Mobile credit card processing is a great way to accept payments on the go. Whether you’re a small business owner who sells products at craft fairs or a food truck vendor, having a mobile credit card processor can help you make sales and get paid quickly and easily.
In this guide, we’ll cover everything you need to know about mobile credit card processing, including the different types of processors available, the fees you can expect to pay, and how to choose the right processor for your business.
What is Mobile Credit Card Processing?
Mobile credit card processing is a service that allows businesses to accept credit and debit card payments using a mobile device, such as a smartphone or tablet. Mobile credit card processors typically come in the form of an app that can be downloaded to your device, or a physical card reader that plugs into your device’s audio jack.
With a mobile credit card processor, you’ll be able to accept payments wherever you are, as long as you have an internet connection. This is a great solution for businesses that do most of their sales offline, such as brick-and-mortar stores, restaurants, and service providers.
Mobile credit card processors typically charge a per-transaction fee, as well as a monthly or annual subscription fee. The fees will vary depending on the processor you choose, but you can expect to pay around 2.5% – 3.5% per transaction, plus a monthly fee of $10 – $30.
Types of Mobile Credit Card Processors
There are two main types of mobile credit card processors: brick-and-mortar processors and online processors.
Brick-and-Mortar Processors
Brick-and-mortar processors are ideal for businesses that do most of their sales in person, such as retail stores, restaurants, and service providers. These processors typically offer lower per-transaction fees than online processors, as well as the option to set up a merchant account with the processor.
With a merchant account, you’ll be able to accept credit and debit card payments without having to pay a per-transaction fee. Instead, you’ll pay a monthly or annual subscription fee, as well as a small percentage of each sale (typically 1.5% – 2.5%).
Brick-and-mortar processors also typically offer other features, such as the ability to track inventory, manage employees, and send invoices.
Online Processors
Online processors are ideal for businesses that do most of their sales online, such as ecommerce stores and subscription services. These processors typically charge higher per-transaction fees than brick-and-mortar processors, but they don’t require you to set up a merchant account.
With an online processor, you’ll pay a per-transaction fee of 2.5% – 3.5%, plus a monthly or annual subscription fee. Online processors also typically offer features such as the ability to send invoices and track payments.
Fees Associated with Mobile Credit Card Processing
There are three main fees associated with mobile credit card processing: the per-transaction fee, the monthly or annual subscription fee, and the merchant account fee (if applicable).
Per-Transaction Fee
The per-transaction fee is a fee that you’ll pay each time you process a credit or debit card payment. This fee is typically a percentage of the total sale, plus a small flat fee. For example, if you process a $100 sale with a 3% per-transaction fee, you’ll pay $3 in fees.
Monthly or Annual Subscription Fee
The monthly or annual subscription fee is a fee that you’ll pay each month or year to use the mobile credit card processor. This fee is typically a flat fee, and it covers the cost of the software and customer support.
Merchant Account Fee
The merchant account fee is a fee that you’ll pay if you choose to set up a merchant account with the processor. This fee is typically a monthly or annual subscription fee, plus a small percentage of each sale (typically 1.5% – 2.5%).
The Bottom Line
Mobile credit card processing is a great solution for businesses that do most of their sales offline, such as brick-and-mortar stores, restaurants, and service providers. Mobile credit card processors typically charge a per-transaction fee, as well as a monthly or annual subscription fee. The fees will vary depending on the processor you choose, but you can expect to pay around 2.5% – 3.5% per transaction, plus a monthly fee of $10 – $30.
If you’re looking for a mobile credit card processor, we recommend PayPal Here or Square. Both processors offer competitive rates and features, and they’re easy to use.
