When it comes to choosing discount credit card machines, merchants with high sales volume may want to consider installing wireless terminals with Internet Protocol (IP) capability. IP terminals are like mini-computers; they have they own “addresses,” or distinctive identifying code that can be transmitted over the Internet. This capacity to communicate over the Internet gives this type of credit card terminal several advantages over terminals that must dial their connections over standard telephone lines.
With an IP terminal, a merchant can send credit card transactions over high-speed Internet connections such as a digital subscriber line (DSL), cable modem or a T1 line, which is actually a collection of 24 separate channels that transmits data at 1.5 million bits per second through the telephone network. A discount credit card machine with this capability is ideal for merchants who have upgrade their telephone system from analog phone lines to VOIP (Voice Over Internet Protocol) digital telephones. Faster transaction speeds means lower overhead costs, because it doesn’t take as long to send credit card data to the service provider and get approval. Credit card companies also charge lower processing fees for IP transactions. How much a merchant could lower processing fees with an IP terminal will depend on the credit card service provider.
IP terminals have one distinct disadvantage; they’re more expensive to purchase and install than dial-up terminals. The deciding factor usually is sales volume. Merchants such as a convenience store with a large number of daily sales would definitely benefit from an IP terminal’s faster transaction speed and lower overhead.