By putting mobile payment readers to use, small business owners have incredible flexibility when making sales on the go. Rather than worrying about credit card machines, small devices can now process cards via a smartphone or tablet. Square, Intuit, and PayPal all have popular mobile payment options on the market. Here is a look at the different options and pricing models, and what type of businesses benefit most from mobile card readers.
Square's system
Though Square has not succeeded in turning the smartphone into a mobile wallet, the company's credit card readers have made it easy for business owners to expand their store's footprint. The system works by connecting the reader to your phone or tablet's headphone jack. This small device, or "dongle," works the same way a store's credit card reader does, with the only difference being that the transaction interface displays on your mobile device's screen.Square works with Android devices as well as Apple's iPhone and iPad. Transaction fees are a flat 2.75 percent, with balances transferred to your bank account the following day. The convenience is tough to beat, although users do have complaints about the effectiveness of the card reader. Multiple swipes can create unease in customers and waste time.
Intuit GoPayment
Intuit, also responsible for QuickBooks accounting software, has released its GoPayment reader, which allows business owners to take credit card payments on any Android or Apple iOS mobile device. Fees are 2.4 percent plus $0.25 per transaction. For higher-volume businesses, they offer a plan that charges $19.95 monthly with an additional 1.75 percent plus $0.25 per transaction. Intuit GoPayment users rave about the ability of the device to read card information on the first swipe as well as its ability to sync with QuickBooks for best accounting practices.PayPal Here
PayPal's system follows Square's lead in collecting 2.7 percent per transaction while bank transfers take a standard three business days or longer to get the money in your account. Its dongle compares to the one offered by Square with users reporting a slightly higher level of inaccurate swipes than Intuit's GoPayment.Flexibility and ease-of-use
Since mobile payment readers take customer credit card information, the decision is more complicated than which option is most cost-effective. Repeated swipes have a way of unnerving consumers when you have their bank cards in your hands. The dongles that both PayPal and Square use are known for these complications. Typing in a card number, rather than swiping, carries a higher per-transaction fee in every payment app, so factor this in when you are deciding on the right payment system for your business.Small business owners who have opened a small storefront and want to keep costs down benefit the most from mobile payment systems. The proliferation of pop-up stores and mini-malls gives you the opportunity to present your business in unique formats these days, which also makes it possible to test out your ideas and give the public a preview of new products before you launch them on a larger scale. Mobile payment readers are an invaluable resource when you want to make fast sales without complicating your business model.
If you have a relationship with a big bank, mobile payment systems from these institutions may provide you with added flexibility and competitive pricing. Chase Paymentech is one resource to use if you are interested in accepting credit cards in a variety of formats. special offers from Chase Paymentech are also available from The UPS Store.
You have the opportunity to make sales in any setting these days. Mobile payment services offer another excellent tool to use as you grow your business.
