Mobile Payments Mobile Payment Processing for the Small Business If your business would benefit from accepting credit cards on the go, read this article to learn more about mobile payment solutions. First of all, we will not be addressing mobile payments that sync with your POS System. If your business is large enough to utilize a POS System and may need mobile payments such as a pizza shop or a bar, you will want a mobile payments system that can sync with your POS System and you can contact us for more details about which solution might be right for your business. In this article we will cover simple mobile payments providers that provide an easy way for you to process transactions on your mobile device. How does “Square Mobile” work? I couldn’t begin any article about mobile payments without mentioning square mobile since they have done a great deal to create awareness of this service through their marketing campaigns. However, Square has several very important issues that I should mention. First they have practically no customer service. In an effort to provide the cheapest service, they overshot their goal and literally provide no way to handle serious issues on the spot. Payment processing has become much simpler over the past few years, but not providing phone support is just not realistic. There will be times when charge backs, refunds or technical issues will require some help and you don’t want your business hung out to dry with no support. The other major issue with square and the reason we do not offer their service to our clients is that they hold funds based on a computer algorithm. In other words, if you run several transactions in one day, they may decide that this could be a potential risk and simply hold your funds for 10 or even 30 days while they decide if and when you should get your money. The mobile processing partners we use analyze the risk of an account up front and decide to provide mobile payment processing to that client which means your funds are not held. Square on the other hand automatically approves everyone and then uses a computer formula to monitor their risk as they go. Many small business owners have found this practice deceptive and very inconvenient. It is important to understand that in Mobile Processing, unlike standard credit card processing, the price is not as important because your volume is lower. So, for instance, if you process $500 per month at flea markets and places like this, the difference between a charge of 2.69% and 3.5% in fees is $4.05 per month. I point this out because square bases its marketing on the fact that it is the cheapest and while this may be true in some cases how much is service worth to your business when you are about to lose a $200 sale, but can’t get in contact with anyone? Obviously it is worth $4.00 per month and that is usually the amount of savings that square offers over other retailers. If you are going to process $1,000 or more per month, you would usually be better off with a standard merchant processing account because although these accounts have monthly fees, there per transaction fees are significantly lower. If you are interested in receiving a quote on our mobile payments solution or if you would like some help deciding which solution is right for your business, please contact us or visit us on the web @ platinumplusmerchantservices
Posted on: Mon, 08 Jul 2013 00:59:17 +0000
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