How Does Mobile Credit Card Processing Work?

How Does Mobile Credit Card Processing Work?

The advance of technology and a competitive marketplace have combined to make it easier than ever for small businesses to start accepting credit cards. One such development is mobile credit card processing, whereby a smartphone, tablet or similar mobile device can be converted into a debit and credit card-reading terminal.

Cash is No Longer King

The facility to take credit and debit cards is now so common place that ‘cash only’ signs are becoming a rare sight. A minority of customers might appreciate that some retailers prefer to resist the march of the plastic, but the majority will, at best, judge them as being behind the times and inflexible and, at worst, as untrustworthy (are they paying tax on those transactions?)

With mobile credit card processing enabling everyone from mobile dog groomers and garden services to food truck retailers and car wash operators to start accepting credit cards – and at affordable prices too – the old excuses are beginning to wear thin.

But how does mobile credit card processing work in terms of technology?

The Technology Behind Mobile Credit Card Processing

In essence, to start accepting credit cards on the move you need three or four components: a mobile device (smartphone, tablet, iPhone, etc.); a mobile app; a merchant services account and, in some cases, a physical card swiper (that usually plugs into an audio jack). Of course, all of these elements need to be compatible with one another and so they usually come together as a package.

The app and swiper, if included, effectively transform the mobile device into a credit card processing terminal similar to the POS machines seen at shops, bars and food joints throughout America (and the world). The precise technology used to transmit information from swiper to app (e.g. Bluetooth, sonic waves, etc.) will vary depending on the manufacturer, while app-only services will require manual entry of data.

So how does mobile credit card processing work in terms of fees?

Mobile Credit Card Processing and Merchant Services

Mobile credit card processing technology generally comes supplied as part of a merchant services package which will handle card authorisation and provide a merchant bank account for the holding of payments. Sometimes the technology is provided free and sometimes merchants have to buy or lease the equipment, but the overall cost of the package is the most important factor (together with security of course). Therefore, merchants need to do their due diligence before they start accepting credit cards as fee structures can be complex and obscure.

Costs to watch out for are the percentage cut for the card processing company, per-transaction fees, monthly or annual fees, address verification fees and contract set-up fees. In fact there are endless ways in which you could be asked to pay for your merchant services package; the right solution for you will depend on factors such as the average number and size of transactions and overall turnover.

To help businesses work out the best mobile credit card processing solution for them. Speed Fund LLC offers Free Equipment called Phone Swipe. Unlike other companies it comes with live phone support, the lowest fees as compared to other companies. Only 2.69 percent no other fees only pay when you use it.  By taking advantage of this Free offer from Speed Fund LLC, you could be up and running with your own mobile credit card terminal in no time at all.

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