What is a payment terminal?

At a glance

How it works

Terminals come in a few shapes. Some sit on the counter. Some are wireless handhelds you carry to the table. Some are small readers that pair with a POS. A terminal turns a card into a request that a bank can answer. The fees on a sale come from the card, the networks and your processor.

1. The customer taps, inserts or swipes the card, and enters a PIN if asked.
2. The terminal sends the card data to your processor.
3. The processor passes it to the card network and the bank. They approve or decline.
4. The terminal shows the result and prints or sends the receipt.

A Canadian example

A florist in Laval rents a terminal for $34.95 a month. Moneris and Chase publish that price, and our processors guide lists it. Over three years that is $1,258.20, before any card fees. Buying a terminal costs more on day one and nothing a month after. So compare the total over the years you will keep it. An example only, not a quote.

What is different in Canada and Québec

• Interac debit is a Canadian debit network. Check that your terminal takes it with Visa and Mastercard. Ask which tap and wallet payments it accepts.
• A card terminal alone does not make a Québec restaurant compliant. The POS that produces the bill must be certified by Revenu Québec.
• The Québec tip rule applies to the terminal. Suggested tips must be calculated on the price before GST and QST. The merchant is responsible even if an outside company programs the terminal.
• Clover devices in Canada cannot take card payments offline. Clover lists LTE on the Flex, Mini and Stations. A cellular link can back up your Wi-Fi.
• Clover devices in Canada work only with Fiserv processing. Terminals from other brands work with the processor that supports them.

What it costs and where it shows on your statement

The device itself costs a price, a monthly rental or a lease payment. Rental or lease charges show on your statement only if your processor bills them. A lease can be a separate contract with another company. It may not end when your processing agreement does. Ask who owns the device. Ask how long the lease runs and what it costs to leave. Card fees are another matter. See the card processing fees guide.

Where CleverPays fits in this step

You choose the terminal, and your processor must support the terminal on your account. The card networks and your customer's bank decide whether a card is approved. CleverPays does not approve or decline cards and does not set network rules. CleverPays is operated by Groupe Heo Inc., an Agent of Fiserv Canada Ltd. The Clover terminals we sell run on Fiserv processing.

We can recommend and set up Clover and other terminals or gateways. We will walk you through a recent statement. We can show any rental or lease line and explain the fee. We answer questions in English and French.

Common mistakes

• Signing a lease without asking who owns the device and what happens when processing ends.
• Buying a Clover device from eBay or another outside seller. Clover says such devices cannot be used with other payment processors.
• Assuming a terminal works with any processor. Each one is tied to the processors that support it.

Related terms

• POS system: the software that builds the sale and sends the amount.
• Clover: Fiserv's POS and terminal platform.
• Contactless payments: tapping a card or phone on the terminal.
• PIN pad: a small device that takes the PIN and sits beside a POS.
• Equipment leasing: paying for a terminal over a fixed term.
• Payment processor: the company the terminal sends payments to.

Common questions