There are also many myths surrounding this form of payment online which need to be dispelled.
However, due to the fact the technology is still quite new, many business owners are wary of implanting it. As a business owner, it is important you know the facts about mobile credit card processing and educate yourself about the benefits of using this technology. Almost half of Americans are smartphone users and with the mobile payments industry growing to over $200 billion in 2015, using this technology could see sales rise and customer feedback improve almost overnight.
Here are some of the myths associated with mobile credit card processing along with the reality:
Myth #1 – The Fees are Too High
This is a myth which is constantly chimed out by businesses as an excuse for not accepting mobile credit card payments. However, the reality is that it can be very affordable for businesses of all sizes. The fees for accepting mobile credit card payments are significantly lower than the fees for renting a traditional wireless terminal, which can set you back around $1,000. There are also no fees to setup mobile payments and no cancellation fees for many options.
Many mobile payment processing services offer two options to customers – pay as you go and high volume. The best option for your company is dependent on how many sales you expect to make using mobile payments. With the pay as you go option there are no monthly fees and you only pay a fee when a transaction is processed. This is a great option for smaller businesses who make fewer sales per month than a monthly fee would justify. The other option is the high volume contract which charges a set monthly fee regardless of how many mobile payment transactions are made. This option is better for larger businesses who make a significant number of sales each month using mobile payments.
Myth #2 – I Don’t Need to Offer A Mobile Credit Card Solution
This myth is quite an old fashioned view of how business works today. Surprisingly there are still merchants who refuse to accept credit cards at all and will only accept cash as a payment type! If your business isn’t offering a credit solution for customers you are missing out on a huge amount of potential. Accepting credit card payments allows you provide an easy option for customers to pay in your brick and mortar store as well as providing the option to expand and accept payments online.
The average order size from customers paying with credit cards is often much larger than those paying with cash. According to a study, more than half of new mobile credit card processing merchants say they made more than $1,000 per month by simply offering this option to customers. The potential is there for all businesses to grow and although there are fees to pay, the benefits far outweigh the negatives.
Myth # 3 – It Takes Too Long to Get Paid
Another myth is that it takes too long to actually see the money in your bank account after a mobile payment has been made. However, the average time between the transaction being made and the money landing in your account is 2-7 business days. There is also the additional benefit of spending less time collecting and casing down payments as the whole process is automatic. Many merchants actually feel they get paid quicker with their mobile payment app.
Myth #4 – It’s Too Complicated to Set Up
Getting your business ready to accept mobile payments is a surprisingly simple process. It takes only a few minutes to sign up and begin accepting payments from customers using their mobile. At EthosPay, we look after everything on your behalf and will have you setup and ready to go in no time. Simply make an enquiry and we will get back to you with advice as to the best way to accept mobile payments, how it is suitable to your business, and respond to any other questions you may have.
Myth #5 – Mobile Payments Aren’t Secure
There is a major worry among both customers and merchants that mobile credit card processing isn’t as secure as a credit card terminal. However, this isn’t true at all and the only reason people feel this way is because they have become used to credit card terminals and are still wary of the new technology. Using a reputable company, such as EthosPay, who encrypt card data can help put your mind to rest when implementing mobile credit card payments into your business.
Myth #6 – It’s Not Worth The Effort
This is the biggest myth of all and one that has been dispelled many times over the last few years. Numerous surveys and studies have found that merchants make sales they wouldn’t have done otherwise by using mobile payments solutions. The ability to accept payments in a range of ways can be the difference between making and losing a sale, losing a customer to a competitor who offers more flexible and convenient payment options, and the reputation of your company and/or brand. Making the effort to provide convenience for your customers is essential in today’s marketplace and can take your business to the next level.
At EthosPay, we offer fast approval, no setup fees, and first class service for a range of industries. We specialize in providing solutions for small to medium sized businesses who have been declined elsewhere. Get a free quote by completing the form on our homepage and see how EthosPay can change the way you do business forever!