Definition. Wireless credit card processing services enable merchants to accept credit and debit card payments on mobile terminals at locations outside of their offices. Depending on the type of wireless credit card processing solution, the mobile terminals may be using short- or long-range networks to transmit the payment information collected from the card's magnetic stripe.
Types. There are two major groups of wireless payment processing solutions:
- Long-Range Wireless Payment Processing. Long-range wireless solutions use the same networks that cell phone carriers use for transmitting voice and data. The service is available everywhere network service is present. It is perfect for businesses that regularly accept payments at their customers' locations or at trade conventions and similar types of events.
- Short-Range Wireless Payment Processing. Short-range wireless devices use the same connectivity services that cordless phones use. The credit card processing terminal can be operational within a radius of several hundred feet of the location of its base unit which is connected to a phone line. The short-range wireless payment processing solution is perfect for merchants with limited mobility requirements, e.g. merchants who need card acceptance capabilities at different locations on their premises.
Advantages. There are several main advantages to using mobile solutions for accepting card payments:
- Additional Processing Options. A mobile credit card processing service allows you to immediately process card payments at trade shows, conventions, or on your customers' premises.
- Increased Security. With a wireless terminal the customer remains in possession of the card at all times.
- Reduced Processing Costs. Because wireless transactions are processed in a card-present environment, they generally receive the best possible rates.
Disadvantages. There are a couple of disadvantages of using mobile processing solutions that you need to be aware of:
- Equipment Cost. The price of wireless terminals is significantly higher than that of regular point-of-sale terminals and can be the deciding factor in your decision, especially if your processing volumes are low.
- Network Coverage. Generally described as the biggest draw-back, network connectivity is continuously being improved. You will need to check the reliability of the network that your prospective provider is using in the area you will be operating in before setting up a wireless merchant account.
