Apple’s iPhone put computing processing capabilities in the palm of your hands. Now, entrepreneurial developers are bringing small business capabilities to our mobile devices. Mobile credit card processing is the newest trend in marketing, and iPhone users have no shortage of devices, apps and providers to consider when accepting credit card payments. From booming start-ups processing billions of dollars to experienced merchants with advice and support, entrepreneurs with iPhones have plenty to consider.
Consider the pros and cons of mobile credit card processors as you plan your next on-the-go business opportunity.
In a sea of start-ups with shiny logos, Verifone feels somewhat like an old dog. The Payment Solution provider proved it still has its innovation legs with the release of the PAYware Mobile system, however, and the result is a sturdy, effective payment processor. The current iPhone version of the PAYware Mobile card reader hooks into the charging port and cradles the iPhone. The iPhone can process transaction and provide receipts, complete with signatures.
Available through conventional processing providers such as Capital Processing Network, the Verifone Paymore Mobile card reader complies with PA-DSS requirements as set by the Payment Card Industry (PCI).
Vendors looking to use the hottest processing product will look no further than Square. One of the first to develop a card reader designed for the iPhone, Square recently announced on Twitter that it’s processing $1 billion in payments annually. The small, free device plugs into the head phone jack, and users can download the free Square Register app to start accepting credit cards. Square’s simplicity is especially appealing to small businesses. Users choose one of two payment options: a flat 2.75% transaction fee or a $275 monthly fee that enables 21,000 transactions under $400.
Square was PCMag.com’s Editors’ Choice for mobile credit card readers. Vendors looking to add to the $10 billion annual volume can get more information at Squareup.com.
Mobile credit card methods is convenient for sales, but it creates a new hurdle when it comes to accounting. The Intuit GoPayment system aims to reduce accounting stress by automatically registering transactions with Quickbooks — Intuit’s popular small business accounting software. GoPayment is similar to Square. Users connect a plug-in card reader and download Intuit’s corresponding Go Payment app to operate. Pricing varies slightly from squares model, along with a 2.75% per transaction option, Intuit also offers a reduced 1.75% rate for users that pay $12.95 per month. Businesses with high transaction volume can benefit from the hybrid model.
Streamlined accounting makes Intuit’s GoPayment the best mobile processing option for small businesses that use Quickbooks. Visit Gopayment.com for more information.
Square set the standard, but competitors have emerged that claim to offer better, less expensive versions of the same service. Once such company is PayAnywhere, which offers a free card reader, simple user interface and fixed transaction rate. Sound familiar? PayAnywhere uses a classic tactic to gain business, however: a cheaper rate. PayAnywhere challenges Square’s fixed 2.75% transaction rate with its own 2.69% rate. If all things are equal, an extra .06% per transaction may be enough to sway vendors, according to the PayAnywhere website.
PayAnywhere also automatically calculates taxes based on location, offers 24/7 customer service and complies with PCI standards to promote security.