Mobile
merchant accounts is basically the same
as other forms of merchant accounts with
the single difference that it will allow
you to use one of the following mobile devices:
wireless credit card terminals, the Palm,
Pocket PC, BlackBerry RIM, and mobile phones
like iPhones or Gphone.
These
devices use a secure wireless protocol and
the wireless service you get from your phone
company to connect to your credit card processor
for authorization of the credit card payment.
Therefore, you have no need for a physical
phone line and there is no need for a power
outlet to connect your credit card machine
to.
This
is very handy when you are in a conference
or seminar, walking around and meeting customers,
and you want to charge them for product
or service. Also, you can sell your products
or services outside of your office premises,
where your customers are gathering.
Pro's
There are many benefits
to using a mobile credit card processing
solution. These include: mobility, meeting
customers at a location of their choice
rather than your offices, selling when the
customer is most excited, going to customers
rather than waiting for them to come to
you, staying ahead of your competitors,
and instant approval and decline of orders
which means knowing how you performed at
your sales event.
Con's
Many none-mobile merchant
account service providers waive application
fee and setup fees to attract more businesses.
However, mobile merchant service provider
often do not because of the high demand
for this service which means that you incur
the expense of the terminal hardware, activation
fee, monthly service fee, and transaction
fees, among others.
You should also be aware
of the coverage areas to make sure that
you do not encounter receptions problems
with a wireless service in a building, outdoors,
or a convention center.
A mobile merchant account
may be restricted to only mobile business
transactions, and may not be used as any
other business type of merchant account.
Typical
Fees with a cell phone processing wireless
merchant account
The usual cost of your cell phone and service
(whatever that may be - which you already
pay)
Wireless merchant services setup fee: about
$39 one-time setup fee
Merchant account discount rate: about 2.19%
for Visa/Mastercard transactions
Transaction fee: about 75 cents per transaction
American Express discount rate: about 3.75%
with transaction fee of 50 cents
Discover discount rate: about 2.60% with
transaction fee of 65 cents
Typical
Fees with a Wireless POS processing wireless
merchant account
Wireless POS (Point-of-Sale) device: $400
and upwards
Wireless merchant services setup fee: about
$39 one-time setup fee
Merchant account discount rate: about 2.19%
for Visa/Mastercard transactions
Transaction fee: about 75 cents per transaction
American Express discount rate: about 3.75%
with transaction fee of 50 cents
Discover discount rate: about 2.60 % with
transaction fee of 65 cents
| Mobile Merchant Account
Providers : |
Merchant
Seek |
Bank
of America |
ECHO
Merchant |
Credit
Card Processing |
Info
Merchant |
| |
|
|
|
|
|
| Type of merchant account service |
Wireless |
Wireless |
Wireless |
Wireless |
Wireless |
| Visa/Mastercard Merchant Discount
rate |
2.19% |
2.49% |
2.15% |
2.25% |
2.19% |
| Visa/Mastercard Mid-qualified rate
|
2.99% |
3.25% |
2.64% |
2.75% |
2.65% |
| Visa/Mastercard Non-qualified rate
|
3.19% |
3.60% |
2.99% |
3.19% |
2.99% |
| Transaction fee (per transaction) |
$0.75 |
$0.20 |
$0.25 |
$0.12 |
None |
| Debit card per transaction fee |
$0.75 |
$0.20 |
$0.25 |
$0.20 |
None |
| Monthly minimum fee |
$25 |
$25 |
$25 |
$25 |
None |
| Monthly statement fee |
$10 |
$5.95 |
$7.50 |
$10 |
$8 |
| Online or customer support fee |
$0 |
$0 |
$0 |
$0 |
$0 |
| Application fee |
$39 |
$299 |
$0 |
$0 |
$19 |
| Annual fee |
$0 |
$0 |
$0 |
$0 |
$0 |
| Cancellation fee |
$250 |
$0 |
$0 |
$300 |
$0 |
| Length of contract |
1-year |
1-year |
3-years |
1-year |
None
|
| Terminal equipment cost (one time) |
Free |
$499 |
Free |
Free |
N/A |
| Software cost |
Free |
$49 |
Free |
Free |
N/A |
| Shopping cart cost (if applicable) |
Free |
Free |
Free |
Free |
N/A |
| Payment Gateway monthly fee |
1.69% |
$100 |
$50 |
$50 |
$15 |
| Payment Gateway per transaction fee |
$0.25 |
$0.25 |
$0.25 |
$0.25 |
$0.20 |
| Wireless fee per month |
$8 |
$39 |
$50 |
$35 |
$39 |
| Wireless per transaction fee |
$0.23 |
$0.20 |
$0.25 |
$0.20 |
$0.25 |
| Address verification fee (AVS) |
included |
included |
$0.10 |
included |
included |
| American Express merchant account
rate |
3.25% |
3.25% |
3.25% |
3.25% |
3.25% |
| American Express per transaction fee |
$0.15 |
$0.15 |
$0.15 |
$0.15 |
$0.15 |
| American Express application fee |
$10 |
$10 |
$10 |
$10 |
$10 |
| Discover merchant account discount
rate |
2.65% |
2.65% |
2.65% |
2.65% |
2.65% |
| Discover per transaction fee |
$0.15 |
$0.15 |
$0.15 |
$0.15 |
$0.15 |
| Discover application fee |
$10 |
$10 |
$10 |
$10 |
$10 |
|
(last 30 days) 
