So, you’ve discovered the fact that smartphone credit card payment systems make it easier to process payments from any location. The next step is to decide which system is right for you. Most smartphones can’t process the magnetic strip on a credit card, so the information still has to be processed through a third party for verification.
There are different smartphone credit card payment systems with different features and different price ranges and payment methods. Some charge a fee per transaction and others charge a flat fee per month. Each system that allows you to process credit card transactions via a smartphone has its advantages and disadvantages.
Sizing up the competition
You will need an app to get started. There are hundreds to choose from, but iPhones have a more diverse selection. Only a few companies link their app to a specific credit card swiping device since the technology is still relatively new. You will need the app that’s related to the card reader you choose in order to get started.
The next step is to compare POS software, which would be the companies that provide the actual card swiping devices.
Note:
Some apps allow you to enter credit card numbers manually without a device, but this can raise security concerns and increases the chances of human error.
Square
Square is the most popular of the card readers currently on the market. The main reason is because of its size. It looks like an over-sized square flash drive at first glance. The device plugs into the audio jack of your smartphone and is accepted by most Androids and iPhones. Square takes 2.75 percent of each card swipe and 3.5 percent plus 15 cents for each non-swipe transaction. The app is free and so is the device, but this is true of most card processing services.
The pros include Square’s sleek, easy to use functionality, a simple pricing plan, and the fact that funds go directly into your account and are easily available. However, average discount rates are high, and transactions cannot be voided once initiated
Intuit GoPayment
Intuit GoPayment is almost the same as Square, except for two major differences: Intuit GoPayment works with BlackBerry devices, in addition to Apple and Android products. It’s also an easy to use device and the app and card reader are free. Additionally, it gives larger businesses the option of a monthly plan with reduced transaction fees, and there is no contract required.
PAYware Mobile
PAYware Mobile is a system from VeriFone, the leading manufacturer of electronic payment systems. This service is set to go international, a plus for businesses that operate between the United States and Canada on a regular basis. The original app and device integrate with your existing merchant accounts. An updated service was recently launched that supports multiple card processing devices with a bar code scanner and PIN. The device fits around your phone and looks like a traditional card swiper you’d find in a store when it’s attached to your phone.
ROAMpay
ROAMpay is probably the most compatible of the card processing systems. It is compatible with Apple, Android, and BlackBerry. It can also be used with flip phones. Pricing varies, but once you sign up, you get exact pricing details for your specific business requirements. ROAMpay emphasizes security with its product, offering three times the security features of other similar devices.
Merchants who use smartphone credit card payment systems should be aware that some customers will insist on traditional payment methods and others will hesitate for safety reasons. These are very real concerns that shouldn’t be ignored. Smartphone credit card payment systems don’t have to replace how you process payments. Instead, it’s just another payment option. Regardless of how much technology advances, customer service is still at the heart of any business transaction.