Credit Card Phone Processing



There are a few options for credit card phone processing that we advise our small business clients on from time to time. A card reader or "toggle" or "swiper", as some people call them, is that little piece that fits firmly into the audio jack in your phone. They work with Android as well as Apple based smart phone models, but are not meant for high volume businesses that might put a strain on their smart phones. Also, if you have employees, that means they will be using your phone when accepting credit card payments.

Before using a mobile card reader, you download a software program from the app store and insert the card reader into your smart phone. When a customer makes a purchase you simply enter the amount on your phone, taxes will be added as applicable, and then you either swipe or insert the customer's card into the reader.

You will want to use a card reader that accepts and reads chip cards.  If you don't, then in the event of credit card fraud you will be responsible for the loss, not the bank or credit card processor. Also, if you are not using an EMV compliant card reader in your phone jack, you will be paying more for processing costs, which can be as much as $25.00 to $75.00 in some cases. 

Ingenico® RP457c Mobile Card Reader

The option we are currently offering our small business clients for credit card phone processing is the Ingenico® Mobile Payment RP457C Audio Jack EMV/NFC Reader for Converge Mobile. The Ingenico®RP457c, is an attached card reader that connects via Bluetooth or audio jack. This device offers chip card, magnetic stripe and contactless payments, including Apple Pay®, Android Pay™ and Samsung Pay®. Plus, encryption technology helps keep card data safe at the point of entry and throughout the payment process. 

Converge Mobile software is simply downloaded to your smart phone. It is a powerful app that is ideal for retail, restaurant and service businesses of any size whether you need payments on the go or as an extra checkout option for busy times. The Converge Mobile app works with most Apple® and Android® mobile devices and uses an encrypted device to help keep card data safe at the point of entry and throughout the payment process. Converge Mobile is easy to setup and easy to use – for both you and your customers, and is highly recommended for credit card phone processing. The Ingenico®RP457c accepts PIN debit and credit cards, including mag stripe, EMV chip card and NFC contactless payments from various smart phones. It also records cash transactions, automatically calculate discounts, taxes and tips. Converge is a robust software application that helps protect cardholder data with an encrypted, chip card device.  

Use an unlimited number of supported iOS or Android devices.  Supported mobile devices include: Apple iPhone® , iPad® , iPad Air® , iPad mini™, iPad Pro™ and iPod touch® with iOS 7 and above; Mobile smartphones and tablets operating on Google Android version 4.1.1 or above. 

eDynamo from MagTek®

Another option for credit card phone processing is eDynamo from MagTek®which comes in either a swiper version which is not EMV approved, or the newer version that reads chip cards. The newer version has not been certified by Elavon, and I am not quite sure which processors have certified it yet. 

As I discussed above, make sure if you use the eDynamo that you use the one that accepts chip cards, otherwise your monthly processing costs will be quite expensive. Also, you will have to check around to see which processors have certified the eDynamo to be PCI compliant and integrate with their processing. With all the changes taking place in the electronic payments industry you want to make sure all your equipment is not only certified, but also compatible with your processors software.

Square Mobile for Credit Card Phone Processing

Yet a third option, Square, for credit card phone processing, is not always necessarily the best choice; although it is very well-known because of heavy advertising. You also will need to do a price comparison to see if you really are getting a better deal. Also, what about customer support? There are often long wait times if you call Square to get some assistance. It is usually best to have a direct agent you can call directly if there is a problem, but you don't get that with Square.\

My small business clients have my cell number and they know they can count on me and call me anytime if they have a question. Small business owners know how important it is to provide great customer service to their growing business, and I do my best to make sure they get the best customer service from me and my team. 

Although Square has gone public, it has not had the best financial record. Square reduced its 2016 annual net loss to $172 million from the previous 2015 year's $212 million net loss.

I hope this information on credit card phone processing has been informative and given you a good understanding of what to look for when making a decision on using a mobile credit card reader. Small business will sometime use these card readers with their phone for a year or so before they decide the need something a little more durable for their business and less wear and tear on their phone.

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