If you’re considering mobile credit card processing for your business, you’ll need to know about rates, reliability, and cost. Also, you’ll need to understand how mobile credit card processing can integrate with loyalty and incentive programs. These benefits should help you decide whether it’s the right solution for your business.
Rates for mobile credit card processing
Generally, mobile credit card processing companies use a flat-rate pricing structure, meaning merchants pay a fixed percentage of each transaction. Regardless, the rate increases if the transaction requires manual keying in or the customer purchases online.
The best mobile credit card processing services offer flexible terms for processing transactions. For example, many allow month-to-month service and don’t charge early termination fees. Others require standard processing contracts that last three years and automatically renew for one or two years. If you’re unsure about the terms of a payment processing contract, ask for a link that outlines the terms and pricing.
While the cost of mobile credit card processing may seem prohibitive, there are ways to reduce its expenses. Small businesses can start by setting up a low credit card minimum, as the Dodd-Frank Act allows businesses to set a lower transaction threshold. These minimums are usually between $3,500 and $5,000.
Some payment processors have tiered pricing models, which group transactions into tiers and charge higher processing fees. These models are also more expensive than others because they require a merchant to purchase equipment. For instance, mobile readers can be inexpensive, but a credit card terminal and register can run upwards of $1,000.
For small businesses, this method can be the perfect solution. Since you only pay for the processing fees when you process a single transaction, you can avoid monthly fees and long-term contracts. You’ll need a smartphone or tablet and a card reader to process cards using a mobile payment processor.
Reliability is an important factor when choosing a mobile credit processing service. According to a Pew Research study, debit cards are more reliable than mobile payment services. However, mobile payment services are attracting more businesses.
In the past, credit card processing required a hard-wired terminal to process cards. Now, mobile technology has made it possible to use a tablet or smartphone as a credit card terminal, enabling businesses to process payments wherever they are. This makes mobile credit card processing ideal for businesses that need to take their product or service to various locations. These include food trucks, farmers’ markets, and trade shows. In addition, many customers do not carry cash, so offering a credit card option to pay increases the chances of making a sale.
Integration with loyalty and incentive programs
Integrating loyalty and incentive programs at the point of sale (POS) is an effective way for brands to improve customer relationships. It allows them to interact more directly with customers and build a broader loyalty network.
The growth of customer loyalty has become an integral part of nearly every business. From large corporations that develop a loyal customer base through extensive marketing campaigns to small businesses that strive to build personal relationships with their customers, loyal customers are essential for revenue growth. However, today’s consumers are overwhelmed with marketing messages and are highly sensitive to being targeted. This makes it critical for businesses to find a way to engage with these consumers in new and innovative ways.
While loyalty programs have many benefits, they must be properly integrated into the business. Using data collected from these programs can uncover areas for further exploration. F
Mobile credit processing apps are a great way to accept payments but they need hardware. First, you must have a card reader to process credit cards. Many mPOS providers provide free card readers for their users, typically basic magstripe readers. Since liability for fraudulent transactions has shifted to the least secure party, ensuring your mobile credit card reader is important.
Secondly, ensure that your credit card processor is approved for your business. Most mobile credit card payment providers will require proof of business and are designed for small businesses. However, you can usually get approved with virtually any type of business, and they are perfect for businesses that move frequently or host events.