Wireless Credit Card processing on Your Phone
Is Mobile Payment Processing Right for You?
Have you ever wondered what all the hype is behind Mobile or wireless credit card processing and whether or not it could benefit your business? Maybe you did not even know that there was a mobile payment solution available for your business. So let us take a look at some great reasons why accepting credit cards payments remotely and securely by using a wireless credit card processing solution could benefit your business.
So, what is a mobile payment processing account? Essentially it is a device that plugs into your cell phone and interacts with a free application to turn your phone into a virtual credit card terminal allowing your business to accept credit card payments for goods and services in person on your smart phone. The best part is when you process using this service your business can appreciate the 30% savings versus when you accept credit card payments manually over the phone. This savings is a direct result of the transaction being much more secure. When you process with an encrypted device like the PhoneSwipe your customer’s sensitive credit card information is not only concealed from your employees in the field but no credit card information is stored on the device, the phone, or the application. Other than Square, most of the devices on the market are encrypted rendering them useless to anyone other than your business. These advanced security measures enable the issuing banks to incur less risk and pass that savings down to you.
To illustrate how mobile credit card processing could benefit your business I would like to start by asking a question:
Have you ever ordered take out over the phone and paid with your credit card? Well of course you have or at least there is good chance that you have! Now, after you ordered your 3 large pepperoni pies with extra cheese, the next thing the clerk asked you for was your credit card information, right? Well is this method to accept credit card payments the best option for the business?...AND...is this in the best interest for you as the consumer? Let’s look at both sides to better understand how a mobile payment solution could greatly benefit both the business owner and the consumer in this situation.
First, we will look at the business owner. Did you know that when a merchant accepts credit card payments over the phone it will cost the merchant on average 30% more per transaction than if they were able to actually swipe the card? ...Well it does and that is pure unrealized profit going down the drain! Not only that, but it is very time consuming and risky to take credit cards over the phone. The only other option is to accept payment upon delivery. In this case the business will now have delivery drivers running around with a bundle of cash waiting to be targeted by unsavory characters and is exposed to possible employee theft.
Next let’s look at the customer. Did you also know that identity theft is 8 times more likely to occur in this type of environment? and that 80% of the identity theft cases in the U.S. can be traced directly to small businesses? Think about it, the clerk now has ALL your sensitive credit card information. YES, even that 3-digit code on the back. A new skateboard may be in his future if you know what I mean...hint-hint! As a consumer you are your giving your sensitive credit card information to someone you don't even know.
The solution to these problems is a mobile or wireless credit card processing account and it can not only save your business a lot of money but protect it, its employees, and its valuable customers. There are a variety of Mobile Payment Processing solutions out there available from a number of reputable merchant service providers. The Merchant Doctor, for instance, offers the PhoneSwipe as their mobile payment solution.
Let’s go back to our example and see what it would look like while using a mobile payment solution. This time when the customer calls in an order for 3 extra large pepperoni pizzas for a total of $100 and the employee takes the credit card number over the phone, prints the receipt for to be signed on delivery, and delivers the hot pies. This transaction would cost the merchant let’s assume is the industry average of 2.25% and .25 or a total $2.50 to process. The business has also opened itself to potential liability. This is because there is no guarantee that the employee won’t save that credit card number to use for his/her own gains (otherwise known as identity theft). Conversely discouraging credit cards and accepting only cash payments in this situation could loose sales and employee skimming is a large can be a concern for some businesses.
Whereas, if you provided a mobile payment option not only is the business and the consumer protected but it will cost less! That very same $100 transaction could cost you for example 1.59% and .25 or $1.84 versus the $2.50 that you paid by taking the payment manually. That’s a .76c savings on that transaction alone or about a 30% reduction in your cost of doing business! This puts pure unrealized profits back into your bank account where they belong - unless of course they belong in a Pina Colada on a beach.
Wireless credit card processing doesn’t only work for pizza delivery so consider a business like a nursery, home repair, office supply or any other business that takes orders and delivers them to the customer and then invoices them for it. What would your cash flow look like if you did not have to spend the time and money billing and waiting for payment on goods that you ALREADY delivered? The whole time hoping that the checks would clear, sending reminder invoices, and making trips to the bank. Wouldn’t it be better to be able to accept a secure mobile payment at time of delivery right in the field and face to face with your customer? From reduced theft opportunities and increasing cash flow to lowering cost and superior reporting capabilities, being able to accept credit card payments on a smart phone is a great way to streamline business models and increase your bottom line.
These facts have made mobile commerce the fastest growing payment processing method in the world. Of Course, the ultimate decision is yours so contact your merchant services provider and ask about their mobile payment service or call the Merchant Doctor. We offer a No Cost, No Contract, No Fees option all with a free card reader and phone app if you would like your business to be able to accept wireless credit card payments today.