Over the years, credit card processors have evolved many times. Today, credit and debit cards have EMV chips and other technology, but should your business try to keep you with the Jones’ by upgrading your card reader?
Outdated Payment Processing
Outdated payment processing puts your business at risk for fraud liability. In addition to fraud, you could lose business if you don’t make certain changes as technology evolves. Customers expect the latest technology when they shop. Swiping a debit or credit card is becoming a trend of the past and so are EMV chip readers. The technology we use today gives customers the opportunity to pay for items using their smartphones, such as Apple Pay and Android Pay. In this situation, yes, you should consider upgrading your POS system. Just to be clear, that’s a point of sale system.
Business Finances
If your business is struggling to make ends meet at the moment or you don’t have the money to invest in a new card terminal, upgrading to the most recent card processor may not be in your best interest at this time. The more technology a card reader has, the more expensive it will be. On average, a new EMV chip card terminal is $200 or more. Depending on the size of your business, you may need more than one card reading device. If your business can’t afford this expense right now, it’s to save the money to purchase the card readers later instead of leasing them. A $200 chip card reader will be over $1000 once you finish paying it off.
Meeting or Exceeding Your Customer’s Needs and Expectations
The saying “the customer is always right” may be a stretch, but when you meet or exceed your customer’s needs and expectations, you make your customers happy, and happy customers spend money. Banks around the U.S. are reissuing debit and credit cards to their customers that have the EMV chip to enhance their card’s security features. From this aspect, yes, you should upgrade your POS system.
Making Your Business Better
Would upgrading your card reading device improve your business? If not, it’s okay. Sometimes upgrading as soon as the technology is available is not the best time. If your business is not substantially declining in sales and your business is maintaining, you may not need to upgrade your card terminal yet.
Giving Your Business a Boost
If your business could use a boost over the competition, upgrading your card reading device could be beneficial, especially if the competition has not made any upgrades. An upgraded POS system in this situation can boost your sales and encourage word-of-mouth advertising for your business.
Sometimes more is not better. You have to decide what’s best for your business. Making a drastic switch between technologies without thinking it through can hurt your business. When the time is right, go for it!
