Are you a Mobile Merchant?

Do you routinely work in an environment with limited access to phone lines or power outlets? Do you perform field services such as remodeling or manage an outside sales force in which on site payment would be optimal but somehow doesn't seem practical? If so then you should know that as a mobile merchant you have several options available to you which allow you to accept your customers electronic payments with ease. In this post I will point out some of the pros and cons of the following methods:

1. Wireless terminals
2. Battery operated terminals in store and forward mode
3. Dial Pay
4. Virtual terminals

Wireless Terminals
Pros: Compact and lightweight, these terminals provide fast and reliable authorizations at the point of sale. You don't have to worry about connecting to a phone line and the battery life on these terminals are generally 7-9 hours when fully charged. For merchants who have grown accustom to taking carbon copies and later keying transactions in to a standard phone line terminal, the wireless terminal offers a much welcome , streamlined solution.

Cons: The upfront cost on a wireless terminal is quite a bit higher than standard terminals and you have to pay for wireless service each month. Also, while the battery life is 7-9 hours fully charged, that may not be sufficient for some merchants.

Summary: If you're looking for an easy mobile solution and cash flow is not a worry, this is a fantastic option. If cash flow is a problem but you'd love to have one, you may consider your lease options.

Battery operated terminal in store and forward
Pros: These terminals eliminate the hassle of taking carbon copies of credit cards and provide you a way to swipe your customers card. They are also much less expensive than their wireless counterparts.

Con: Bulkier than wireless terminals. Battery life is slightly less than wireless terminals, ranging from 5-8 hours fully charged. Some models aren't designed so that battery packs can be swapped out, which means if your battery dies you'll either need to resort to taking carbon copies or you'll need a back up terminal with a fully charged battery pack. The big draw back to this method is the risk involved. Since it is not connected to a phone line you do not receive an authorization upon swiping the card. In fact, you won't know if you have a decline until you plug it in to a phone line and batch out your transactions.

Summary: If cash flow is an issue, or if you just need a temporary mobile solution, this may be the choice for you. I have many clients using this method and they have had little to no problems with declines, although I don't recommend this method if you have a high average ticket.

Dial Pay
Pros: Dial Pay is a system which allows you to use your cellular phone to call in a transaction. You simply dial in the 1-800 number provided to you and follow the prompts to complete the sale. The main upside to this method is that you don't need to worry about equipment or any upfront cost.

Cons: Dial Pay services on the transaction level are more expensive than standard processing methods. A typical Dial Pay account will run you about 3.5% overall in addition to standard monthly fees. The process of dialing in a transaction can be tedious and you don't have the ability of printing a receipt.

Summary: This is a good choice if you need to process electronic payments on a very infrequent basis. If accepting credit cards is a part of your daily sales routine I don't recommend it.

Virtual Terminals
Pros: The great thing about virtual terminals is that they are virtual. They can be accessed from any computer anywhere and provide a very high level of data security. The upfront cost of these systems is less than most hardware options. System updates are automatic and require no maintenance, manual upgrades or new equipment purchases. These systems facilitate swiped transactions when used with a mag reader and most allow you to process electronic checks. Virtual terminals can perform recurring billing, email invoicing and are capable of storing all of your customer data. Most of these systems also provide a payment gateway function so that you can link up to your shopping cart online, thus making it a all-in-one processing solution.

Cons: Although highly uncommon, when a remote server goes down, you go down. Most virtual terminals require monthly subscription fees.

Summary: If you have a laptop and are in a mobile sales situation, this is a fantastic option. In fact, the right virtual terminal could be a huge benefit even if you're not mobile; they've been successfully implemented in environments ranging from doctor's offices to beverage distribution companies. Also, the features and benefits of these systems become more robust and user friendly all of the time.

If you have any additional questions, or if you have interest in taking a look at a demo virtual terminal, contact me.