Hidden fees will cost them a lot more in business losses than the terminal replacement - merchants are not stupid or disinterested. And when I mention decent providers, there are no hidden fees there.gamechanger wrote: ↑Aug 14th, 2014 10:46 amSo, if they are not charging for shipping, and not charging for the replacement of a terminal that was purchased outright (and the sales rep made most of the profit), how are they paying for these hard costs? They are either losing money, or have hidden fees that are covering these costs...
As for "no new technology", take a look at the Ingenico line. 10 years ago, their countertop terminal was the elite 510 with the en-crypt 150 pin pad. Obsolete. Then, they moved to the i5300. Obsolete. Once IP became available, the i5310. Obsolete. From there, the i5100 dual mode. No longer in production, and servicing of these units is being phased out. Now, the latest and greatest is the Ingenico Telium line. New features / technology include an integrated contactless solution (tap and go) Awesome terminals...for right now. Give it a few years, and they too will be obsolete. Same can be said about wireless, both Bluetooth and GPRS. Once again, how is a private processing company (ISO / MSP) supposed to pay for this new hardware and upgrade the client for free?
The Ingenico line? Actually, the Ingenico 5100 was in use for many years, and it still is. Sometimes with the 3500 pinpad. Providers do not offer customer support for them anymore, but will only replace them if they become defective - which they are supposed to do anyway. Same for some providers using the Hypercom line.
For the obsolete thing: you may not be aware, but most terminals in use sold over the last 10 years came with a slot for chip reading. So no, it wasn't the terminal. Yes, the internet prompted an ADDITIONAL feature, but it was not indispensible, in fact a large majority of terminals out there are still using dial up. So no issue there. Contactless? Not a big deal, it is not a requirement either, and very few merchants actually use it.
Wireless (that and GPRS are the same) and bluetooth are not a requirement either, in fact again, the large majority of merchants do not use it.
So the only VITAL change in a terminal was - finally - the mandatory chip reader. But still, there are merchants today that do not have that capability yet and they are quite happy about it. Go to some convenience stores or dry cleaners and you will see. The old terminals work just fine. And btw, I've seen Moneris terminals that are about 15 years old or so, they still work.
Bottom line, all those goodies you described are not ESSENTIAL for a very, very large majority of merchants. Nothing obsolete there.
As for the terminal costs, providers and banks make a lot more money from your processing than they do from the terminal. Think about averages, not the merchants processing a couple of grand a month.