How Much Does A Card Machine Cost? Prices & Transaction Fees

Among the first decisions, a company must undertake is whether or not to purchase a card. machine. Purchasing outright, especially for flexible, top-of-the-line equipment, requires enormous upfront expenditure. Some large suppliers only provide rental services for their card machines; therefore, buying one offers a distinct advantage for enterprises. 

It might be challenging to decipher processing charges and swipe machine price, especially for newer merchants in the industry. Accepting credit cards and all other means of payment is a requirement for many businesses. Since it is a must for any firm, calculating the expenses may be tricky. When negotiating with suppliers, there are a few things you should keep in mind to acquire the best card machine prices. Here’s how to figure out which reader and service provider is ideal for you.

Why do you need a POS machine?

Rather than cash deposits, companies may now regularly balance their card transactions. The most important benefit is the inherent security that card swipe devices give. Card machines’ implicit checks, which include verifying the customer’s bank account and cash availability, make card transactions go more quickly.

As a result, card swipes have attracted a more extensive client base. Customers may pay online, by mail, or over the phone, which is beneficial to the firm. Because of the versatility that card machines provide, this dramatically expands the consumer base. Card payments clear significantly more quickly than check payments, allowing for a speedier cash inflow.

Card swiping machines’ costs and fees

It’s no surprise that most individuals are perplexed by transactional or card processing costs. It is critical to take the time to grasp the nuances and obtain a decent bargain. Card processors determine rates in various ways, and there are many different types of cardholders with their own costs and swiping machine charges.

Swipe or credit card machines range in price from Rs. 2,500 to Rs. 10,000, depending on the functionality offered by the firm.

Merchants should anticipate a magnetic strip, display screen, keypad, and chip card capability at the very least. If all you require is basic service, then an updated machine with customer-friendly features is all you need.

Transactional charges

A transaction fee, often known as a processing rate, is charged every time a merchant taps, dips, or swipes a card. They may be charged for additional transaction costs, such as batch or interchange fees. However, at a point of sale counter, the price is about 1.3%–3.5% for using swipe machines to take card payments. The exact amount is determined by the payment network, such as Visa, Mastercard, or American Express, followed by the credit card type and the business’s merchant category code.

Types of charges

Interchange and assessment fees are non-negotiable and are sometimes referred to as base costs or the discount rate. The payment network charges these fees on every transaction utilizing one of their cards. The following are discussed below:

Interchange rates

The interchange charge is paid to the bank that issued the credit card. If you have a credit card that uses the Visa payment network, you will be charged an interchange fee on your purchases. The cost, however, ranges from 1.5% to 33.3%.

Fees for assessments

The assessment charge is paid to the payment network. Visa would get the assessment charge on every transaction where you used your Visa card in the case above.

Payment processing fees

This is paid to the business that takes credit card payments and transmits them to the payment network through a physical card reader or an internet payment gateway. Costs for this service may include the following, depending on the payment processing company:

  1. A charge per transaction
  2. A monthly service fee is charged.
  3. The cost of the transaction processing equipment.

How to choose the most effective machine?

Various factors influence interchange fees within the ranges given above for each payment network. Merchants nowadays rely heavily on all-in-one solution machines, which provide a wide range of characteristics suited for various businesses. Some of the most acclaimed features are debit card EMI, buy now pay later (BNPL), UPI, and other types of facilities.


When you consider the price of related fees, having a merchant account, and other additional fees bundled in with a contract, buying a credit card terminal is virtually never black and white. However, by maintaining a close eye on your needs and partnering with a reputable payment processor, you can ensure that you’re making the most financially sound selection for your company.

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