Mobile credit card payments allow customers to make purchases quickly and move on with their lives. You don’t even need to use a large credit machine for these transactions. All you need is a small mobile credit card reader on your smartphone. These devices let customers pay anywhere and anytime using a swipe or other quick method. Retailers must offer mobile credit card payments and contactless payments as customers get more familiar with these methods.
Mobile credit card readers explained
Mobile credit card readers are devices that plug into the headphone jack of your smartphone. This allows your phone to act as a credit card reader. To use the reader, you usually need to download an app for mobile payment processing.
Learn more about mobile credit card readers below. Some card readers allow you to accept other payment methods, such as PayPal and Venmo. You can still purchase if you lose internet access.
Apps and mobile credit card readers can help you track your inventory and provide electronic receipts for your customers. There is one downside to all of this: you will have to pay processing fees in order for you to use a mobile card reader. These fees can be calculated on a flat rate, per transaction basis, or a combination.
Mobile credit card readers allow you to accept credit and debit card payments using a mobile device. This is unlike conventional terminals.
Mobile credit card readers: How they work
Three types of mobile card readers are available, all of which work slightly differently and have varying levels of security.
Magstripe: These credit cards are swiped to be used. The payment information of the customer is stored on the magnetic strip. It is not encrypted and is static. Scammers can easily steal credit card data from customers.
EMV is the official term used for credit card chips. Scammers are unable to access this information because chip data dynamically encodes payment data. EMV mobile payments are, therefore, much safer than magstripe. You could be held responsible for fraud if your company swipes cards with EMV chips (rather than inserting them). The data complexity in EMV transactions may also lead to longer processing times. See what else small business owners need to know about EMV. ]
Near-field communication (NFC). Also known as “contactless pay” or mobile payments, NFC allows wireless transmission of customer payment data to a mobile card reader from a customer’s mobile phone. NFC data changes dynamically with each transaction. This makes contactless payments more secure. Customers must also enter their PIN or use their fingerprints to approve NFC payments, which adds additional security. NFC transactions can be processed almost instantly.
Bluetooth can be enabled on any magstripe card reader, EMV card reader, or NFC card. You can accept payments from customers within a few feet of your smartphone or tablet with a Bluetooth-enabled card reader. It’s not necessary to carry your smartphone or tablet with you for every transaction. Your Bluetooth-enabled device is enough to accept payments within a short distance.
Myths about mobile credit card processing
Accepting mobile credit card payments
There are many options available for accepting mobile credit card payments. It is simple to learn how to accept credit cards via mobile devices, but you must understand the process. Follow these steps to get going.
Own a small business
Although it may seem obvious, most mobile credit card payment providers require that applicants prove they are a business in order to sign up for their services. The credit card reader is not available for non-business or personal use.
It’s good news for entrepreneurs that any business can be approved.
MoneyTips’ senior analyst for finance, Nathan Grant, said that small business owners, street sellers, and businesses who set up at various events during the year could all benefit from mobile processors. But brick-and-mortar stores should also consider them if they wish to be able to accept payments away from their cash register.
Mobile credit card readers are more affordable and portable than other options. They’re also a great option for small businesses. Businesses that do not accept credit cards will almost certainly lose out on sales, as people are carrying less cash these days.
Pick a mobile device
You must have at least one mobile device compatible with the reader before you can select it. There are options available for almost every mobile platform, including iOS, Android, and Windows Phone.
Modern credit card readers are compatible with your existing devices. The reader is all you need. The majority of credit card readers connect to your device through the headphone jack, charger port, or USB port. They are small enough to fit into your pocket.
Many services let you process payments by manually entering your credit card details into any phone that is connected to the internet. Most small businesses will opt for a card reader for convenience, lower processing fees, and privacy.
Choose a company that processes credit cards
The most difficult part of choosing the right credit card processor for your business. When shopping around, you should consider the startup costs, monthly fees, and compatibility of devices.
The top credit card processing companies offer competitive transaction fees and have a quick and easy application process. They also have a high approval ratio. The leading services all provide similar features, but the prices and costs can vary greatly. Some services lack basic features like the ability to capture a signature on paper or to cancel transactions from your mobile phone.
Grant explained that the main differences between mobile processors and traditional processors were in terms of fees and costs. These depended on what types of payments you wanted to be able to accept for your company.
Compare the charges and features of each service provider when selecting a credit-card processing service. Some services may require you to use a mobile application. The app will allow you to use your mobile device that is connected to the internet or your mobile credit card reader. Be sure to check what each vendor offers.
Card readers are available that accept both credit and debit cards. However, you should confirm this with the manufacturer before buying its processor. You’ll need to make sure that there are no added complications when using different types of cards. Some customers prefer to use a debit or credit card.