Finding An Inexpensive Mobile Merchant Account

Also known as a wireless merchant account, a mobile merchant account is a solution for service providers like plumbers, locksmiths, windshield repair, etc.

In other words, any business where the "office" is at the site where work is done.

There are a couple ways that merchant account providers can give you the ability to process credit cards on the go.

• One is via a standard wireless merchant account.
• The other is a "call in" mobile merchant account.

What's the difference?

Let's break them down:

Wireless merchant account

A standard mobile merchant account is what you can expect from a bank or typical merchant account provider online.

Essentially, this is a retail merchant account that comes with a special type of card swipe that is either attached to a cell phone or is a stand-alone wireless terminal.

• The big advantage: Because the card is physically present, you will only pay the lower, retail merchant account rates. That is a substantial savings.

• The big drawback: Typically, these are more expensive, specialty terminals. That should be included in the startup costs that you consider with comparing prices for a merchant account. Also, these systems work over cellular networks, which adds another fee and some geographic limitations to consider.
  

"Dial in" merchant account

This type of mobile merchant account is essentially a third-party system.

Here's how it works: You call up a special 800 number, enter a passcode and the customer's credit card information. The real-time transaction takes place while you wait. A reference number is given and the account is settled.

TouchPay is an example of one of these "dial in" merchant account providers which can be a bit more difficult to find than your everyday wireless merchant account. But a full-service provider like Electronic Transfer does it for less.

• The big advantage: No expensive wireless credit card equipment is needed and the information can be sent over any phone line.

• The big disadvantage: This is another "card not present" situation, which means much more expensive transaction fees or discount rates.
  

The bottom line...

A "dial in" mobile merchant account is a great option for small operations that have less than 50 transactions a month.

SIDEBAR Sound familiar? This is very similar to the advice I give for third-party processors for online payment processing. And you can use the same calculator found in that article to compare prices and decide where the break-even point is for you.

If you have more transactions per month, or have concerns about fraud and chargebacks, a standard wireless merchant account is the way to go.

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