Is Buying A Used POS Terminal Worth It?

No one really bats an eye at buying a used car and for most people this is their very first car. There is nothing wrong with buying a used car since they can save a person thousands of dollars and plenty of other things work well used. Did you know that used POS terminals can be purchased as well? Is purchasing a used POS terminal a good idea?

Places like eBay and Craigslist are full of used POS terminals. The price of one is certainly cheaper than buying a new one and for many that is an attractive reason to buy one of these. That is not a good idea, and we’re not saying that just to get you to buy a new terminal from JLE. There are some reasons why.

Outdated

There is a reason that most POS terminals are for sale and that is because their previous owner got a new one. These terminals use an operating system just like your computer does and just like with your computer security issues are found and need to be patched. You of course know that the terminal connects to the Internet which means that an attacker has a constant avenue of attack to exploit that vulnerability and just think about the information that goes through that terminal.

Is It Compatible?

A used POS terminal may not even work. Just like with your computer your POS terminal has software installed on it. It is possible that the software installed on the terminal may not work with your business. Different businesses have different needs which mean different software is needed and that may not work for you. Also even if the software does work a transfer of the license or purchase of the license will be necessary so that you can use it legally. You will then need to reprogram the software and train your employees how to use it, taking up time and valuable employee resources.

At the same time using outdated software may not be PCI compliant. All software has a shelf life and there comes a time when new updates are not provided. That could leave some very big holes in your terminals software exposing your business and your customer’s information to a cyber thief. At the same time the EMV liability shift was only a few years ago so it is quite possible that a used terminal may not be EMV compliant, meaning you could be on the hook should something bad happen.

Breaking Down

One of the major risks that comes with buying a used vehicle is that it may be more prone to breaking down. Its components are older meaning more wear and tear. The same can be said for a used POS terminal. 

You potentially use a POS terminal for hours every single day. Think about how many cards you swipe or dip on a daily basis. While it does not take the pounding like a car does, it does experience wear and tear. With a used POS terminal it is more likely that something will break at some point and there is a good chance that its warranty has expired. It may also be difficult to find replacements parts for the terminal and the older it is the harder it will be. 

It May Not Work With Your Processor

In the end it is possible that the terminal may not be compatible with your payment processor. The last thing that you want to do is to spend time and money getting that POS terminal ready only to find out that it won’t work with your processor. You will be stuck at that point and probably ready to get a hammer out and smash the terminal out of frustration.

Buying a used POS terminal can work for some merchants but in general buying a new one is the best (and only) route that merchants should take. They have the most up to date software, are less likely to break, will be compliant and since you will be buying it from your payment processor compatibility with them will not be an issue. 

A used POS terminal may seem like a steal but in the end it may wind up costing you more. When it comes to your customer’s payment information skimping is not a good idea and it can put you out of business quickly. Take the safe route and buy a new POS terminal. The cost may not be as bad as you think it is and JLE Business Consultants can work with you to find the right one that works for you.