Mobile Credit Card Processing Buying Guide

Before you rush out and buy the first mobile credit card processing solution you hear about, consider the alternatives and figure out which option will work best for you and your unique company. To get a better idea of which mCommerce payment solution is best for you, consider the following 5 questions:
 

Do I really need to process credit cards on my phone or PDA?

The real question is, can you really afford not to? If you sell products at trade shows or conventions, door-to-door services, in-home services, on-site services, or any product or service away from a retail location, the answer is a no-brainer. Sure there are online payment solutions and “wireless” credit card terminals, but neither option is as convenient or portable as doing it all right on the phone you already carry with you. With the right mobile credit card processing solution, you can accept credit cards anywhere.

 

What phone(s) do I already have?

Chances are you can use the phone you or your employees already have. There are mobile payment apps for all of the popular smartphones (iPhone, BlackBerry, Android, Palm, Windows Mobile), service providers (Verizon, T-Mobile, Sprint, AT&T) and networks (WiFi, Edge, 3G). Some credit card processing apps work with any Java ME enabled phone, or even any phone with internet access. But not every service supports every device or carrier, so you’ll want to find the one that works with your existing hardware.

You always have your phone with you, and you don’t have to lug around heavier (and more expensive) equipment. Another benefit of using your own phone(s)? You’re not stuck with a clunky terminal for 5-10 years; you can upgrade your hardware any time you get a new phone!

Can I use my existing merchant account and/or payment gateway?

Most small businesses already have a merchant account and a payment gateway they work with to process credit cards online. Maybe you already have an account with PayPal, VeriFone or Authorize.Net and don’t want to sign up for another. The best mobile credit card processing services will work with your existing merchant accounts and payment gateways.

Don’t have a merchant account yet or are ready to try a new payment gateway? Most of the cell-phone credit card processing companies are more than happy to get you going with theirs, or have a few preferred providers to recommend.

How much business do I plan on doing?

When you sign up for an account to process credit cards on your phone, you’ll be asked to estimate how much business you plan on generating through credit cards. It’s important that you’re realistic with your goals, both in number of transactions and credit amount.

You should really calculate these numbers before you sign up so that you can evaluate which per-transaction rates will work best for you. For every transaction, you’ll likely pay a base authorization fee ($0.15-$0.30) plus an additional percentage. The rate will be higher (2.2%-3.5%) if you use the “card not present” (manually keyed in) rate, but if you use a Bluetooth swiper, you can take advantage of the lower “card-swiped” rates (1.7%-2.9%). Depending on the frequency and amount of transactions you process, investing in a Bluetooth card reader or swiper/printer combo can really save you quite a bit of money.

Which features and benefits are the most important to me?

One of the nice elements of using your phone to process credit cards is that there are several unique benefits and features that your phone makes possible. Utilize your built-in GPS to keep track of where you’re doing the best business. Your customers can use a stylus or even their finger with your touchscreen phone to capture a signature. With the right app, you can even take care of sales tax, let customers add a tip, or email/text a digital receipt.

As you can see, there are several things you should consider before investing in a mobile credit card processing solution. But you don’t have to look at each individual service to find out which one is right for your business. Check out our side-by-side comparison and comprehensive reviews of the best overall cell phone credit card processors and find the right combination of features and pricing. We’ve reviewed the top contenders for mobile credit card processing, including Wireless ePay, Intuit GoPayment, Merchant Anywhere Pocket Verifier and more. At TopTenREVIEWS We Do the Research So You Don’t Have To.™

please do double check the process so that all will be transparent.