How to Accept Credit Card Payments on Mobile Devices –

  • Using a mobile credit card reader is a great way for small businesses to make sales at events, but not every brick-and-mortar store needs a mobile credit card reader.
  • Consider fees and security measures during the mobile card reader purchasing process.
  • Mobile credit card processing makes it easier for customers to pay from anywhere, which can give your business an advantage over competitors.
  • This article is for small business owners who want to learn more about mobile credit card readers.

As customers act, little businesses react. With customers wanting to make purchases cursorily and well, small businesses are turning to mobile credit circuit board readers to make it easier for customers to pay from anywhere with merely a swipe. By coupling your smartphone or tablet with a accredit card reading accessory, it ’ s comfortable to process transactions – whether you ’ re at a conference, a node ’ sulfur outside work locate or merely at home. You can even take your products on the road to trade shows and accept payments at the indicate by using your mobile device and fluid credit card reader. You don ’ t have to bring a bulky credit menu terminal or credit rating poster machine to every event, as your mobile telephone and the addition device take up minimal space and can allow your occupation to make money. It ’ s a elementary action that helps make payment serve easier for little businesses. Editor’s note: Looking for a credit card processor for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

What is a mobile credit card reader?

A mobile credit poster reviewer is a device that you attach to your smartphone so that your call can act as a credit wag subscriber. These devices enable payment through traditional credit card swipes, chip payments or contactless payments. Key takeaway Key takeaway: A mobile credit batting order reviewer allows you to accept debit and citation card payments via a mobile device .

How mobile credit card readers work

There are three types of mobile citation calling card readers :

  • Magstripe. This term is the official name for credit cards that customers swipe to pay – the term is a portmanteau of “magnetic” and “stripe.” With magstripe mobile credit card payments, the customer’s payment information is stored in the card’s magnetic strip, where it is static and unencrypted. As such, scammers can easily steal a customer’s credit card information.
  • EMV. This term is the official name for credit card chip payment. Since chip data dynamically encrypts customer payment information, scammers have a far more difficult time accessing this information. This makes EMV mobile credit card payments significantly safer than magstripe payments. If your company swipes cards that have EMV chips, you could be held liable for any resulting fraud. You should also note that the data complexity of EMV transactions can lead to slower processing times.
  • Near-field communication (NFC). More commonly known as contactless pay, NFC facilitates wireless customer payment data transmissions to a mobile credit card reader directly from the customer’s phone. NFC data is dynamically encrypted and changes with each transaction, making contactless payments especially secure. Additionally, customers must enter a PIN or scan their fingerprint to approve NFC transactions, adding additional security. Notably, NFC transactions are processed near-instantly.

  • Bluetooth-enabled. Whereas the above three categories describe how customer data is transmitted from a customer to your company’s credit card processor, any magstripe, EMV or NFC card reader can be Bluetooth-enabled. With a Bluetooth-enabled reader, you can accept customer payments within a short distance of your smartphone or tablet. Put another way, with Bluetooth-enabled readers, you don’t have to bring your smartphone or tablet with you to every transaction – your reader itself is all you need within an adequately short distance.

[Read Related: Mobile credit card processing myths]

How to accept credit card payments on your phone

The grocery store is crowded with a dizzy array of options for merchants looking for an easier means to accept accredit cards. Learning how to accept mobile credit batting order payments isn ’ triiodothyronine excessively challenging, but it requires an understand of the process and the major players in the market. It ’ randomness important to take the necessity steps when seeking the right mobile tease reviewer for your business. The steps include :

1. Own a business.

It might sound obvious, but most mobile credit batting order requital providers require applicants to prove they have a business before they can sign up to use the service. The good news for business owners is that these platforms were designed with small businesses in mind. That means virtually any business of any size can get approved whether you own a boutique, run a handyman servicing or sell wool socks you knit in your spare time. While a mobile credit card central processing unit makes the most sense for businesses that move around or host events, that ’ s not the entirely type of business that can benefit from the device. “ Small business owners, street vendors, and businesses that set up at events throughout the class can benefit greatly from fluid processors, but brick-and-mortar stores should still consider it if they want the option of paying away from the cash cross-file as well, ” said Nathan Grant, a credit diligence analyst at Credit Card Insider. The smallest businesses have the most to gain by opting for mobile credit wag readers, which are cheaper and far more portable than traditional options. Businesses that don ’ t accept credit cards are virtually guaranteed to miss out on some sales. If you own a small commercial enterprise, you ’ ve checked off the first footfall of the summons to obtain a mobile credit rating card reader. Again, it seems obvious, but it ’ second significant you follow the guidelines and rules to ensure you ’ re given a card reader .

2. Pick a mobile device.

Before you pick up a fluid credit wag reviewer, you ’ ll need at least one compatible mobile device. But don ’ thymine concern – there are options for virtually every mobile platform, including io, Android, BlackBerry and Windows Phone. One major benefit of advanced accredit card readers is that they work with the devices you already own. That means there ’ s no necessitate to carry around extra hardware, apart from the reader accessory itself. Most credit wag readers attach to your device via the earphone jacklight or charger port and are little enough to fit in your pocket. If you ’ five hundred prefer to process payments without a separate arranger, many services allow users to complete a transaction by manually entering credit menu information into any internet-connected call. But for the sake of convenience, lower fees and privacy, most little businesses should spring for a tease lector accessory. Some services require the use of a mobile app. Downloading that app will allow you to properly use either an internet-connected mobile device or the mobile credit batting order lector. Each business is a fiddling different with how it uses its requital gateway, so be certain to know what offering you ’ re receive. Most devices accept both debit cards and accredit cards, but for the sake of clarity, it ’ s not a badly theme to confirm with the company before purchasing the processor. Some customers may prefer to pay with a debit calling card, so it ’ sulfur helpful to ensure there aren ’ t any add complications with using different poster types. The process for paying may besides be different with a debit card. Make sure you know the intricacies of each requital type to better understand the electric potential customer feel .

3. Pick a credit card processing company.

Choosing the right field service for your business is the most complicate part of the process. You ’ ll have to include the startup costs, fees and compatibility in your commercial enterprise plan. The best credit tease processing companies offer competitive transaction fees, a fast and rid application process, and a high approval rate. Many of the leading services offer alike functionality, but fees and early costs vary widely. And some lack a few basic features, like the ability to capture a written signature or invalidate transactions directly from your mobile device. [Check out our review of National Processing for the lowest transaction rates.]

“ The elementary differences between traditional processors and mobile processors are the costs and fees associated, which depend on which types of requital you want to be able to accept for your business, ” Grant said. For minor businesses, fees are a critical consideration. Will your business save money by offering transactions through mobile recognition wag readers, or will the add convenience for customers hurt the commercial enterprise ’ s fiscal bottom line ? If your business can ’ triiodothyronine find a way to use a mobile credit card reader, it might be deserving using more traditional recognition menu processing solutions. Grant offered a solution for small businesses worried about the fees associated with a mobile batting order subscriber : “ If you want to be able to offer mobile payment methods but worry it could cut into your business, consider setting a minimal requital for credit purchases. ” Let ’ s say you run a local candy workshop, and you ’ re at a community event downtown. Consider requiring a minimal leverage of $ 10 if a customer wants to pay using a recognition wag. This way, the fees for your mobile calling card reviewer will merely apply if a customer at the event buys $ 10 or more worth of product. You can accept cash for all purchases under $ 10. If fees are a refer, there are ways to work round them to better serve your business. When it comes to selecting the best credit rating batting order process overhaul, it ’ sulfur significant to look at the fees each ship’s company offers. It ’ second besides significant to look at the unlike features each company offers. Find a recognition menu processing company that best lines up with your business ’ second needs and then make a decision on which company to use. [Merchant One is our best pick for the credit card processor that offers the most features.]

4. Secure your device.

Before you process your first credit wag payment, take a few minutes to ensure your device is secure and all software is updated. That includes checking to make sure you have installed the latest updates to your mobile operating system. lone install apps from entrust sources. Apps that you download from the Apple App Store, Google Play, BlackBerry World or Windows Phone Store are credibly finely ; apps downloaded from elsewhere on the internet may not be. During business hours, consider keeping the device you use for fluid transactions locked with a password. If the device is lost or stolen, you ’ ll perch easy knowing your data is safe. Keeping data safe is an often-overlooked aspect of using mobile accredit circuit board readers, but it should be an significant think for businesses. If your mobile calling card proofreader gets hacked, the ensuing fallout could damage your small business ’ sulfur reputation. Always exploit to protect your customer data. recently, 7-Eleven Japan deal with a fluid payment action issue. The company launched a mobile requital app, but the app had a defect and a hack was able to make $ 500,000 worth of purchases on the cards of roughly 900 customers. Security should be a precedence when accepting payments via your fluid device. Tip Tip: Before you start processing credit cards, make sure you secure and update your mobile device. Always lock the device with a secure password when not in use .

5. Set up shop.

You ’ ra about there. Most services will ship you a free card-reader attachment for your fluid device when you sign up. Once you ’ ve received your lector, you ’ ll credibly have to download a equate app for your device. Each app is different, but most will have to be set up. You will likely be able to specify whether to display a sphere for tips and prompt customers to enter their e-mail savoir-faire, among other options. If you ’ re taking the credit poster reader to an consequence as your main room of accepting payments, test it out before attending the event. Losing out on sales because you didn ’ thymine set up your payment central processing unit correctly would make for a negative event. Avoid that frustration by taking the time to properly set up and test your device before accepting payments from customers. Make certain customers can pay without topic .

6. Promote your new mobile credit card payment option.

What good is having a modern mobile requital option if cipher knows about it ? potential customers might steer absolved of your occupation if they think it isn ’ deoxythymidine monophosphate equipped to accept credit cards. You want them to know that it ’ second comfortable to pay for your products. Make sure to mention that you ’ ra immediately accepting credit cards. And if customers visit your place of business, put up a sign explaining the new payment option. You can besides use your web site and sociable media outlets to spread the parole, specially if you ’ re attending events or barter shows. share that you ’ ll accept credit cards at the event to better appeal to customers.

The bottom line

Mobile recognition card readers can be a good investment for businesses, specially businesses that master of ceremonies or attend events frequently. When finding the right mobile credit card processor for your business, scrutinize cosmopolitan price, fees and security measures. The goal of accepting citation card payments on your mobile earphone is to make it easier for customers to pay from anywhere. If you keep that goal in heed while besides aiming to reduce costs and increase data security, your business will be in a adept plaza. Additional reporting by Max Freedman and Brett Nuckles.

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