Small Businesses Implementing Mobile Point of Sales
In today’s business we strive for convenience, options, and customer satisfaction. With small businesses we are sometimes limited in our technology. As larger corporations have millions of dollars backing their ideas, smaller businesses must cut corners and find low cost solutions. For those in a market where point of sales are concerned, the low cost solution for high tech payment processing has arrived. With the innovations made by iPhone and the Android market, small businesses have more options than ever to create a business that is seamless. Now with the integration of mobile card readers, even the smallest business owner can take credit card payments into the future.
A mobile card reader is an attachment for the iPhone and Android powered phones. When used with the corresponding app, it allows customers to swipe their credit cards on the phone to make payments for products or services. The app then tracks the sales and e-mails a receipt to the customer instantly. This makes it easy to take advantage of impulse buying when the feeling is at its peak. With the ease of just swiping and signing, the sales are easily closed.
With the arrival of several companies offering mobile card readers, their main target is small business owners. Whether you are a landscaper, pizza maker, or even a used item reseller, taking credit card payments are easier than ever. Here is a breakdown of the two leaders who offer free mobile card readers when you sign up.
Square is a new startup company, which has taken the mobile payment processing business by storm. Their innovative stamp sized card reader easily attaches to the phone and allows for quick payments. They offer a free card reader when you sign up, allowing small businesses to get started with no initial costs.
Unlike other companies offering mobile payments, their innovation includes their fees. There is no charge for their app and their fee is set at 2.75% of all swiped payments and 3.5% + .35¢ of all charges entered manually. There are no monthly maintenance fees and no addition fees for high volumes of sales.
Like Square, Intuit offers their card readers free with signup. However, their fees are set in two groups. For monthly sales up to $1,000, their fees are 2.70% for card swipes and 3.70% for manually entered payments. For monthly sales exceeding $1,000 their fees are dropped to 1.70% for card swipes and 2.70% for manually entered payments. However, it also includes a $12.95 monthly service charge.
The use of mobile payment processing isn’t new to the sales world; however, it has never been easier for the small business owners to utilize the convenience and technology until now. The system has been proven useful earlier this year when a Girl Scout troop in Silicon Valley used the mobile payment service to sell around 400 boxes of cookies to Facebook’s headquarters. Later this year this technology will be seen as The Salvation Army uses Square’s mobile payment dongle on Android phones to accept donations with their bell ringers. If the test proves successful in the limited launch, bell ringers of the future will trade their red buckets for an Android powered phone.
Author Scott Parker is a financial consultant and content contributor to various websites, including Money Choices a comparison site with credit card reviews and great side-by-side rates and fees for many popular card companies.