When you're doing business out and about, you need to have the capability to take credit card payments on the go. If you don't, the next guy will. It seems simple enough, but there are a few things to consider when choosing the right solution for your business. Stay competitive, and think about the following when comparing credit card readers.
Swipe or Chip?
It's important that you have access to a credit card reader that is flexible and can do both. Most, but not all cards have the chip. So, at least for a little while longer, your card reader will need to do double duty.
Competitive Processing Fees
The competition is stiff here, and you should have no trouble finding and using a card reader attached to a fairly low processing fee. They may charge a percentage of your sale, and a per transaction fee. Some only charge one or the other.
You will generally pay more on transactions where the card number is manually entered as opposed to swiping or inserting the chip. This can vary quite a bit, so shop around and see where you can get the best fee, but check into other features as well.
This is a type of consumer fraud. It happens when a customer makes an online purchase on their own card, and then deny the purchase later, causing you a chargeback, and a loss of revenue. The best credit card reader providers will offer chargeback protection in cases where this is evident. Examine what type of protection they offer and see how it works.
The easiest way to transfer payments into your bank account is to have a credit card processing company that automatically deposits sales revenue in to your bank account. You just go about your business, and the money is transferred without any effort on your part.
Check to see what the turnaround time is on deposits. Is it same day, one day, or 3 – 5 business days? Sometimes, time is of the essence, and turnaround time for bank deposits can make a real difference.
Is the Security Protocol Sufficient?
Security is a big issue when it comes to accepting credit card payments on a smartphone. Who hasn't felt a bit nervous when the hot dog vendor swipes your credit card? You think "Surely this is OK?"
All credit card readers should use PCI compliant security measures in processing payments and moving money around. It's industry standard now, but double check to make sure that any prospective company you look into uses it.
Is the Card Reader Enough?
Many credit card readers will offer a point of sale app for your smartphone that will manage sales numbers and analytics for you. Is this something that you're looking for?
If so, look at the different platforms, and see how they fit your needs. If not, see how you can simplify things. Sometimes, you can get too many processes going for the same thing, and it works against you instead of for you.
Take these points into consideration when you're shopping for a smartphone credit card reader. Make the right decision based on your needs.