Mobile Card Readers: The New Way for Small Businesses to Accept Payments In Industry
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| Mobile Card Reader |
A
mobile card reader is a small device that plugs into the headphone jack or
lighting port of a smartphone or tablet. It allows the mobile device to process
card payments just like a regular credit card machine. When a customer wants to
pay with a card, the merchant simply inserts or swipes their card through the
reader. The payment information is then securely transmitted to the merchant's
payment processing account through their mobile device.
The reader uses the cellular network or wireless internet connection of the
mobile device to authorize payments in real-time. No additional landline or
wireless internet connection is required. Once the payment is authorized, the
merchant can process the transaction and provide a digital receipt to the
customer via email or text message.
One major advantage of mobile card readers is that they allow very small
businesses without a traditional storefront to start accepting card payments.
Solo entrepreneurs, freelancers, tradesmen, and online sellers can all take
payments on the go using just their smartphone. Mobile
Card Reader opens up new revenue opportunities that weren't previously
possible without a traditional terminal and business address.
Mobile readers are also much more affordable than traditional payment
terminals. Many readers cost under $50 which is significantly less than renting
or purchasing a full card machine. There are also no additional monthly or year
processing fees that come with traditional terminals. Merchants only pay a
small percentage per transaction similar to traditional merchant accounts.
Another advantage is the portability and flexibility that mobile readers
provide. Since they connect directly to a mobile device, merchants have the
ability to accept payments anywhere. This is ideal for food trucks, delivery
services, ride-shares, craft shows, and other mobile or multi-location
businesses. Readers easily fit in a backpack or tool bag so merchants always
have the ability to get paid without being tied down to a physical storefront.
Security
and Compliance
One concern with mobile card readers is the security of processing payments
through a smartphone instead of dedicated payment terminals. However, modern
readers use the highest banking-level encryption to ensure all payment details
are protected in transit. Readers are also certified by the major card brands
to meet all industry security standards.
As long as merchants use reputable payment processors, the liability is no
different than with traditional terminals. Major processors offer protections
like reimbursement for fraudulent transactions in approved scenarios. Sensitive
cardholder information also never resides on the mobile device and is instead
sent directly to secure merchant servers for authorization.
Mobile card also comply with industry regulations for payment acceptance.
Processors are certified under the Payment Card Industry Data Security Standard
(PCI DSS) and Payment Application Data Security Standard (PA-DSS). Merchants
don't need additional certifications beyond signing up for a compatible
processor account. This removes the red tape traditionally involved in
accepting non-cash payments with a small business.
Choosing the Right Reader
With many providers entering the mobile payments space, small business owners
have a variety of reader models to choose from. When selecting a reader, some
factors to consider include connectivity options, processing capabilities,
compatibility with existing payment systems, cost of ownership over time, ease
of use, repair/replacement policies, and customer support available.
It's also important to verify a reader works with the type of merchant account
desired. Many free or low-cost readers only support processing via proprietary
applications instead of mainstream processors. Be sure any per-transaction or
monthly fees are understood upfront.
Technical abilities like EMV chip reading, magnetic stripe swiping,
NFC/contactless payments, and integrated invoicing should align with a
business' needs. Finally, pay attention to ergonomics like portability,
durability, and ease of use with customers to ensure the best experience.
Choosing a top-rated mobile card reader is key to futureproofing small business
growth.
Mobile card readers provide a cost-effective and flexible way for entrepreneurs
and small businesses of all kinds to start accepting non-cash payments directly
from their smartphones or tablets. By removing location restrictions and upfront
costs traditionally associated with payment terminals, readers significantly
lower the barriers to entry for new merchants. As long as security, compliance,
and compatibility with existing systems are verified, a mobile card reader can
be a powerful tool for revenue and business expansion.
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Vaagisha brings
over three years of expertise as a content editor in the market research
domain. Originally a creative writer, she discovered her passion for editing,
combining her flair for writing with a meticulous eye for detail. Her ability
to craft and refine compelling content makes her an invaluable asset in
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(LinkedIn: https://www.linkedin.com/in/vaagisha-singh-8080b91)
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