Is A Mobile Merchant Account The Right Fit For You?
Credit card transactions are no longer limited to the regular store and online purchases. Now, it is possible to pay the electrician or even buy a beautifully crafted lamp in a trade show using a credit card.
Handymen and trade show vendors are just a few of those who can now accept credit cards.
Through a wireless or mobile merchant account, these goods and services providers can now accept credit cards payments using different equipment:
- Through a phone – works with mobile and the usual home phones. Although there is no need to invest on equipment nor software, the processing fees are more expensive compared to any other mobile merchant accounts. Examples of the fees for one mobile merchant account provider are: $19 set up fee, 2.19% discount rate, $0.75 transaction fee, and $9.99 monthly fee.
- Through a portable swipe terminal – though the unit is expensive in comparison to the rest of the other options, this is probably the easiest to use and one can take advantage of lower processing fees because the credit cards are swiped.
The Way Systems Mobile Transaction Terminal Cell-phone Swipe is an example. This looks and feels almost like a regular phone. It also uses the mobile phone network to process the transaction. A plumber or vendor, for example, can charge a credit card by swiping it or entering the EMV Smart card. This swipe terminal also has a PIN keypad for the cardholder to enter his or her PIN if needed. In addition, the swipe terminal has its own battery so there is no need to plug the unit to a wall socket. Finally, a receipt can be printed for the merchant and the cardholder. This unit costs $399 and up.
- Through a card reader connected to a PDA phone (like Blackberry) – the equipment is cheaper than using a portable terminal and this method of accepting credit cards also takes advantage of lower processing fees because the credit card is swiped.
The ePN Mobile Swipe is an example of this. This device works with Java compatible mobile phones or PDA phones that can access the internet. Although cheaper than a portable swipe terminal, there is some installation required. Transactions are stored in the internet, not in the phone, for safety. The unit costs around $135.
- Through a virtual terminal installed in a portable computer – this needs a laptop or notebook that has internet connection. May be used with a USB swipe terminal. The swipe terminal costs around $85.
Conducting business that accepts credit card payments are now available not only to the brick-and-mortar and web stores but now also to vendors in craft shows and expos, as well as carpenters, plumbers, and electricians. Having the right mobile merchant account means looking at all possible expenses, advantages, and disadvantages in the present as well as in the future.