What to Do if Your POS System is being Phased Out
More and more frequently especially with the new regulations related to chip cards, credit card processing companies are informing their customers that their equipment is outdated and needs to be replaced. Which may lead you to wonder, is this a scam or is it truly legitimate and why all of the sudden is this an issue?
With the recent push for security and the rise in security breaches, credit card processors are trying to minimize their exposure as well as yours. In addition, chip credit cards are becoming more prevalent in the marketplace and Visa/MasterCard have created some mandates to move you to the acceptance of chip cards. In order to process these types of cards terminals with older encryption types are being eliminated. If you haven’t obtained a new terminal in the last year or so, then you’re probably out of PCI compliance. If you’re interested in hearing more about the new mandates relative to chip card processing, feel free to call us and we will gladly explain them with no gimmicks or commitments to change your processing. Because of the new mandates and new security, we are now seeing more terminals models being eliminated from the approved or certified list than ever before. Which means you might be contacted by your existing processor to replace your current model. If you are contacted by your existing provider, then chances are it is legitimate and it’s time to replace your equipment. However, if you’re getting a call from a telemarketer who is stating that it’s a mandate that you get new equipment today or someone starting their sales pitch about your equipment then chances are it’s a scam. Unfortunately, as with any industry where there’s a window for scam, scammers are always lurking and with the new chip mandates, some companies are using this opportunity to scam on business owners. With the new push for eliminating the older equipment some sales representatives are using this to line their pockets by using scare tactics to get you to move and buy new equipment even if it doesn’t need to be replaced. How do you protect yourself from knowing it’s legitimate or a scam? Unfortunately, there is not a full proof way to protect yourself but just as I always say, if you’re working with someone you know, like, and trust then you’re probably in good hands.
On a side note, watch out for leases on new equipment. We typically do not recommend getting into a lease as you will pay a significant amount more for that terminal than just an outright purchase. For example, a typical credit card terminal can be obtained for $300 to $400 our cost. Obviously, this doesn’t include shipping, tax, or any markup but it does provide you with a baseline. We’ve seen leases anywhere from $24.99 to $89.99 and these are typically for 48 months. That’s $1,199.52 for a terminal that only costs around $300 to $400.Let’s Talk
For additional questions or for more information on this topic, feel free to reach out to us at 602-635-6494 or visit us on the web at www.dfgaz.com.