Credit Card Processing Terminal Monopoly A Lock

While there is much said in the United States about anti-trust regulations in just

about every business field, it doesnt appear that credit card processing terminal sales fall under the same umbrella. Verifone, the major supplier of credit card terminals acquired Hypercom, the last of its realistic competitors a few months ago. This gives them an essential lock on the sale of terminals, nation-wide.

Questions about the reliability of Verifones terminals began turning up about 5-6 years ago, and, strangely enough, that was about the same time that Verifone began aggressively buying up competitors. With the purchase of Hypercom, no large competitors exist.

How Does this Affect Businesses?

With no competition, Verifone will be in a position to set prices and all but force businesses to play ball only with them. There are a few small companies that reportedly produce better terminals, which are both cheaper and more reliable, but often, merchant account providers insist upon their customers using a specific terminal. With no choices, businesses will have to pay whatever Verifone dictates a dangerous precedent.

Monopoly Isnt World Wide

On the positive side, when evaluated on the global scale, Verifone has a lot of competition. Ingenico is one of the largest credit card processing terminal manufacturers in the world, although they are a small player in the United States. It can be expected that even if Verifone manages to hold its monopoly (a questionable assumption), global companies will seek to enter the market, offering business owners more options.

What to Do?

If your merchant account provider offers a choice of credit card terminals, take some time to read reviews and evaluations. It is never wise to support a monopoly, even if the government fails to act against them. As long as the customer service offered is identical, business owners are best off selecting machines that are better rated and less expensive, regardless of incentives.

It is also important to keep up to date with all news relating to merchant account and credit card processing services. Considering how much an average company will spend on fees and equipment, ensuring a fair market is just good business sense.

by: Michael Rupkalvis

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