Technology is a wonderful thing. It makes our lives better in ways that were once unimaginable. Just when you thought there are no new ideas, someone, somewhere, comes up with something that makes life a little more convenient. Such is the case with vending machines.
As a vending management company, we're often asked by our customers if they can get a credit card reader for their soda machine. With less and less people carrying cash in their pockets, it's the logical thing to do.
A lot of times, we're able to provide equipment with a credit card reader. But sometimes it's not so easy.
The Business Of Credit Card Readers
There are a lot of fees associated with installing a credit card device on a vending machine due to the way the information is processed. This article provides detailed insight into how the credit card transaction works on vending machines and the costs associated with it. Here's a brief summary of that process:
Step 1: Once a card is swiped, the credit card reader encrypts the data on the card.
Step 2: The information is then transmitted via a cellular modem, either by WAN or LAN connection.
Step 3: The information is sent to a payment gateway, where it is captured and sent to a credit card processor.
Step 4: The data is processed and sent back to the credit card reader for either approval or denial.
One simple swipe of a credit card involves a lot of information processing and management. Vending operators pay for this service by monthly AND transaction fees, which vary among providers. Some are a fixed percentage of the sale, while others fluctuate based on the selling price of an item. Suppliers need to be selective on which machines they install credit card readers.
How Do You Get A Vending Machine With A Credit Card Reader?
Carefully consider the location of where you want the machine installed.
The deciding factor always boils down to how much revenue the machine produces. Vending operators need assurance that the sales of the soda machine will justify paying the fees involved with using a credit card reader.
In order for a vending machine to sell a lot of product, it needs to be highly visible to as many people as possible. If it's tucked away in the back corner of your location or is only accessible to a small number of people, chances are the sales will be low. Even with a credit card reader.
So, it's best to have your vending machine installed in a location where the most amount of people will see--and use--the machine. This will help drive the sales needed for vending companies to place vending machines with credit card readers.