What are the advantages of an IP terminal?

IP terminals have several advantages over standard dial-up terminals, the first being that they communicate over a high-speed internet connection (DSL, Cable modem, T1) rather than an analog phone line. This is perfect for merchants who use a VOIP, or similar phone system, and don’t have any analog phone lines available, or who just don’t want to pay for an extra phone line for their credit card terminal. This adds up to faster transaction speeds and lower overhead costs. Per transaction fees are also lower for IP transactions. How much lower depends on your merchant services provider.

IP terminals are faster and cheaper to operate, but they are much more expensive than standard dial-up terminals. So, you have to evaluate your situation and decide what’s best for you. If you have high credit card sales volume and already have high-speed internet service at your place of business, then an IP terminal will more than pay for itself and would be a good choice. If your credit card sales volume is relatively low and you are using analog phone lines, then it may make more sense to stick with a cheaper dial-up terminal.