Frequently Questions and Answers

The privatization of the POS (point-of-sale) industry provides an opportunity for merchants to acquire better options for payment terms by their customers. The private terminal allows the merchant the option to set a modest “surcharge” or “convenience fee”, paid by the cardholders to make payments with their Interac debit cards. Merchants are not required to surcharge; it is a choice each business owner makes when analysing his options

All users are notified of the user fee at the pin pad and have the option to exit from the transaction and make payment by other means. Our test sites have indicated no change in sales with a private terminal using a surcharge. Common questions asked by merchants appear below.

1. What forms of cards are accepted?
Presently, all debit cards provided by any financial institution in Canada processing through the Interac Network will work on these terminals.

2. How does the settlement money get back to me?
Settlement funds are deposited automatically to the merchant's bank account on a daily basis, Monday though Friday. Weekend transactions will be shown as deposits on the following Monday. As each site completes its batch total on a daily basis, that amount will match the bank deposit.

3. How does the surcharge money get to me?
Merchants have asked that the surcharge money be held until month end, at which time all processing costs will be deducted from the accumulated amount and the net surcharge revenue for the site will be deposited directly to the bank account.

4. Does the machine eat or take cards?
No. The terminals receive cards through a swipe process and the card never leaves the hand of the operator.

5. What warranty is on the machine?
The standard one year warranty is in place with a five year optional warranty. These terminals do not employ parts replacement. If the terminal is not operating satisfactorily then the entire terminal is replaced.

6. Why would this benefit me?
These terminals allow the site to set a user fee, thus generating revenue in receiving payments. Previously, merchants were required to pay the costs of customers making payments with their debit cards. Because these terminals have the latest software and technology in place, they tend to process transactions more quickly than many older models provided by the banks and financial institutions. Merchants have a variety of options to own, lease, rent, or have the terminals placed at their sites. P.O.S. West Ltd. will customize the terminal arrangements for each site.

7. Who sets the fees?
Each site has the opportunity to determine the appropriate fee. P.O.S. West will assist in identifying the industry standards, but variations will occur depending on volume, geographical location, availability of other payment methods, and the convenience.

8. What do I need to do to get a terminal?
For each terminal the site requires an electrical outlet, a standard telephone connection (it may be shared on a splitter), and identification of the merchants settlement account where all funds are deposited electronically (voided cheque).