Mobile Card Readers: The Payment Option of the Future?

Mobile Card Readers: The Payment Option of the Future?

Businesses have evolved considerably over the last decade. The most interesting innovation to hit the world of business has been smartphone card readers. These tiny card scanners are attached to the base of the smartphone or tablet through a USB port and they work just as well as a large card scanner. The biggest impact of these mobile card scanners has been on small businesses. It used to be that small businesses like food trucks and farmers at markets had no other option but cash payments. It was not possible to set up traditional POS software and machines at temporary outdoor locations and businesses frequently lost money as they had to turn away customers who offered only credit cards. Now, that is outdated. It is common to find small merchants using miniaturized credit card terminals on their smartphones to bill sales and then send wireless signals to local portable printers to print customer receipts. No customer is turned away and this has directly increased profits for small retailers

For The Small Business Owner

Website Howstuffworks stated that vendors like Shopify were the market leaders as they had more than a million customers already using the e-card readers through tablets or smartphones. All the customer had to do was purchase the e-card reader through vendor and they were good to go. These popular readers were compatible with almost every smartphone or tablet on the market and some vendors even offered the device and the app free. However, it is not as simple as it seems. Even though the card readers are useful and effective, not all of them are the same. In fact, the FTC recently issued a report regarding mobile card readers. Although there are no direct threats from these devices, the FTC urges caution and recommends that you buy the device from a reputable dealer, states Bizjournals. As a small business owner, you have to choose the right option for your particular needs. To help you out, we’ve listed a few factors that will help you make a decision.

PayPal unveils PayPal Here

Fees – Almost every vendor will charge you fees for their card reader. However, some charge upfront while others charge per transaction. For example, some vendors provide the card reader and the app free and charge a per transaction fee. However, other vendors charge fees per swipe or per transaction along with a key-in transaction fee. Ideally, fees may range from 2.7% to about 4% per annum. Before you sign on, make sure you check exactly how much the fees will cost you per month.

Accepted cards- Traditionally, most credit cards are accepted but mobile card readers may only accept a few card varieties. No matter which card reader you use, make sure the reader can scan and accept all major credit cards like American Express, Discover, MasterCard, etc.

Features – Most card readers also offer unique features that make them very useful for small business owners. For example, when a sale is processed, the company provides customized receipts for customer, email receipts, customer information sharing, GPS location reporting, Electronic signature on tablets, return / refund/ credit options, etc. for all card readers. Most card readers also offer these features and they are quite useful.

Encryption – Data security is paramount for all credit card transactions and thankfully, the e-card readers are not different. When you use the e-card reader, the vendor will make sure that the reader is PCI-compliant and covered with PCI-DSS coverage. To ensure optimum protection, the cards are covered with end-to-end encryption (E2EE) and tokenization to protect customer data and to ensure customer confidence.

Transaction speeds- Not many people will tell you this, but transaction speeds are important states Twcnews. With a traditional card reader, the machine will run on a broadband or wireless connection that was set up only for transactions. As a result, most payments clear quickly, but problems do happen. Card readers on the other hand run on a wireless network that routes through your phone. A problem in the connection can hold up the entire transaction and even negate the entire sale. As a result, it would be a good idea to read a few reviews about the products and verify just how fast the card reader actually is. The good news is that almost all readers are quite fast and they very rarely create problems.

For anyone considering a mobile card reader, it would be a good idea to shop around and find a reputable vendor recommends Ware-Everpay. However, if you already have a POS-enabled website, it would be great to buy your card reader from the same vendor. You not only get a great deal, but you also know that the smart card reader will work with your website POS as well.

Evan Varsamis is an Entrepreneur, Founder / CEO at Gadget Flow Inc, Investor and Marketing Advisor at Qrator Ltd and Contributor at Forbes, Inc, Huffington Post and American Express Essentials.
Join the Discussion

You Might Also Like

LandingZone MacBook Pro Docking Station includes 15 additional ports and connections

LandingZone MacBook Pro Docking Station includes 15 additional ports and connections

Introducing the LandingZone MacBook Pro Docking Station, a workspace device that incorporates 15 ports and even supports 4 external monitors—all within a compact, desk-friendly form. Designed specifically for the 14″ and 16″ M1 MacBook Pro, it sits pretty on your..
Envision Glasses use AI to help people with visual impairments with daily routines

Envision Glasses use AI to help people with visual impairments with daily routines

Using the power of artificial intelligence, Envision Glasses have arrived to assist those who have visual impairments as they navigate their daily routines. Today we’re digging into what they are and how they help those who need them. Let’s get..
Top board games of the week: Kalymba RPG, Kabuto Sumo Total Mayhem, Battlecrest, and more

Top board games of the week: Kalymba RPG, Kabuto Sumo Total Mayhem, Battlecrest, and more

We’re back with one of our favorite weekly lists of—drumroll please—top board games! That’s right, if you’re looking for a new round of tabletop gameplay, this one is for you. So what’s good to play with friends and family this..
Sticky notes meet the digital age with these physical QR code stickers

Sticky notes meet the digital age with these physical QR code stickers

Get your digital notes and reminders under control with the Keer digital sticky notes. Just place these physical QR stickers around your home or office for quick links to all the information you need. Your home and office are full..
Best office gadgets for small teams, startups & small businesses

Best office gadgets for small teams, startups & small businesses

Whether you run a vegan bakery or a company that builds AI software, you’re looking for products that can help you and your team serve your clients’ needs better. Well, we did the hard work for you and rounded up..
Weekend Digest: The ultimate Father’s Day gift guide for the superhero of your life

Weekend Digest: The ultimate Father’s Day gift guide for the superhero of your life

Father’s Day is just around the corner, and we know the drill. It can be a little tough to find an affordable gift for Dad he can actually use. Not only that, but if your father is the type to..