Mobile phones have become a vital part of our life. Since text messaging became a hit in the early 2000s, almost every individual went to the phone stores. They bought mobile devices that had this feature.
Fast forward to 2016, the appearance and features of these gadgets has changed. They have become sleek, yet bigger. Antennas are now invisible. Keypads have become virtual. But the greatest change that happened to this gadget is the ability to connect to the Internet.
For this reason, the use of mobile phones has changed. Gone are the days when its only purpose was to text and call someone. Nowadays, you can use it as a camera, as a music player, and as a computer. But did you know that you can use it as a credit card processor too?
Nowadays, more and more business owners are using this device as a credit card machine. They just need to download an app that lets them use their smartphones as a credit card processor. Otherwise, they can connect some hardware that will convert it into a credit card machine.
However, many people are skeptical about this change. They feel like this device can’t protect their information from crooks and hackers. If you have doubts with this payment process, let this article change your mind.
In this blog, you’ll learn what it is and its advantages. You’ll also learn its different types and some tips for choosing mobile credit card processing companies. So without further ado, let’s begin the discussion!
What is the mobile credit card processing?
Like any payment processing method, mobile credit card processing is a system that handles credit card transactions. The only difference is that these credit card processing companies manage your account online.
Mobile payment processing works in two ways. First is by downloading a credit card processing app. In this software, you only need to key in the credit card number to start a transaction.
The second method is by installing a portable credit card reader. In this process, you need to connect the terminal to your smartphone via USB. Once installed, your device can now store data, send payments, and give receipts.
Wireless credit card processing offers numerous perks. For one, you can process a transaction anywhere you go. Whether you own an online store or a traditional shop, you can make a sale wherever you may be.
Another benefit is the cost. Out of all payment methods, wireless payment processing is the cheapest system. You can get a terminal for a fraction of a cost or download an app for free!
Lastly, you can make a transaction via the Internet. You just have to install an anti-virus application to avoid virus threats.
Types of Mobile Credit Card Processing
There are three types of mobile payment processing. These are accepting cards via a mobile device, accepting cards via touch-tone phone, and receiving payments via the Internet. You may think that they are all the same. However, they still have differences, which can help you distinguish them.
To help you determine their differences, let’s discuss each type one-by-one.
Accepting Cards via a Mobile Device
With a portable swipe hardware connected to a computer, you can accept payments wherever you are.
Some of the best credit card processing companies use wireless credit card terminals. It allows both credit card and pin-based users to process a transaction. The company processes your cards through your account when one of your devices receives a credit card payment.
When used as a credit card processing platform, smartphones need a small device connected to the unit. This device is where clerks swipe the credit card. Once the transaction is successful, the company will send the payment to your phone and deposit it to your account. You can also enter the credit card details to process the payment.
Accepting Cards via Touch-Tone Phone
This method lets you process credit cards anywhere, as long as you have a phone service. Generally speaking, telephone credit card processing companies have a fee-per-transaction and affordable monthly fees.
It’s easy to transmit cash using this method. You just need to dial the access code and enter the credit card number.
Accepting payments via phone is another feature offered by traditional credit card processing companies. So if you have a merchant account, check if the provider has a phone processing system. That way, you can call in the buyer’s card details while traveling.
Receiving Payments via the Internet
If you have a Wi-Fi kit in your car, then you can hire a web-based payment processing service. This solution uses the Internet to process payments. You just need to key in the credit card number of your customers to start the purchase. Submit the data, and you’ll get the cash instantly.
The good thing about this method is it allows you to process transactions whatever device you’re using. The important thing is that your gadget is Wi-Fi ready and that you have an Internet connection.
Steps You Need to Do Before Getting a Mobile Credit Card Processing Company
There are many credit card processing services on the market. They all claim that they are the best credit card processing companies. Before you believe in their claims, there are a few things that you need to do.
Here are some guidelines that you must follow before you get a particular mobile credit card processing service.
Check if the company has a P2PE solution. P2PE stands for “Point-to-Point Encryption.” This solution was established by the PCI Council. It provides protection for all credit card holders. It encrypts the data before it enters your gadget.
The good thing about it is that the information stays encrypted, even after the transmission. Hence, if someone checks the data of your account, all they can see are encryption codes.
However, not all credit card processing mobile services has this solution, despite the PCI Council’s order. Either they don’t have it, or the committee hasn’t validated their solutions yet. Thus, you have to check their website or go to the CrowdReviews’ page before hiring their services.
Check for recommendations. If you have accepted credit cards before, you may need to ask them for some recommendations. They might recommend a service that you may like.
Another thing that you can do is to read some credit card processing company reviews. Though they don’t recommend a company, these write-ups will give you an idea of how they work.
Make sure that your mobile phone is safe and updated. When you’re planning to use your smartphone as a credit card processing machine, make sure that it’s safe and up-to-date. Make sure that the phone is not rooted or jailbroken. Rooting refers to gaining the right to install apps that are not supported by Android devices. Jailbreaking is the same thing, but this term is applicable to iPhone.
If the phone is rooted or jailbroken, you can’t use it as a credit card machine. It’s because credit card processing providers don’t support such devices. Moreover, jailbroken and rooted smartphones are prone to breaches.
You also need to check if the app or the system is updated. If not, then consider updating these programs. That way, the machine can work to its full potential.
Check if the processor lets you store card data on your device. Some companies will save card information on your smartphone. Its purpose is to keep data when there’s no Internet connection and send it if it’s already available. However, saving data on your mobile device is risky, even if it’s already encrypted. Thus, you have to check if the company has this feature.
If it does, yet you still want to hire them, turn off the “store and forward” feature for safety purposes.
Lock your phone! Before getting a mobile payment service, you need to get used to using passwords. They can be annoying sometimes, especially if you check your phone regularly. However, activating this feature will help you get used to it once you installed a credit card processor. Consequently, you get to protect the data on your phone.
Mobile credit card processing is one of the innovative ways to handle payment transactions. It uses a mobile app, a small USB unit, and an Internet connection to process payments.
There are different types of mobile payment processing. Each uses various strategies. You just have to choose a method that fits your business.
However, the best thing to do – when selecting a service – is to read credit card processing company reviews. These write-ups will tell you what you need to know about a particular company.
However, not all reviews that you see are dependable. Some don’t even provide the flaws of their service. Thus, you have to make sure that the reviews you’re reading are from a credible source.
There are many reliable websites on the Internet. But if you’re looking for honest reviews of credit card processing companies, then CrowdReviews is the best place to visit! The site provides a list of payment processing firms and ranks them based on customer reviews.
Keith Moore
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