It is estimated that over 80% of Americans pay with ‘plastic’ cards on a daily basis, and the number is increasing with the prevalence of contactless credit/debit cards and electronic wallets such as Apple Pay. It is no longer only merchants in brick and mortar locations, who need the ability to accept in-person credit card payments; now everyone from on-site contractors to food truck operators need to be able to accept credit card payments.
Luckily, technology has responded to this need with a variety of intuitive and affordable solutions. In this guide, we are going to explore 4 reasons why it is important for you and your business to introduce mobile credit card readers. In particular, we will look at the setup cost, savings, security, capabilities, and features of card readers, so you can determine if this is a good fit for your business.
First, what is a mobile credit card reader?
In most cases, it is a small device that is either attached to a smartphone or tablet. It can be attached through its headphone port or via Bluetooth, which allows the device to read and process debit and credit card payments by either swiping/dipping or tapping the card with the device. These devices are normally controlled through a very simple, easy-to-use application on your smart device to run the transaction. Most devices still offer receipts in the form of SMS or email.
So, what can card readers do for you? Would it be a good fit for your business?
Low setup cost
Adding a mobile payment system is considered to be a relatively inexpensive investment. This is an investment, which can show big returns. There is no requirement to invest in expensive point of sale systems, special tablet devices, or software, with large maintenance contracts. Most companies offer inexpensive card readers for one-time purchases anywhere between $50 - $100. Most of these work with your existing smart devices, such as a smartphone or tablet. Through a simple free application downloaded onto your device through the app store, it will turn your mobile device or iPad into a credit card processing terminal. Making mobile payments a very attractive and easy solution for a small business owner.
Savings
Most merchants, who are not currently using mobile payment solutions, are either getting their customers to make payments by calling in into an office or store over the phone or to pay with cash or cheque. The latter always being an annoyance and hassle for customers in this cashless environment. In regards to the first option, you can save a lot of money on transaction fees because most processing companies offer a much lower processing fee amount on mobile payments, where the card is present and swiped. Compared to card-not-present transactions done through a virtual terminal, where the details are hand keyed. Hand keyed cards can be as high as 3.5% but the same transaction swiped can go down to 2.65%.
Security
No longer is it acceptable to be writing card numbers down on scraps of paper to run when you get back to the office, nor should you feel comfortable calling your card details over the phone to a stranger. You have to ensure security is paramount for both your business and your clients. You will want to use a credit card reader that is EMV capable and compliant with the Payment Card Industry Data Security Standard (PCI DSS). This is a security standard designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Most modern card readers are protected by cryptograms and sophisticated tokenization methods, and also offer two-step verification and end-to-end encryption. This helps protect you and your clients from fraud and unnecessary chargebacks.
Improved customer experience
A common theme with mobile solutions is how easy they are to use. You can use them in a storefront, on a job site, at a trade fair, or even out on the water. It gives both you and the consumer the flexibility on how and where to pay. The easier you make it for the consumer to pay, the easier it is to make the sale. It also gives you other functions and capabilities customers can find useful; such as the customer vault. You can save repeat customers’ details and when they return, you can see exactly what they bought previously and even charge the card on file for them. You can also offer recurring payments for clients, who may have a high ticket value purchase. That means that you can offer payments over a set period of time, and finally, it offers you the ability to offer discounts to your clients, while also allowing you to accept tips from your hopefully satisfied customers. This is another way, how mobile payments can help increase that revenue even more.
If you think this is a good fit for your business, feel free to reach out to us here at Payroc. We would be happy to line up a quick live demo of how the device works and its functions along with offering you a complimentary rate review on your current process.