Harbortouch wiki

I've not had the chance to test out their POS, but there's a lot about Harbortouch that would make nervous if I were looking for a new system.In a nutshell, the Harbortouch deal is this: you get a free POS system, hardware and software, if you sign up with them as your payment processor. Sounds good, until you start digging. I've got an internal BS detector hardwired to specific follicles of hair on the back of my neck, and these are the things caused those little hairs to stand straight up:

If it sounds too good to be true, it probably is. First, nothing is ever free. Harbortouch isn't going to be offering these things at no cost if they weren't recouping those losses elsewhere. This in itself isn't bad. Businesses deserve to make a profit. But consider that there's another POS provider, Koupah, that's offering a similar setup, and they are quite upfront about what it will cost you: 3 cents per transaction, regardless of tender, and then a flat rate 2.69% for credit card payments. Simple, straightforward, and predictable. Harbortouch makes no claims as to what they will charge you. So I did a little research.Harbortouch has higher than average processing fees. This page gives a break down of Harbortouch's fees and how they compare with other processors. The retail rate and per transaction fees are higher than average. This doesn't include any other fees—administrative, setup, monthly access—which you will be charged. We're talking about tenths of percentage points here, but over time that adds up. How much time?
Harbortouch locks you into a 5 year commitment, 2 years longer than the typical merchant account agreement. So, let's work the numbers, and we'll keep them low and simple. And we'll also assume that your rates aren't going to be monkeyed with, as Merchant Service providers often do. Let's say you're doing $10, 000 in credit card transactions a month. Harbortouch's rate is six-tenths of a percentage point higher than the national average (.006). [EDIT: I should make clear that the figures I'm using are all averages; your actual rates with Harbortouch will vary based on your particular business] Over 5 years, that's $3, 600. [EDIT: As has been pointed out, my math was off by a decimal place here. I apologize for that—the true cost is $360 for this differenceThat doesn't count the per transaction fee, which is 2 cents over the average, or any of the other fees that will show up. [EDIT: It also turns out that there's a $69 a month service fee tied to the POS, so with the $360 above, the cost of the free system is $4500] So how much are you saving on that free POS system? In this article from ZDNet, Harbortouch CEO Jared Isaacman is quoted as estimating a cost of entry anywhere from $20, 000 to $30, 000. In the sense that Harbortouch is offering a legacy (read locally installed) POS that figure might not be far from the truth. But:
$20 to $30K is no longer a realistic expectation of cost for a modern POS. The world has gone mobile, and today's best POS systems are in the cloud. Software as a Service is the new reality, and for good reason...