Credit Card Processing: Terminal vs. POS

Some merchants find themselves operating with both a Point of Sale System (POS) and a separate credit card terminal.  This happens when the merchant purchases or leases a credit card terminal before they purchase a POS system. This sort of configuration is sometimes planned.  For example, the merchant can't afford a POS initially but plans on buying one later. Most often however, this is almost always a costly unplanned scenario (CUS). This article addresses the benefits of "integated processing" (i.e. processing credit cards with the POS) and the ill affects of using two systems.  To avoid this sort of CUS in the first place, read the article "What the heck is a POS System?" posted on this blog.

Every creditable POS system has an integrated credit card processing option so it is hard to rationalize why a merchant would want to operate two systems. Here's a few reasons why:  

• Credit card processing rates and fees are typically lower with an integrated system. 
• If for some reason the rates are in fact lower with your credit card terminal provider, you probably will have to incur additional software gateway fees to integrate your incumbant processor into the POS.
• Credit card terminals often require long term leases (up to 4 years) with expensive premature cancellation fees.
• You have to give the customer two receipts: one from the terminal, one from the POS.
• Customer check out times are longer because you have two systems, two receipts. 
• Processing voids and returns takes longer because you have two systems.
• You have to balance two systems.
• Most integrated systems are internet based (2 to 3 second processing) vs. dial up for credit card terminals (5 to 15 seconds).
• A disintegrated system can look like crap. 
• It is easier for your employees to rip you off (we'll have more on this in another post).

Below is a promotional piece from one of our business partners, Mercury Payment Systems, outlining different though similiar benefits of using integrated processing.

Save time and money with Mercury Payment Systems’ smart payment processing


Mercury Payment Systems provides merchants with integrated transaction processing that simplifies the payment process and enhances customer satisfaction. For example, Mercury is directly integrated with Blue Sky POS creating a unique advantage for their customers. With Mercury, merchants enjoy an affordable solution for hassle-free, reliable transaction processing.

Why use integrated processing?

There is no need to purchase additional software. Merchants save money by having direct access to payment processing without using a third party payment processor and paying additional gateway fees. Also, there is no additional hardware to purchase and support such as stand-beside credit card terminals.

Merchants using a point-of-sale (POS) system that is separate from the credit card terminal understand the headaches and wasted time spent reconciling credit card sales at the end of each day. Without an integrated system, a sale must be entered in the POS and swiped through the terminal. This creates two separate sales slips and two different daily sales totals. Integrated payment processing solves this problem. It generates one sales slip, and eliminates the need for tedious reconciliation.

Additionally, using an integrated system reduces the customer’s check out time, increasing customer satisfaction. The purchase only has to be entered in one location. And, with a high-speed internet connection, a credit/debit card authorization only takes 2-3 seconds.

Why use Mercury?

With the Mercury, payment processing is fast and reliable. Mercury’s free, live support is available 24/7. Mercury technical support representatives have in-depth knowledge of integrated processing. This expertise makes troubleshooting and resolution efficient. Merchants avoid the aggravation of trying to get help from a payment processor that knows nothing about their system. Mercury’s free gift card processing is a great advantage for merchants with a gift card program. MercuryGift™ transactions are free. There are no monthly fees or maintenance costs. And, with 100 free cards to start, merchants can try the program with no commitment. Merchants can choose from a variety of packages and card designs to suit their needs. Merchants with multiple locations enjoy the ease of cross-store gift transactions with ACH funds transfers.

Mercury offers real-time transaction reporting and daily deposit details through the free web portal. Transaction reporting makes it simple to see if a card was run twice, if a refund was issued correctly, and many other daily transaction inquiries.

With Mercury, merchants never have to worry about authorization outages that can bring sales to a standstill. If the authorization network experiences an outage, Mercury stands-in and takes responsibility for all transactions within the floor limit so merchants continue processing without interruption.