In the world of technology, there is always something new to learn. Businesses have always been at the forefront of technology, using it as a way to keep their profits flowing.
During the regression caused by COVID, technology was more important than ever for sales. For ecommerce sites, profits worldwide jumped 4% to a staggering 26.7 trillion dollars.
With many smaller businesses struggling to stay afloat, a small change such as adding the ability to use a phone to accept credit card payments can inspire significant increases in your customer base.
Especially for those who are just starting a business but opt not to have a brick-and-mortar shop, such as a food truck business, paying over the phone is the perfect way to go. But before you start with something like that, it’s important to know how it works so that you can best implement it into your business’s daily routine.
What You Will Need
Choosing the right credit card processing software is the first part of setting up mobile payment processing. When you sign up with the company, you are normally offered a variety of plans to choose from that depend upon the information you give them, such as your tax ID and company status.
The payment plans you can choose vary, but if you are a small business that’s just starting out (and might make only a few thousand dollars in those first months) it’s likely best that you go with a flat rate plan.
The flat rate plan charges you a percentage of each payment you receive, usually around 2.75 percent. There is then also a transaction fee each time a credit card payment occurs, usually of around $0.15 per transaction.
After the application process, you will receive the appropriate tools (bank account, software, hardware) to start accepting a credit card, process that payment, and receive funds. The wait after you submit your application is usually a couple of business days.
To receive payments through your phone, a mobile credit card reader can be used (this is covered below) which are simple to handle and can be used on most smartphones that have either a headphone jack or Bluetooth capabilities.
Understanding Mobile POS
Most credit card processing companies have an app you can use on your phone, from where cards can be processed and credit card payments accepted.
mPOS (mobile point of sales), which have become increasingly popular over the years, are an important part of business in the digital age. An mPOS is basically a digital cash register, allowing you to physically scan cards with your device and receive payments over the credit card processor’s app. For a customer, it’s as simple as swiping their credit card through the credit card reader.
Credit Card Readers and Direct Sales
It’s important to pick out the right credit card reader for your mobile business. Some payment companies offer credit card readers, but you have the option to get your own, too. Credit card readers can be found in any brick and mortar business, but if you are planning on using your phone for business, you need a credit card reader that has two distinct features:
- It needs to be able to work on a tablet, handheld device, or smartphone.
- It should be cloud-based so all information is backed up automatically and stored online.
It’s recommended that you get a credit card reader that is versatile and fits your budget, especially when you are first starting out. Try to get a credit card reader that works well as both a countertop system and a traveling system for events.
These credit card readers should be able to simply plug into your phone or connect with Bluetooth. Having a credit card reader that works for both mobile and local businesses gives you more flexibility and ensures you don’t need to buy multiple readers if you relocate, expand, or switch up your daily operations.
Making Payments over the Phone
It is also possible to make payments over your phone without a card, which is great for businesses that work remotely or are delivery-based. This process requires a virtual terminal – a web-based application that allows you to process electronic payments by telephone, mail order, or fax.
It’s a piece of software that allows you as the business owner to input the credit card information manually, without needing a physical card. Virtual terminals, along with most credit card processors, are accessed with a simple connection to the internet.
How to Track Your Financial Progress
mPOS systems give you an extensive look at your sales because all of your transaction data will automatically be stored in the mPOS system’s application. This will allow you to get a comprehensive overview of your finances without you having to deal with keeping the paperwork around.
The analytics of your mPOS will allow you to strategize how you should do business. An mPOS also collects your customer’s data, allowing you to have access to such things as their email addresses.
The Convenience of Using Your Phone
Accepting credit card payments on your phone is growing in popularity because it provides the perfect opportunity for any small business to start making sales as soon as possible. Regardless of where or what business you run, using your phone for payments makes for a simple process that is easy for both you and your customers to use.
The best applications are not only easy to use but store data, too, so you can see how your business is doing in real-time. In this data-driven world, it is important to get a leg up on the competition by understanding the progress of your sales, allowing you to optimize your business operations.
Payment companies and the mPOS apps they provide are there for you because your business is their business. Payment companies are easy to reach and give you all the tools you need. All you have to do is provide internet access for the mPOS system, and you are ready to start making sales.