How to Use a Smartphone to Process Credit Cards
Credit and debit cards are more popular than ever, and modern businesses must have the ability to process credit cards to remain competitive. While processing credit cards has traditionally been challenging for service businesses that collect payment in the field, such as parking garages, it is possible to use a smartphone to process credit cards.
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Things You'll Need
- Credit card merchant account
- Processing software
- Mobile card reader
- Mobile printer
Instructions
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Obtain a merchant account with the provider of each credit card you wish to accept. Merchant account fees can be significant if you obtain an account with each provider individually. Merchant service providers offer business owners the ability to process transactions for any or all major credit cards under a single account.
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Install credit card processing software on your smartphone. The core of any mobile credit card processing system is the software that links the card reader, the phone and the printer. Processing software, such as MobileWare from Mobile Warehouse and Pocket Verifier from Advanced Merchant Solutions, will handle the transmission of transaction data between your phone and your merchant services provider.
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Obtain a mobile credit card reader for your phone. As with traditional retail card processing systems, a magnetic stripe reader is required to collect and transmit information stored on your customers' credit cards. Card readers designed for smartphones are not much larger than a credit card and are often attached via USB.
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Obtain a portable printer designed for use with your smartphone. This will allow you to print receipts for your customers on the spot in addition to sending them via email or text message. The ability to print receipts from your phone will allow you to collect physical signatures on merchant copies as well.
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Tips & Warnings
Consider purchasing an all-inclusive credit card processing system rather than purchasing the components individually. Services such as MobileChargePro and Square offer comprehensive packages that include a card reader, printer, software and subscription-based merchant services.
Check each component for compatibility with your smartphone before making a purchase. Many components are manufactured for specific phones and will not work on a different model.
