Posted by Sharon Robb on Mon, Apr 19, 2010 @ 03:46 PM
So we touched on the iphone wireless or mobile processing first - with Verifone's PAYware and of course Square . Revisit these pages for the pros and cons of each, where the products and services are at in development, and of course, the costs.
Let's jump to the top of the line then and discuss processing with a wireless or mobile credit card processing terminal - because it's different and these units have been available for some time.
What's the merchant application? Anybody who processes cards regularly, johnny-on-the-spot. You might be a busy contractor - with subs maybe or run a heating and air conditioning or plumbing service, delivery/service business/,taxi, etc. - you get the picture.
One example of a terminal for this purpose is the Nurit 8020 - an upgrade to the Nurit 8000 from Verifone. Keep in mind there are plenty of wireless terminals to choose from - but this one certainly fits many a wireless application (YES, XBS markets these terminals!).
This is a PCI compliant wireless credit card machine that uses the GPRS (General Packet Radio Service) network; a high speed data transfer service available in the US through carriers like T-mobile, AT & T, Cingular, etc. The dependability of the coverage provided by these carriers is improving, though initially it was limited to metropolitan areas.
So what do you get with the wireless credit card machine that you don't get with iPhone processing? an all in one processing solution - mobile, light weight, compact that includes -
- a thermal printer (drop a paper roll in and away you go)- iPhones do not have printers (they can connect to one via blue tooth compatibility but the solution "grows bulky"). A receipt of the transaction can certainly be "emailed".
- an internal pin pad - for pin based debit (fastest growing payment method today....). iPhones cannot process pin based transactions currently.
- Wireless options include GPRS and Wi-Fi (WAN).
- Large, backlit graphical display, 18 key keypad, touch screen and stylus for electronic signature....
So down to the ditty....what's it cost, as it relates to our iPhone processing options?
The terminal can cost up to $650 - less if you buy from the merchant account provider - who often discount the equipment (at least XBS does). I guess it would be fair to compare that to an iPhone or Blackberry cost - $300 and up possible. Of course the terminal cannot be used as a phone.
You must pay for the monthy wireless connection - $15-$20/month should cover it. If you didn't know - you pay the wireless fee PER terminal. In the case of the iPhone remember - it would be typical to pay for your phone service AND a payment gateway ($10-$20/month). The wireless credit card terminal sends data direct to the Visa/MasterCard network via the GPRS (remember AT & T, T-mobile etc. wireless provider) - NO payment gateway required - no payment gateway fee.
The wireless service charges a transaction fee - .10/transaction approximately. This transaction fee is on top of the transaction fee you owe the payment processor - you do need a merchant account with this terminal. Merchant account fees are dependent on who you do business with - we recommend us.
Time to create a comparison chart I think. I'm on it - next post. In the meantime - for the true, mobile merchant with a host of "hired hands" delivering goods and services that require payment collection at the point of delivery - a wireless credit card processing terminal is a safe bet. It's a swiped, real-time authorized transaction with card present low rates - with a receipt at the ready for your customer. Professional, secure, money in the bank....you can't beat that.
Posted by Sharon Robb on Tue, Feb 23, 2010 @ 12:06 PM
All of the December 2009 and January 2010 credit card processing industry rags are touting mobile payments as "the thing" in 2010. Growth, applications, and opportunities are arriving rapid fire - and so we're going to try help our merchants sort it all out (I'm dancing as fast as I can).
So....let's launch with the newest gadgetry that's creating a great deal of buzz...Square.
Jack Dorsey, founder of twitter (very cool we agree) -announced a new venture - development of mobile payment technology compatible with Apple's iPhone called Square. The hardware and service is in "beta" mode (just testing so chill folks) but it sure has raised a ruckus of attention in the online community.
The ruckus is two fold -
One is WOW that's mobility in a small convenient package. The Square, is little, plugs directly into the IPhone, and allows the iPhone user to accept a credit card payment from anyone, anywhere - swiped (lower risk).
Two - it comes with the merchant account with a simple, flat rate transaction fee (no rates on the website so we only have rumors and tweets for info). Excuse me? No application, no underwriting? Fascinating.
Jeff Green, Editor-in-Chief of Payments Source - talks about the device and service in his Editors Letter in the January/February 2010 issue. It's exciting and Dorsey's getting a lot of publicity, but things are all quite vague when it comes to the payments processing and Green notes in his letter that perhaps Square will act as an payments aggregator, such as PayPal, running all of the transactions through their own merchant account. All still up in the air - but a quick gander at the site turns up a few vital points for our small business friends always looking to reduce costs we know -
- Square touts No contracts - I printed 17 pages worth of Square "Service Agreements and Payment Services Agreements" right off the site. Most of us don't need to check with an attorney to know what that means - legal agreement = contract. There might not be a length of service contract but anybody taking money from and delivering to, bank accounts electronically is working on a contract - has to be. In this case apparently there may even be two - one with square and if they deem it so, one directly with the payment processor.
The Square Service Agreement -
- No warranty - this one's pretty clear - at this poing in time Square does not guarantee it's service - for availability, dependability or risk. No mention of PCI DSS.
- Communications - electronic only currently - no matter what your question or issue - no calling'em.
The Payment Services Agreement-
- Reserves - "Reasonably determined" - new accounts have to have one (I'm guessing that's everybody) equal to 14 days of sales activity plus pending disputes. The reserve could be raised or removed based on activity, credit reviews etc. If you don't keep sufficient funds in the reserve it may get funded from your Square Account, i.e. credit card processing sales.
- Transaction limits - Square accounts have transaction limits - no idea what these are yet - stay tuned.
- You need to provide a written receipt to your customers for any transaction over $15 - you can give the customer the option to decline it of course and you can offer an email receipt, but not in lieu of.
- Availability of Funds - doesn't say when you get your money - 2 days? 3? 5? just that Square can limit your access to your Square account funds if they feel they are at financial risk or other agreement parameters are in dispute.
- Fees - doesn't say.
Ok - so remember Square is in Beta - I'm sure they'll work out these kinks but at quick glance we can't help but think these current questions raise some real issues for businesses. The application does seem fun for P2P (person to person) payments - think garage sales, girl scout cookies, PTA fundraisers, etc. or maybe the handyman, lawn guy, tupperware and avon lady, that doesn't do enough processing to warrant their own merchant account but wants to offer the convenience of credit card sales. That's cool.
The term small business is pretty broad though. Most merchants we service need electronic payments professionals to navigate POS equipment, funding and value added services above and beyond the "merchant account".
Today there are a number of overwhelming factors that impact a merchant's ability to process credit cards securely AND profitably. Merchant account agreements are indeed complex and typically include 8-12 types of fees depending on the type of card used in the sale as well as the method and equipment used in the processing. Cash flow, prompt funding, fees and rates, PCI DSS are essentials for processing success and a casual approach isn't recommended.
We'll be hearing more about Square for sure - I'll keep you posted - in the mean time - think payments professional to answer your processing questions about rates, equipment and "going mobile with your business".
Posted by Sharon Robb on Mon, Nov 23, 2009 @ 06:22 AM
Fascinating news in this mornings Observer - Charlotte's Salvation Army is testing credit card acceptance - Visa, MasterCard and American Express - at a number of red kettles this Christmas season throughout the city.
Jim Price - the agency's director, points out that folks appear to be carrying less cash than in years past (pretty observant) and other payment options seem to be called for.
Apparently - the idea has been tested in a Salvation Army chapter in Dallas/Fort Worth and guess what? Credit card donors gave an average of $14 at the Kettle, compared to the average $2 given by cash donors.
What's interesting about this picture?
- It is textbook credit card processing benefits - i.e. using credit cards can increase the amount of your average ticket or sale or in this case donation.
- Using credit cards makes tracking sales easier.
- The salvation army is a smart merchant, combining what we know about trends in credit card use and cash on hand.
- Mobile or wireless credit card processing is easy!
The Salvation Army is not rated by Charities Navigator because of the agency's religious mission and thus a lack of reporting requirements -but sure has been around doing good works for a long time.
Charlotte's Salvation Army Chapter is working to serve more families than ever before, like all of our charitable organizations this year. Check out the agencies mission and give'em a call if you have the faith in their missions and outreach.
We can certainly say this about the organization - their implementation of a program to accept cashless transactions or credit card payments-donations is smart, cost effective and likely to increase cash flow.
I like that in my charities.