How to Set Up Your Business to Accept Mobile Payments

Instead of paying with cash or check, customers can pay for goods or services through their mobile device. The best thing is that a business of any size can easily take the necessary steps in order to begin accepting mobile payments.

That said there are many options to choose from so it is important to choose the right service as each one has slightly different variations. The variations could be significant depending on the projected amount of transactions expected and on the type of business you have.

Watch Those Fees

If you’re a small business owner you should pay particularly close attention to the minimum transaction fee that many providers charge. A charge like this can severely hurt your bottom line, especially if most of your business is done in store with cash. If you don’t meet the minimum number of transactions needed and incur the fee, it can actually cost your business more to accept credit cards than the amount of revenue being generated by those transactions.

Taking Charges

Also take note of any per transaction charges, merchant services setup fees, restrictions or requirements and any hardware costs. Some popular choices for providers are Intuit GoPayment, Square and Verifone’s PAYware Mobile.

Square Mobile Payments for Entrepreneurs

Banks You Can Trust

In order to utilize most services, you will need to set up a merchant account with a provider and this differs depending on what country you’re in but you’ll need to provide an ID number or proof identity or residency, mailing address and bank account.

If you have a bank you know or trust then stick with them, especially if you know you can rely on them. Many small business owners use the same bank for their merchant account that they do for their regular business account, feeling that the relationship is key to the success of the business.

However, this isn’t always possible when you set up your with an account that processes mobile payments. Some local banks do not offer those services as a majority of their patrons do not need them. If this is the case, do not feel bad about asking your local representative if they could recommend a bank that offers those services to you.

Setting Up Your Merchant Account

There are some merchant accounts that will allow for offshore transactions if needed. If that is something your business plans to need, you should ask your provider about any risk and fees that may be associated with an offshore account.

Many merchant services applications take as little as 20 minutes to process and can be done over the phone or online. You will need to provide financial, identification, projected sales figures and business information, so it is advisable to have all documentation ready before beginning the application process.

You may also need to download the appropriate application to your mobile device if using a service like Square. Once you have the app installed, you can customize it to your needs such as setting a field to include tips or a delivery charge. This is a relatively simple process, although most applications do charge you to download them. If you have trouble, you can usually ask a representative from your mobile provider to help set up the payment application.

Advertise Your Mobility

Once you have set up mobile payments for your small business, the only thing you have left to do is advertise to your customers that you are now accepting mobile payments. This is an important step that many business owners need to do immediately.

Having the ability to accept payments anywhere sets your business apart from the competition and you should use technology to spread the word.

A popular approach is to start a social media campaign that offers customers special deals for making a mobile purchase at your business. This makes the consumer aware of your service and makes the investment you made into the technology pay off faster. Accepting mobile payments can be a great asset for many businesses and will ultimately add to their bottom line.

Jacob Thompson works for a site that features advice on payment processing for businesses. He has written several features on the growth of technology in the payments industry that have appeared on various small business web sites.