual high processing fees. At Electronic Money Company, we believe in transparency. Our goal is to help businesses navigate these decisions without falling into hidden cost traps.
If you’re considering your options, feel free to give us a call at 505-296-2847. We can evaluate the fees and compare them with alternative solutions, such as a lease, providing you with a comprehensive understanding of the true costs involved. We pride ourselves on honesty upfront, enabling merchants to make informed decisions that benefit them in the long run.
In the realm of business, ‘free’ doesn’t always equate to a cost-saving advantage. Instead, it might conceal a web of expenses that could hinder your growth and success. Invest wisely, and let’s steer clear of the hidden costs that tag along with seemingly attractive offers.
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