Setting up your business to receive mobile payments gives you to the flexibility to take payments from your customers no matter where they are. Within the past few years, the concept of being able to buy goods and services without taking out their wallet and/or going to specific location has become very popular with many consumers.
There are two types of mobile payments systems. The first type is when a customer uses his or her credit card to pay for something, but the merchant uses a mobile processing system to accept the credit card. The second way is for a customer to use their mobile phone to make a payment.
This second method is more commonly called cell phone credit card processing. Under this method, any person who wants to pay for an item or a service can use an application downloaded on his or her cellular phone to make a payment. At the end of the month, the charges for these goods or services show up on the customer’s mobile phone bill.
There are several different ways for a business to use mobile payments. One of the most talked about ways this technology is being used is in vending machines and parking meters. With mobile payment processing centers on these devices, customers simply pay the exact amount of money owed rather than necessitating exact change. Additionally, a customer can get a receipt for his or her purchase.
Mobile payments are becoming increasingly popular among many types of businesses. Before mobile payments, many small businesses were not set up to accept credit card payments. The main reason for this was the cost of the equipment to process the credit cards. Additionally, in order for the equipment to work properly, it had to be connected to a land-based phone line. This phone line made it impossible for companies who conduct business at remote locations or places without phone line access to accept credit card payments. With mobile payments, however, a business can now use mobile phone lines or the Internet to process these payments.
It is relatively simple for a business to set up mobile payment. The business owner sets up a normal merchant account for their business and can set up an application on their phone that accepts the customer’s account information and debits the funds accordingly.
Service providers such as plumbers, roofers, electricians, or landscapers can now utilize mobile payment technology to accept their customers’ credit cards immediately after the service is rendered. This is much better than collecting payment information or checks, then waiting to either run the charges or find out if the checks have cleared the bank.
Source: Online Media Partners