Published December 23rd, 2015
Thinking about mobile credit card processing
? Keeping up with current demand for efficient and secure customer service that comes with mobile credit card processing is going to be a good move in 2016. More customers and businesses rely on their smart phone and are becoming aware of the capabilities of mobile credit card processing.
The fact of the matter is that most customers just aren’t carrying stacks of cash around, and it’s easy to see why asking your customers to leave and withdraw money may mean that you just lost a sale.
Time is valuable, and one benefit that mobile credit card processing provides is creating a quick and easy way for your customers to process payments. Whether you’re a stylist, a crafter, or you own the favorite local bakery, giving your customers this payment option not only helps them but you, too.
If you’re ready to learn more, read on to find out why it is a smart business move to start accepting mobile credit card payments, and how to find the best mobile credit card processors. Check out our list of the top 3 processors for December 2015 on down below, and make sure you’re ready for the business that awaits in the coming year.
The Ever-Increasing Move to Paperless Spending
According to a Nilson Report
that covered the changes that are projected to occur by the year 2017, customers will have doubled the amount of card purchases in the last ten years. The consistent trend to favor technology means that as customers transition even farther away from cash, you could be missing out on sales if you don’t keep up.
In fact, a large software company that has studied the recent changes in small business - and how credit card processing has affected consumer behavior - reported that businesses that don’t offer credit card processing as a payment option miss out on up to $7,000 a year, on average. Another report by Forrester Research projects that at the close of 2017, US mobile consumers will end up spending $90 billion in mobile payments, and that is a 47% boost from what was reported only a few years ago.
That’s a pretty hefty chunk of change, but it reflects the attitude customers have. It’s not only about quality, this trend to favor mobile processing also reflects the customer’s preference for convenience.
What a Mobile Credit Card Processor Can Do For You
Having the ability to accept payments wherever you are can be a huge draw for many businesses, but mobile processing can also be beneficial to the store-front business as well. If you currently don’t take any credit cards – or are still keeping paper copies of credit card transactions – read on to find out how this newer technology works and how it can help your business.
For businesses that haven’t made the switch to accepting credit card payments at all, mobile credit card processing offers a cost-effective way to swipe credit cards securely without purchasing a lot of equipment. All you need is any internet-connected device and the swiper.
If you’re still manually entering credit card information, you should be aware that it will actually cost you more in the long run. Since the risk of fraud and user error increases when you manually enter the digits from the card, the transaction rate on manually entered transactions increases.
When you swipe the card from a traditional point-of-sale terminal or the mobile credit card processor, you’re taking advantage of the built-in security features from the magnetic strip. The other benefit is that the transaction time to process the sale will also be reduced because it’s a virtually instant process.
Many business owners also like the idea that they don’t have to worry about a lot of equipment and their clients get an instant e-receipt as a record for the sale.
Boosted Security Benefits Your Customers and You
In addition to being able to enjoy lower fees and rates from swiping vs manually entering payment information, you also boost the security of the sale. According to senior economist Fumiko Hayashi, mobile payments have the capacity to reduce fraud during your payment transactions. He makes the following two points:
Finding the Best Mobile Credit Card Processor for You
- Mobile payments facilitate dynamic authentication during the sale. Instead of relying on static data, like the account number and expiration date, mobile payment solutions can make use of a chip embedded on the mobile device to authenticate with unique data that’s assigned to each particular transaction. Even if this information is somehow intercepted by a criminal, the data can’t be used for future transactions because it was unique to the sale itself.
- Password protections on the mobile payment application and the phone can reduce the likelihood of fraud as well. Adding password protection adds layers of security that make it that much more difficult for information to be intercepted – this security certainly doesn’t exist with traditional methods. As technology advances, so will new layers of protection and authentication.
The good news is that when you upgrade to accept credit cards, you give your customers more ways to do business with you, but you’ll want to find the mobile credit card processing company that’s right for you. You can compare companies and ask what their fees and rates are.
There will be some factors that will contribute to the rate you will be quoted:
- The average amount of each transaction
- Amount of years you’ve been in business
- Your personal credit rating
- The chargeback risk associated with the type of product or service you sell
When you’re calling around, use this checklist to inquire about rate structures that will apply to you:
- Qualified Rate
- Non-Qualified Transaction Rate
- Mid-Qualified Transaction Rate
- Debit Card Network Fees
You’ll want to focus on the transaction processing rates, as those will be what is directly connected to accepting each debit and credit card payment. The rate-per-transaction fee is figured by taking into account the short list from above such as the average amount per transaction and your specific business.
To get the best rates over the long term, ask questions to make sure you get all the information on associated fees. It is true that some companies will quote you the qualified rate and neglect to mention what happens when a mid-qualified or non-qualified transaction is processed, so ask about those specifically as well.
You’ll also want to ask about any cancellation fees in the event you choose to switch companies in the future. Being locked into a long-term contract can get expensive, so make sure that you understand all the terms and conditions by reading over the agreement carefully.
Asking about their customer service upfront is also an important deciding factor. Do they charge for customer service? You might be surprised to find out that there are credit card processing companies who do charge.
Having a company available after normal business hours is also a must-have because you don’t want to leave a voicemail for service – help should be a phone call away in the event you need technical service or have other customer support issues.
Top 3 Mobile Credit Card Processors of December 2015
#3 Credit Card Processing Specialists |
Top Credit Card Processing Specialists was founded in 2010 and boasts an impressive 98% client retention rate. In addition to helping you solve your mobile credit card processing needs, they also offer traditional credit card processing, payment gateway, point of sale systems, and other related services
. Their top clients include Advance Auto Parts, Ace Hardware, and Discovery Network.
#2 Cayan |
Cayan was founded in 1998 and has a solid 98% client retention rate. This company can assist you with traditional credit card processing, online credit card processing, and retail processing, in addition to mobile credit card processing. Top clients include Retail Pro, Lightspeed, The Orchard, By Brooklyn, and Popcorn Paws.
#1 BankCard USA |
Agoura Hills, California
BankCard USA was established in 1998, and has a steady client retention rate at 96%. They can assist you with payment gateway services, credit card processing, and they can help you with your mobile processing needs as well. Top clients include Supertone Hearing, Coastal Dermatology, and Lunaria Music.
How do we determine who gets on the list? We evaluate a how competitive the company’s rates are, how reliable the company has shown to be, as well as client feedback, customer support, and more. Learn more about our explanatory evaluation methods page.
When you’re looking for a solid mobile credit card processing company, it’s important to look at a variety of factors. Now that you have a great starting off point toward your search, you’ll be able to ask the right questions and land on the company that’s best for your needs.
What will be vital for you during the upcoming year is to open up more possibilities for business with your customers. Providing mobile credit card solutions for your customers can be the next big step forward for your business in 2016.
||· Seeking Alpha, “Investing in the Rapid Growth of Digital Payments,” 7 December 2015. [Online]. Available: http://seekingalpha.com/article/3737996-investing-in-the-rapid-growth-of-digital-payments.
||· I. B. Daily, “Businesses Miss Out on Sales,” 23 May 2012. [Online].
||· P. Parker, “Fee Sweep,” [Online]. Available: https://www.cardpaymentoptions.com/feesweep/.