Gone are the days of taking a mechanical imprint of a cardholder’s credit card, checking a printout out of hundreds of bad cardholders, and then carrying the slips to your local bank for processing and deposit.

Determining how to process your transactions can be confusing. Stand-alone Point Of Sale (POS) terminals, Virtual Terminals, online Internet processing, Electronic Cash Registers (ECR); software programs to software integration for driving custom proprietary systems - Micros, Aloha, Diamond Touch, Protobase -- to name a few. How do you choose amongst so many different offerings? Easily, with UPC by your side, we’ll guide you through the process of determining what’s best for your business and what’s best for you. Below are some of the different methods of processing transactions.

Hardware
POS terminals are small, countertop computers designed to interface with the processing networks to authorize, post, and transmit the transactions electronically. The terminals are programmed with software from the processor to guide the user through conducting a transaction. While all terminals have a display screen, a printer is best for documenting the information transmitted from the processor. There are terminal models that have an integrated printer built in; this is useful for locations where counter space is at a premium. Electricity and access to a phone line is needed for the terminal to process the transactions. Terminals dial a toll-free telephone number and are only on the phone usually between three to eight seconds. A dedicated phone line is not required however; a large number of transactions may justify the convenience. Battery powered and cellular based terminals can process transactions with a greater flexibility. Pinpads are the devices that often resemble a calculator but are used in conjunction with a terminal and printer to process a debit card transaction. Just as you must enter your Personal Identification Number (PIN) on an Automatic Teller Machine (ATM), a debit card transaction requires the cardholder’s PIN. A few terminals do away with the attached, corded pinpad and utilize the terminal’s keypad. Regardless, the processor to assure security of the transaction must encrypt each pinpad.

At UPC, we typically group hardware into one of three categories; Hypercom, VeriFone, and the other manufacturers. Both Hypercom and VeriFone comprise roughly seventy percent of the market share, leaving the remainder for all the others. This is not to say that any terminal not manufactured by either Hypercom or VeriFone is not a worthy terminal. There are many different types of terminals and each manufacturer takes a different approach to designing them. A smaller company may have a terminal whose features are not found anywhere else and that may be the best choice for your business.

Because of these factors, we can’t tell you upfront what terminal is best for you. We offer essentially all of them from all manufacturers. We don’t limit your choice by offering a few to choose from. Our recommendation will be based on; learning about your business, how you wish to conduct business, what our experience has been, and what the future is expected to hold for you. Accessories such as integrated smart card readers, printers, PINpads also are part of the overall plan to provide your business with the tools it needs. Our recommendation will encompass these additional options. One option that may be considered is not a terminal solution but rather a software solution for your business. Ultimately, the decision rests with you; UPC stands with you to make an educated decision.

Realizing that accepting cards may be new to your business and that you’d like some information on terminals, we’ve set aside some space to display our most regarded terminals.

Software
Software programs are computer software programs designed to run on a stand-alone Personal Computer (PC) or network. Software provides the same functionality of POS terminals but offer more information to utilize in your business. Software programs can operate in stand-alone mode or they can be share information from other computer programs. Some accounting packages have these programs built into them and offer seamless accounting practices. Most software programs support a host of popular payment processing peripherals designed to provide more secure transactions and increased customer through-put at the point-of-sale. These peripherals include POS keyboards with magnetic card readers, magnetic card readers, check readers, pinpads, and most standard receipt printers.

Virtual Terminal
Virtual terminals are a component of Internet transaction processors, which allows merchants to manually authorize, process, and manage credit card transactions from any computer with an Internet connection and a web browser. You don't need to have a website to use a virtual terminal. This should not be confused with Internet real-time processing.

Internet
Internet processing is the handling of transactions during the order process of the cardholder while visiting your website. They indicate what products or services they want to purchase and then finalize the order by entering their card information into a checkout screen and the card is authorized. A “shopping cart” is the term used to describe the checkout process on a web site. Most web designers will then have a system of sending you the approved order for your business to fulfill as well as performing back office tasks such as refunds.

Electronic Cash Register
Electronic Cash Registers (ECR) are the POS systems designed to be a composite of a terminal, software, and a cash drawer. Most utilize a touch screen for data entry. Although the systems are driven by credit processing software, most ECR systems are custom solutions built around the business type and it’s unique needs such as restaurants, retail shops, or hotels.

Your Relationship Manager will guide you through this process of determining which solution is best for your business and what’s best for you.

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