New mobile credit card apps allow organizations to process transactions online, through a tablet or smart phone. These popular apps are especially tempting for small businesses or sole proprietorships that see it as an easy way to accept plastic. The market is competitive with companies such as Square, GoPayment, ROAMpay, PayPal Here, Dwolla, Google Wallet, Payfone, MCX, Breadcrumb, PaySimple and Swipe all vying for the market share. However, for B2B companies or for organizations that process hundreds and thousands of payments daily, this simply isn’t an option. An integrated payment processing approach is necessary, and a business process outsourcingcompany can offer an efficient, timely solution.
Mobile credit card processing is a nickel and dime business that can leave many companies with barely enough left over to cover their own slim margins. For companies considering a mobile method, they should be aware of the costs involved.
Many mobile processors provide free card readers to new merchants that can be used on a tablet or smart phone. Additional readers can cost between $10 and $15. The organization may need to buy a tablet, dedicated exclusively to acting as a cash register. These tablets are exponentially more expensive than a simple cash register or credit card reader.
Most mobile processors charge a monthly fee for their services. This fee may be called a statement fee, account fee, bundle fee, payment gateway fee, or wireless access fee.
Some processing companies may charge companies an annual account fee in addition to their regular monthly account fee. Others may charge a Payment Card Industry (PCI) compliance fee.
The term “discount rate” is a little misleading. It’s actually several different charges that merchants incur in order to process a credit card sale. Part of the rate represents the fees paid to the credit card processing organization and part represents the fees paid to the merchant’s bank. This rate is expressed as a percentage of the sale.
Most mobile payment processors also charge an additional per-transaction fee. The fee ranges from 10 to 25 cents.
Mobile processors can also charge a number of other fees. Such fees include charges for canceling a service before the contract has expired, bank routing fees and other service fees.
Integrated payment processing is essential
While small companies may see mobile processing apps as a simplistic solution to processing a credit card, the fees can amount to a huge headache if not properly researched. Instead, an organization can turn to an experienced business process outsourcing company to handle payment processing and avoid the headaches.
(How bad can a payment processing glitch get? Consider reading: $92 Quadrillion and Other Payment Processing “Glitches”)
BancTec’s proprietary hardware and software imaging technology ensures one single integrated process can be applied to every payment, which means accelerated processing and same-day clearing and balancing activities. BancTec sets itself apart from other BPO companies with the following features:
- BancTec payment processing yields fewer bad checks, provides earlier fraud detection, fewer errors, enhanced privacy and reduced costs
- Increased efficiencies are gained by converging all payment streams, including paper checks, images, Image Replacement Documents (IRDs), substitute checks, Automated Clearing House (ACH) and debit transactions
- Reports and data delivery are available via the Internet, EDI or CD
- BancTec utilizes its own transport devices that process payments up to 600 items per minute and sets the industry standard for reliability
- Flexible archive tools provide quick and easy storage and access using existing networks and the Web
- Cross-reference with cash letter reports and balancing items as well as support for alternative capture systems
- The service can be integrated with all standard technology platforms (SAP, Oracle, .NET, etc.) to reliably deliver account information and exceptions