Customers love convenience, and a business that accepts credit card payments on mobile devices provides that. A mobile point-of-sale system makes it easier to operate on the move. With the right tools, you can accept payments without investing heavily in a traditional POS. Keep reading to learn more about mobile payment processing.
What is a Mobile Card Reader?
A business that accepts credit card payments can use a mobile card reader to process transactions. The component attaches to a smartphone or tablet and works with an application to act as a mobile POS terminal. Mobile card readers come in three main forms. A credit card swiper supports magnetic stripe transactions. Magstripe readers are considered old-fashioned and rarely available individually.
They are usually merged with chip or EMV card readers. Credit cards use EMV technology to store data on a chip, which is more secure than magstripe tech. Near-Field Communication (NFC) readers accept contactless payments through wireless technology. Buyers only have to tap a card on the reader to pay. Your credit card processing needs will determine the best card reader solution.
How to Accept Card Payments on your Phone
Do you want to start accepting credit card payments on your phone? Here’s how to go about it:
- Get a payment account – Find a suitable payment processor and open an account to get a card reader. Some processors like Square throw in a free reader when you get an account.
- Open your mobile POS app – Depending on the mobile POS, log in to your account on an app or web app.
- Link the device to the reader – You can only accept credit card payments if the reader and device are connected. Alternatively, you can include a payment link or QR code to process card-not-present transactions.
- Accept card payments – A buyer can now dip, swipe or tap a card on the reader to pay.
Benefits of Accepting Card Payments on your Phone
One advantage of mobile payment processing is that you can take business anywhere. Since you can bring the POS to the customer, you don’t have to be stuck in one place. Thus, the option is ideal for direct sales, food trucks, markets, and other mobile ventures.
For a small business, accepting credit cards via mobile is safer than cash. You don’t have to worry about depositing cash at the end of every business day. Payment processors and merchant account services provide fraud protection to users to increase security.
Supporting mobile credit card payments boosts convenience for customers. If a buyer doesn’t have enough cash, then a card would still work. This flexibility can drive sales and, consequently, revenue.
Integration with your Mobile Device
When considering accepting cards on mobile, think about device compatibility. The best solution must work seamlessly with your operating system. Some providers cater to a specific OS, while others support multiple.
A card processing solution that works on Android devices gives you numerous device choices. Millions of phones and tablets run on Android. Therefore, you are not limited to specific products. An Android system also handles large workloads. Compared to iOS, Android solutions are cheaper.
The biggest appeal of iOS is security. iPhones and iPads come with robust security features that guarantee the safety of transactions. The brand’s credibility is another reason you might want to consider an iOS payment processor. However, this option restricts you to Apple devices, which tend to be costly.
How much does it Cost?
The credit card processing service you pick determines the cost. Mobile card processors remain cheap alternatives for small businesses because standalone products only charge flat rate fees per transaction. You don’t have to enter into a long-term contract. Square, SumUp, and PayPal. Here are some examples. On average, you could pay between 2.65% and 2.75% per transaction. You could also get your mPOS as part of a larger package, especially if you have a large sales volume. The rates will depend on your contract, which may include interchange-plus and tiered pricing. You must also factor in hardware costs. A card reader ranges from $20 to $70.
How to Prevent Fraud
As with any other payment processing solution, you must ensure your mobile POS is safe. Fraud prevention should be a priority for any business that accepts credit cards. You can take several measures toward this. One is using the latest POS technology. EMV and NFC are currently the most advanced technologies in the payment ecosystem. Another precaution is getting a provider that adheres to updated PCI-DSS requirements. The payment card industry has strict standards to protect the customer and merchant.
Secure credit card processing solutions allow you to receive payments using mobile devices safely. You can find iOS and Android apps that turn your device into a POS terminal that enables transactions on the move. Ensure you find a reliable partner to facilitate your credit card payments.