I’m a consultant, and not surprisingly, having the ability to process credit cards anywhere is absolutely beneficial to my business, especially when our staff is able to capture funds on their BlackBerry or iPhone while in the field. For many of you, whether you are an Arts & Crafts Vendor, Plumber, Livery Driver, or Caterer, you likely have very similar needs.

If your search for a mobile processing solution is making you a bit cross-eyed, then I have some information that might help you find some clarity. For some of you who read this, you can be processing credit cards on your phone in a matter of moments, without so much as having to complete a form or making a phone call.

How it Works

One aspect of selecting an appropriate solution is by first understanding the concept that actually allows us to process a credit card on our mobile phones. When you make an online purchase on your PC via your favorite browser, chances are that it’s secure and encrypted through what’s called “SSL” (Secured Socket Layer). When your credit card information is processed, it’s done in such a way that outside parties can’t intercept the information. This “SSL” feature is also used on smart-phones as well your PC.

Also, much like your PC, when your credit card information is entered for a secured transaction, this request gets routed to a “Payment Gateway” that also supports “SSL.” The purpose of this gateway is simply to route your credit card request to the companies merchant account provider that you are doing business with. As part of this process, the gateway makes sure the card is valid, before approving the transaction and charging your card. As your smart-phone already has a connection to the internet, and it already supports SSL, the real magic is done with the gateway.

Basically, the transaction goes something like this:

Credit Card Information is entered on either your PC, or smart-phone application
Once Entered, the payment gateway validates the request and passes the information to the companys Merchant Account Provider
Once settled, the Merchant Account Processor makes a deposit in the companies bank account.
Merchant Accounts & Authorize.Net

A Merchant Account Provider is the party that is responsible for the validity of the transaction and ultimately depositing the funds into the company bank account. If you currently accept credit cards, and you do so via a credit card terminal, the Merchant Account provider is basically the company on the other end of your line.

The most popular payment gateway is Authorize.Net and it’s for good reason. Authorize.Net interfaces not only with virtually every Merchant Account Provider, but is also the most popular solution for web shopping cart integration. Add to that, you can process cards directly from their web application which is awesome if you want to take phone orders. And finally, it’s the most widely supported payment gateway for mobile phone solutions.

PayPal Web Payments Pro

Many Mobile Phone Credit Card Processing solutions also support PayPals “Web Payments Pro” product. Don’t confuse this with your standard PayPal Service. Expect to pay about $30 per month for the same functionality as a traditional Merchant Account and Authorize.Net payment gateway. While it may be more expensive, you’ll still find mobile phone applications that support “Web Payments Pro” as an additional gateway.

Proprietary Gateways with Merchant Accounts

More often than not, most any ‘FREE’ mobile phone credit card processing application with be a bundle of a Merchant Account with a Proprietary Gateway. Basically, offerings like this will promote a FREE mobile phone credit card processing application, but sadly, it will only work with their own payment gateway. The problem is, that if your needs change, and you need to integrate a payment system with your website, or perhaps take phone orders, you might find yourself paying more in the long run.

At any rate, if you are considering a Free mobile application with proprietary gateway, just make sure to ask them about converting to a different plan later.

By Timothy Sweezey

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The most important of all merchant card services is the ability to accept credit and debit card payments. For a business it is very important to obtain a merchant account because in order to be successful the business needs to offer various forms of payment options.

The services that a business acquires when obtaining an account should be professional, efficient and cost effective. To make sure that your business reaches its maximum potential it is vital to explore all of the options available and select the exact services that will make your business successful.

First you must understand exactly what type of business you run and are planning on becoming in the future. The three main types of merchant accounts are traditional (storefront), wireless (vial mail and telephone), and virtual (via the internet). Your business may be one of these or a combination of any or all of the three.

When selecting which merchant card services that your company will utilize it is important have a clear idea of what is available. Some of the more common available services are:

• Credit Card Processing
• Debit/ATM Card Processing
• eCheck Processing
• Real Time E-Commerce
• Check Guarantee
• Programming Software
• Web Site Shopping Cart
• Check Verification
• Terminals (with or without printers)

Again depending on which type of company you are and which services you wish to offer your business will decided on varying options within the services. There are several types of terminals and software programs designed for specific transactions. When deciding which types of cards to accept it is common practice to accept VISA and MasterCard at the very least.

The beauty of merchant card services is that they offer your business the ability to accept multiple forms of payment all while the company who you have your merchant account with does the processing. Just saving your company this headache is very efficient, but include in that the profit that your business will see from the increased purchase options and you can see why it is so vital to have a merchant account.

It is very easy to get started. Most companies offer online applications that can be filled out quickly and effortlessly. Once you have determined which company offers the best options for your business and completed your application the company should respond to your request quickly and with a variety of options that are viable for your business. At this point you have to ask any questions that you may have so that you can ensure your companies success.

A common question asked is why does my business need these services? Studies have shown that consumers are spending more with credit cards, debit/ATM cards and checks each year. That fact along with the ease of use for processing such transactions makes the merchant account an excellent choice for the savvy businessman.

Determining what merchant card services are viable for your business can make or break you. A business wants to provide their customers with the most up to date technology while keeping their profits at a high. Pick the right services for your business and you will be sure to succeed.

By Brantley Graham

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