Here’s Everything You Need to Know about Mobile Payment Processing

swiping card on phone

When it comes to credit card processing, the future really is mobile. According to a recent Juniper Research study, by 2023, mobile point of sale systems (mPOS) will account for close to a quarter of all POS transactions globally. That’s an estimated 87 BILLION transactions annually.

It makes sense. From arts and crafts vendors and food services to mobile businesses that need to make payments on the go, mobile point of sale systems are the way to go. Even brick and mortar stores and traditional restaurants are adopting mPOS as a way to make their business run smoother and more efficiently.

So, you’re a small business owner setting up shop and you want to accept payments on your phone and/or your tablet. Now what? Here are a few key points you need to know about mobile processing.

  1. You need to have internet availability.

If your business is operating in a remote area where there’s no wifi or cellular reception (or even an indoor space where getting a signal is challenging), a mPOS isn’t going to be the best option for you. In order to process credit card payments, you need to have a reliable internet connection. Whether it involves upgrading your current mobile plan or purchasing internet access from the venue where you’ll be making sales, these are costs that you need to factor into your business.

  1. You’ll need the right hardware.

Whether you’re going with a traditional point of sale system or mobile, you’re going to have to invest in the correct hardware. You’ll need to check to make sure the app you want to use is only available on iOS or whether it’s also available on Android, and then figure out what device best fits your needs and budget.

Next, you’ll want to look into a card reader. While most are universal, there are some card readers that need a Lightning connection for iOS devices and iPhone 7 and newer. You can get an adapter to bridge this gap, but if you want to keep things simple, a better option might be to go with a Bluetooth-enabled reader instead.

Lastly, are you looking for a mPOS that supports a receipt printer or printer driven cash drawer? What about a barcode scanner? If you’re looking for these features you’ll have to purchase additional hardware.

  1. Processing times matter.

Once a customer makes a payment with their credit card, you’ll want that money in the bank as soon as possible. Although times vary based on the processor, most should be able to deposit money into your account within 2 business days. Some processing companies even offer next day deposits, so it’s worth doing your research.

  1. Look for extra features.

Some mPOS and credit card readers offer extra features that can be really beneficial to your business such as accounting integration (Quickbooks or Xero), invoicing, a customer database (that saves phone numbers and other info) and even inventory management options. Figure out what you think you’ll need and choose accordingly.

  1. Know what’s important to you and do your research.

As a business owner, you know what’s most important to you. Do your research to see what kind of software each card processor comes with. What features do you need most? What kind of card reader is compatible and how much does all of this cost? Only you can answer these questions. Make a list of every feature that you’d like to have (but maybe isn’t 100% necessary) and go from there.

Posted on Tuesday, October 9th, 2018