These days you can accept payments on just about anything. With apps like Square, GoPayment and PayAnywhere, it has never been easier to take credit card payments. Some stores have even equipped each of their staff members with mobile devices ready to accept payment. Coffee shops are using Square Register on an iPad to take coffee orders and accept payments. It’s a mobile world we live in. The other day I was getting lunch and paying by credit card. The lady at the register was having a hard time with her credit card terminal. It was trying to dial out but it wouldn’t connect. After two attempts, it finally went through. I felt bad for the people waiting behind me in line.
A couple of weeks ago, I was in San Francisco for a conference. I walked into a coffee shop and was able to place my order using the Square Order app on my smartphone. I didn’t even have to wait in line because I had already ordered and paid using my phone. Starbucks is working on rolling something like this out and Taco Bell just launched mobile ordering a few weeks ago.
Not all of us have a business that needs mobile ordering but think for a moment about how you could use mobile technology to improve the process for handling your customers. Credit card terminals are still expensive and for some reason merchant accounts still have hidden fees. When one of my customers wants to pay by credit card, whether they are present or on the phone, I use my smartphone. It’s easy and it always works.
The traditional credit card terminal needs to go the way of the traditional phonebook, and I say this because the cost is high and the convenience is low. The average cost per month to have a credit card terminal, pay the gateway fees and any associated account fees is $15.60. Though credit card transaction fees are promised to be as low as 1.69%, it is not often that you actually get rates that low. You only receive the “discounted” rate promised if the right card is used at the right time. The average rate most end up paying is 2.24%. Depending on the type of card, you could pay anything between 1.69% and 3.5%. There are a few cards that will cost you as much as 4.5%. On top of that, you also have per transaction fees that average $0.23 per transaction depending on what the merchant service you use charges. (Buyerzone)
Let’s take a look at Square. Square was started by the founder of Twitter started a few years ago. Square is inexpensive and convenient. If your customers card is present to swipe, the fees are 2.75% regardless of the card. There are no other fees and your transactions batch out to your bank account just as fast as your archaic terminal. The best part, you can put a terminal in the hands of each of your employees by getting them a Square reader, which Square provides for free, and a mobile device such as an iPod Touch or an iPad. Do you have salespeople out in the field? Give them the ability to take a deposit or payment on the spot.
Not ready to enter the twenty first century yet? You dont have to throw out your terminal just yet. Sign up for one of these payment services and try it out. The credit card payment landscape is changing and small businesses are reaping the benefits. Now is the time to contact your credit card merchant service and renegotiate your rates or make the switch. Of course there are benefits to using traditional merchant services but these days, I would consider you check out the options and make use of the tools available to help you sell or book more business. Technology has given us options. New companies are starting up every day trying to disrupt the status quo. Technology allows us to make faster and more informed decisions. How can your business use new technology to give your employees the leading edge tools they need to increase your bottom line?
I wrote this article on a Google Nexus tablet directly into a Google Doc and posted it to my website using cloud sharing. #Technology
