Is Your Wireless Business Ready to Accept Credit Cards?

Article Written By: isabelwalsh

Merchant services providers have now created numerous technologies to help any kind of enterprise process for credit card payments. Today, all kinds of businesses can utilize wireless technology to accept credit card purchases.

Generally speaking, there are three basic types of wireless processing services that you can employ for your business.

Wireless Swipe Terminals

These operate like mobile versions of the retail swipe terminals that are widely used in traditional storefronts. The customer s credit card is run through a portable swipe terminal which is either a stand-alone device or an attachment to a laptop computer or cell phone. The data is then transmitted to the processing hub digitally, and authentication is given in just a few seconds. This is the most user-friendly wireless processing method, but it usually requires an investment in hardware.

Point-of-Sale Software

This can be installed on your laptop computer and implemented using a wired Internet connection, a cellular air card, or a WiFi network. Instead of a credit card being swiped directly, the card number and expiration information are entered into the computer and then sent to the processing entity electronically. This method is preferred when you have a consistent Internet connection but may not always operate in areas where the GPRS network is available. In addition, POS software frequently comes with additional programs that can work in conjunction with accounting and inventory systems.

Interactive Voice Response Systems

This can be described as the minimalist approach to wireless processing because it requires no hardware or software. All you have to do is punch in the credit card number into any touch tone phone and follow the subsequent voice prompts. The merchant services provider automatically processes the data and issues an audible authentication response. IVR systems require the least amount of training for your employees.

Once you have decided on the type of wireless merchant account, you must then compare different packages and pricing structures to see which one best suits the needs of your business. To do this effectively, you need to understand how merchant services providers make their money.

Every merchant account comes with what is known as a discount rate. This is the percentage of each transaction that is paid to the merchant services provider as its fee for processing a credit card payment. The discount rate usually ranges between 1% and 5%.

In addition, most merchant accounts also charge flat fees every time you process a credit card purchase. This expense is known as a transaction fee and can vary from a few cents up to a few dollars. This cost is the same no matter how big or small the charged amount is.

The challenge for you as a business owner is to find a merchant account which has the most cost-effective rate structure for your transaction patterns. For instance, if you operate an enterprise which has a relatively high volume of transactions of smaller amounts (like a crafts vendor or a souvenir seller), then you should search for an account with the lowest possible transaction fees. On the other hand, if most of your business transactions involve larger dollar amounts but you only conduct a handful each day (as with a home repairman or contractor), then you should opt for a plan with a low discount rate.

It may take some research, but you can find a wireless merchant account that is ideal for your business type. And once the system is functioning and you begin processing customers credit card payments, you ll wonder how you ever survived without a merchant account!

About the Author

Isabel Walsh - Read more about business that accept credit cards.

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