New Ideas and Technology for Credit Card Processing in 2012 for Startups
Credit card processing for users of mobile technology is a new way to process customer payments that is being used by a lot of large and small businesses. For many business owners, credit card processing has always presented a unique set of challenges.
In the past, being able to accept their customers’ credit cards would require a business to buy hundreds or thousands of dollars’ worth of specialized equipment. In addition, each credit card terminal would require the business to set up a separate phone line, costing hundreds of dollars a months for businesses with multiple cashier terminals. Taken all together, this made accepting their customers’ credit cards just too cost-prohibitive for many small businesses. New technology becoming available in 2012 has made it possible for businesses of all sizes to accept credit cards without having to accept a large bite out of its bottom line.
With so many new businesses practically hanging signs reading merchant account needed in their store fronts, many new companies have rushed to offer affordable ways to provide a merchant account for business. For many start-ups, who are close to hanging up these “merchant account needed” signs, being able to process their customers’ credit cards means having the ability to accept larger orders and make bigger sales.
One of the most talked about types of new technology that is becoming available to merchant account for business is mobile processing. Mobile processing refers to new apps and card readers available in 2012 that snap on to a smartphone or tablet computer. The business owner or their staff simply swipes the customer’s credit card through the card reader. The app installed on the mobile device then transmits this data to the credit card processor.
The best thing about this advance in technology is that is allows a business to process their customers’ payments from any location. In fact, a lot of businesses that operate in non-traditional locations, such as those who make sales from farmer’s markets and craft fairs, have started to use this technology already.
After the card has been processed, many of these apps and credit card processing services allow their clients to provide their customers’ with a receipt for their purchases. Businesses that have started using this technology have reported higher customer satisfaction. Overall, they report that accepting credit cards makes their business more credible. Service-based companies really like being able to accept a customer’s credit card at the point in time that service is rendered, as opposed to going through the process of invoicing and waiting on payment.
Money from credit card transactions is usually deposited in the business’ bank account within twenty-four hours. This eliminates the need for businesses to worry about accepting customer checks, or making deposits of cash in person at a bank.
The year 2012 will also bring about a higher use of customers paying with their mobile devices. Customers can download an app to their smartphones that allows them to transmit payments to a business. These apps allow a business to take payments from customers even if they don’t have a credit card on them. Many beach-front businesses have discovered that this allows their customers to pay for goods and services without having to go back to their cars to find cash or a credit card.
These apps can also be set up to break up a large purchase into smaller payments. For example, a customer who wants to make a $500 purchase can use the app to make five $100 payments over the course of five months. The business accepting the payments can even choose if they want to add interest. By being able to break up large purchases into smaller payments, customers are much more likely to buy more from a business.
Businesses who sell big ticket items such as furniture love the idea because it allows them to farm out lines of credit to another party. Since each payment is automatically charged to a credit card, the business doesn’t have to worry about getting paid, and the customer doesn’t have to worry about remembering to make payments on time.
Customers who download these apps will see the charges appear on either their credit card statement or on their monthly wireless service bill. Businesses who accept the payments will process them just as they would credit card payments. While some businesses will look at this as a way to expand their customer base or increase their sales, other businesses will be able to expand into new areas.