mobile credit card processing

Mobile Credit Card Processing: What You Need To Know

From taking credit card payments over the phone to accepting payments through PayPal, Mobile credit card processing has many benefits it can offer your business. Here's a guide on what it is and why you need it.

According to the Nilson Report, debit cards are the largest consumer payment system in the US, accounting for 67.93 percent.

This stats show that credit card processing is the ideal way for businesses to accept payments from their customers. In this case, businesses have access to multiple options, including POS systems, countertop devices, terminals, and mobile, to use in processing payments.

One notable option is the mobile credit card processing. This service has significantly defined how sellers accept and process payments. In this post, we're going to guide you through mobile payment processing.

Let's dive in together!

What Is a Mobile Credit Processor?

Process credit cards with smart phoneTypically, mobile credit card processing allows you to accept credit card payments on the go. You do this by using a credit card reader connected to your mobile device.

In this case, you don't need other equipment apart from the reader and a mobile app. Plus, the app is free to download and offer varied features for managing transactions. Your payment processor may offer this service as part of the package deal.

There's a ubiquity of mobile payment merchant services, including PayPal Here, Square, Shopify, and Cayan. You can choose one that best suits your business needs and offers the most features for your selected package.

Different Options Available

Mobile processing services are available in two options depending on your business needs: Standalone and integrated services.

Standalone Payment Services

This service does not require you to buy a bundle, and you don't need to use it with any other services. In most cases, you're not bound to any contract as they offer the app only. If they provide other services, such as invoicing and virtual terminal, you're likely to incur additional costs.

Examples of standalone mobile credit card processing services, include Square, SumUp, PayAnywhere, and PayPal Here.

Integrated Payment Services

With integrated payment services, you receive mobile payment processing service as a part of the package. Usually, you'll get when you purchase a POS or eCommerce suite from a merchant provider. In this case, the service is designed to be used as an extension or a supplement.

Examples of great integrated services include Shopify, FattMerchant, and Clover Go.

If you run brick and mortar, eCommerce, and mobile sales, then integrated solutions are ideal. However, if you want a pay-as-you-go service, then standalone mobile payment services will suit you.

Essential Features For Mobile Payment Processors

To ensure convenient payment processing, you need to consider the features that a particular service offers. However, beware that standalone services usually have limited features than integrated solutions.

mobile credit-processorAn essential service should have several features, such as quick sale mode, tipping, cash and check recording, sales tax settings, and receipts This is not to mean that all basic level services will offer these features. But they should have most of them.

You can also find other options with intermediate features, such as in-app invoicing, receipt printing, multiple tax rates, item variants, and discount feature. Advanced apps will come with the virtual terminal, offline mode, custom reporting, and barcode scanning.

As you search for services with unique features, bear in mind that most don't support complex inventory. Particularly, their compatibility with barcode scanners, cash drawers, and receipt printers tend to be limited.

Also, you don't need every feature out there to ensure seamless transactions.

Choosing the Best Mobile Credit Card Processing Service

The best choice of mobile credit card processing depends on the unique needs of your business. You can be a freelancer with occasional customers or a brick-and-mortar business with a huge inventory.

Whatever the case, there are several things you need to consider when choosing a credit card processor. They include:


You need to know that there are upfront and recurring costs that you may experience. The recurring expenses are usually complicated with most processors. Some offer a flat monthly fee while others take a percentage of each transaction, such as PayPal and Square.

Choose a service that offers a flat, fixed rate. This way, you can avoid those processors that charge depending on card type. For example, American Express usually have high transaction fees of 2.5 percent to 3.5 percent compared to other cards. Also, consider the cost of the equipment.

Security Tools

Hackers are getting smart every day, and you want a service that implements the latest security measures to keep your transactions safe. For in-store transactions, EMV chips are hard to forge than cards with magnetic stripes. However, they're prone to malware and fraud on POS.

So, ensure you're using encryption and tokenization to protect cards. For online transactions, ensure the processor supports CVV2 verification and SSL certificates. Make sure the merchant meets all the Payment Card Industry Data Security Standard (PCI-DSS) guidelines.

Customer Support

You're likely to need help at some point. So, be sure to pick a processor that offers customer support 24 hours a day, 7 days a week. The last thing you want is losing customers because of failed transactions. Avoid services that offer automated support, which can be very frustrating.

Take the time to review and compare different processors before choosing the ideal options. You may also want to look at the payment coverage of a particular service. Ideally, they need to accept all popular credit cards. The app they offer for mobile should also be easy to use.

Also, as you grow, you want to leverage other services, such as bookkeeping, reporting and invoicing. Be sure the processors offer these services apart from processing. For eCommerce websites, ensure the processor allows integration for third-party services, such as BigCommerce, Intuit, and Shopify.

Mobile Credit Card Processing – Final Thoughts

Customers love using credit cards to make payments because they offer cash-back incentives. Transactions are also automatically recorded, so it's easier for them to track their expenses.

As a business owner, you need to provide customers safe and convenient payment options. With mobile credit card processing, you can make things easier for them and your business. It becomes fast to accept payments and manage your business in a dynamic environment.

Side by Side Reviews offers you insightful credit card processing reviews to help you choose the right processor.

Author: Hudson Piccini

Hudson Cynar, a Harvard University alumna and the owner of three prosperous enterprises, is a distinguished business consultant, author, and writer. Her expertise spans multiple business sectors, with a particular emphasis on storage containers, commercial copiers, payroll services, and medical billing software. Dedicatedly investing thousands of hours into product and service research, Hudson crafts insightful reviews to guide entrepreneurs in making informed decisions for their businesses.