Sintel Systems vs. “Free Point of Sale POS”

Recently we received a call from a potential client from New Jersey and they had the following to say:

“I have decided that it’s time to get a point-of-sale POS system. I checked out your website and found it very user friendly, but I have also seen advertisements for “free point-of-sale systems.” I was referred to you by a current client and who said that pound-for-pound Sintel Systems exceeds any competitor. So give me a comparison between Sintel Systems and the free POS, and let’s see!”

While many of others tend to look at such potential clients negatively, we at Sintel Systems have the following saying, “Customers have the right to ask and we have an obligation to provide honest answers.”

So, one of our POS system experts explained it and did a side by side comparison between Sintel Systems and the supposed Free Point-of-Sale systems. We assumed that many others out there have the same question and we decided to put this side-by-side comparison here.

Before we start, let’s get some definition as provided by Dictionary.com. According to them, the word “free” has many definitions, but assuming that most business owners looking for a point of sale system associate “free point-of-sale” to the cost of the POS system, Dictionary.com defines “free” as an adjective meaning under definition number nine (9) as “costing nothing; provided without charge.” Please see http://dictionary.reference.com/browse/free. So a free point of sale system would be one that would cost nothing and would be provided without charge. And that is probably what you were thinking.

This client who called us from New Jersey was looking for a two-terminal POS system for his Frozen Yogurt shop. So, we further increased the challenge by also comparing highest model POS system with the “Free POS” standard model. We also included our technical support which is free for the first 90 days and is not mandatory and here are the results:

So, the free basic POS systems end up costing almost $11,000 and could cost much much more. How much more? Well, nobody knows. How you ask? A comparison would be not complete without comparing the fine print also and here is some of it:

1. The advertised fee is on approved credit for the highest tier creditor, so the actual monthly fee can be higher.

2. The “Free POS” provider can increase the monthly fee at any time just by giving notice. Now that’s SCARY.

Sintel System's Point-Of-Sale Packages

3. There is a $59 per quarter maintenance fee. That is an extra $1,180 in the five year term.

4. There is an initial minimum 5-year term and if the customer does not notify the provider 60 days before the expiration of any term, then you are obligated to another 48 months. So you can be in for 9 years and that would cost you over $17,000 if they did not decide to increase the fees.

5. The penalty for early termination is immediate payment for the remaining months. So the customer decides that they don’t want the system after two years, they have to pay them $5,500 immediately. That is if the fees have not been increased.

6. The customer never owns the equipment.

7. The customer must maintain insurance of the POS equipment.

8. No service is provided if the customer is in default of payment.

9. The POS provider is actually a bank.

10. The customer must maintain their merchant account with the designated bank only. You don’t have a choice.
Here is a summary of the side-by-side comparison of the fine print:

So how is this free??? We don’t know.

After the comparison, our customer asked a legitimate question. Can Sintel Systems provide financing and how is financing different form Sintel Systems?
1. The customer owns the system at the end of the typical 48-month term. Longer and shorter terms are also available.

2. Sintel Systems does not claim free POS systems.

3. Sintel Systems is honest about the financing option and discloses all fine print.

4. We are a POS company and not a bank or credit company. We are not here to make money from charging our clients high rates of interest. The financing we offer are through time tested third parties which allow you to put down payment and payoff your balance early. There are NO FEE increases.

5. SERVICE DURING DEFAULT. We understand that a business can go though rough times due to a variety of uncontrollable factors. So if our customer decides to finance the systems and in the unfortunate instance they fall behind on their payments, WE WILL CONTINUE TO support our customers. Sintel Systems will not add to your worries and will be your partner to help you out.

6. Service and support is not mandatory with Sintel Systems. The customer chooses.

RECOMMENDATION: Always read the fine print and ask questions. If it’s too good to be true, then it probably is. Contact one of our technical experts at 855-POS-SALES or email us at POS@SintelSystems.com

*About the comparison: The above comparison was completed in August of 2011.The free POS provider is owned by United Bank Card Inc. and widely advertises its system as free by using slogans such as “FREE POS System for Retail or Restaurant” and “FREE POS SYSTEM – NO GIMMICK – (NATIONWIDE)” and “Is FREE in your budget?”