Once a mobile merchant decides to obtain credit card processing capability, he/she must become more aware of the various alternatives that exist to accept credit cards.

A plumber recently performed a repair job at our house (why does home maintenance have to cost so much?), and reported the amount due.  As I reached in my wallet for my credit card, he announced that he only accepts checks or cash.  “Accepting credit cards can only help to expand your business and many of your customers would prefer to pay with a credit card,” I declared.  He politely countered that credit card processing fees are exorbitant and that a wireless terminal is “too much money.”

I encouraged the plumber to conduct further investigation because mobile credit card processing need not be so expensive.  (Although tempted, I did not tell him that I’m in the merchant account field.)  Moreover, there are a couple of other ways in which to accept your customers’ plastic if you’re an on-the-go business owner.

Increasing in popularity is the utilization of touch tone or dial pay processing.  Here, the handy-dandy touch tone phone serves as a conduit to transfer funds from customer to merchant.  The business owner calls a toll free number, and following voice prompts, inputs the customer’s payment information.  The transaction takes about 2 - 3 minutes to facilitate, and the merchant receives a confirmation number when the transaction has been captured.

Many merchant account providers waive many fees when accessing rates for touch tone / dial pay processing, including startup, batch, AVS, monthly minimum, and termination fees.  The monthly expense averages about $10 - $15 in the merchant account field, and the processing cost is typically between 2% - 3.5%, depending on the type of credit card you receive from your customer.  A transaction fee (approximately 20 cents – 50 cents) should be factored in as well.

Some providers include the use of a virtual terminal with their touch tone / dial pay program.  (Other vendors offer the virtual terminal as a standalone item.)  The virtual terminal is a secure Internet-based interface that enables merchants to input payment information on behalf of their customers.  Merchants log on a secure payment site, type in their username and password, and begin inputting the customer’s credit card information in self-explanatory fields.

Mobile merchants may use a laptop to access their virtual terminal or can call the credit card information on to someone who may be at the home office.  The credit card processing rates for the virtual terminal mirror those assessed for the touch tone / dial pay program.  Please note that because the customer’s card is called or keyed in, it is considered “not present” which necessitates a higher credit card processing fee than a “card present” transaction”  (i.e., when a credit card is swiped).

Merchants who need mobile credit card processing may want to take advantage of the lower swiped per transaction processing costs by purchasing a wireless terminal.  Wireless machines (even refurbished models) may run anywhere from $200 up to $1,000 so it is an investment in capital to obtain one.  If you opt to buy a wireless device, make sure that you also obtain a printer and a pin pad, if necessary, to accept pin-based debit cards.  The Nurit 8000 and the Way Systems MTT 1581 are two dependable wireless units.

The caveat of using a wireless terminal is that it generally necessitates a higher monthly cost (as high as $30).  In the scenario that this monthly cost is prohibitive, mobile merchants may still accrue the benefits of a lower swiped rate by buying a gateway, such as Authorize.net, and using a virtual point of sale system.  A Magtek card reader may be used to swipe the customer’s card, and the payment information populates the gateway’s fields.  The sales amount is registered, and the transaction is soon captured and eventually settled.

All merchant account providers offer variations of the aforementioned programs.  Indeed, there are several options when it comes to mobile credit card processing so merchants must evaluate their business’s individual needs, the ease of use for each system, and the associated costs for each option.  Every mobile merchant should be able to find his/her own ideal credit card processing solution! 

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To learn more about our merchant services, please visit http://www.intell-collect.com