Credit Card Processing

By Dylan Mazeika

Mobile credit card services have the potential to transform the business landscape. Small business owners can use their smartphone or other small handheld device as a virtual terminal. Allowing customers to swipe a credit card on a phone or pocket-sized device instead of an expensive terminal means small businesses can easily take their products and services on the road to events including open-air markets, street fairs, and conventions, as well as meet demand for unexpected purchases by impulse buyers.

Which Form of Mobile Payments Is Best?

One of the most popular mobile credit card services is Square. This tiny, square device plugs into a smartphone and uses an app to process payments. You need to sign up to Square to receive a free card reader, with Square taking 2.75 percent of each transaction. The size and ease of use are two appealing features of Square, though the "per swipe" fee is high compared to other devices.

National Bankcard, who ranked fourth on the March 2013 List of the 30 best credit card processing companies, have a portable credit card terminal. Although it is not as convenient as equipment that attaches to your smartphone, it works similarly and allows businesses to access the same set of customers.

In less than two minutes, you can swipe a credit card to transfer money directly into a bank account you set up, have the customer sign the receipt (including calculated tax and a tip option) on the touch screen, and have a receipt emailed to you and the customer. You can even upload a picture of the product to be included on the receipt for the absent-minded shopper.

Mobile Payment Processing Is Cheaper

Mobile processing solutions have fewer fees associated with them than current POS terminals. Pretty much you pay per transaction. Swiped transactions are often the cheapest, with rates fewer than three percent per transaction. If you have to key in the transaction, the rate is higher--usually between three and four percent. With the current payment processing solutions, you have to buy or lease a card reader and pay a setup fee, a subscriptions fee, plus your per transaction fees. Going mobile is not just the future; it may be the most cost-effective way to go.

Going mobile with your payment processing is a great way to keep up with current payment technology and customer payment trends. Don't find yourself stuck in the mobile payment processing stone age, paying more to process credit card transactions with technology that is fast becoming outdated and out of step with your customer's lifestyle. Start looking into different mobile payment processing solutions for your business today.