Expert: John R. Sabol - 12/28/2003

Question
Hi Mr. Sabol,
  I will be starting an acupuncture practice this Spring and would like to know what would be the most appropriate brand, type, price, used or new model, and anything else you might relate that might help in making the right buying decision towards purchasing a credit card machine. Thanks. Mike Eidson, Lac.

Answer
Good morning Mike ! Glad to hear you are taking the plunge into business ownership.

I don't have extensive hands on experience with credit card machines but will be happy to share with you what I do know.

First of all, fees vary greatly. Most of the contracts/agreements stipulate that you are paid at a discounted rate. FOr example, you charge your client 100.00. You client elects to pay you via a credit card. Transaction is approved. CC Vendor pays you 95.00.

In small transaction businesses, rates can be brutal. I have heard of rates @ 6%. This can be dealt with as long as you have priced this transaction cost into your business model and respective fees.

If I were shopping I would be concerned about the following areas:

What are the fees ?

How long until funds are paid to you ?

I hope this helps. I apologize for my limited answer. If you like, I can make a few phone calls to associates with significant experience in this area. Please let me know.