Should You Use Your Cell Phone for Credit Card Processing?

Should You Use Your Cell Phone for Credit Card Processing?
One of the most exciting new technologies for businesses is the ability to process credit cards using your cell phone. As with every new technology, there will be a lot of questions on whether it really works, how it can change business, and if it is safe to use. So should you use your cell phone for credit card processing? Let’s first take a look at how credit card processing works with a cell phone.

How Cell Phone Credit Card Processing Works

You may be wondering how this is all possible. If you’ve operated a business before and have taken credit card orders, you may be familiar with the big credit card processing machines. Depending on the type of phone you have, you can connect a smaller version of this machine and process credit card orders. This machine is small and the machines are specially designed to work with smart phones such as the iPhone and Blackberry.

To put a payment through, you simply swipe the credit card through the machine and the buyer can authorize it by signing his signature. He can also put his pin number through using the phone. You can even email a receipt (or a text message) of the purchase to the buyer so that he has confirmation and a record of the sale. Basically, it acts as a regular credit card processing machine.

The Advantages of Using Your Cell Phone for Credit Card Processing

If you’re a business person or professional that is always on the go, you will come across situation where you have the potential to make the sale. The only problem is that you have no way of taking the order other than getting into contact with the potential buyer when you get back to your office, give instructions for online payments, or make an arrangement to meet with him.

The most obvious benefit of being able to process credit cards on the spot with your cell phone is that you can close the sale when the buyer is interested. In business, you can lose the sale if you have an excited buyer but you lose the ability to take the order. The ability to take orders on the fly has many different applications.

For example, there are people that do business in auctions, trade shows, or even in seminars. Using your cell phone to take credit card orders can be the best way to take orders when there is nothing else available. This can make your investment into auctions, trade shows, seminars, and other events more profitable.

You can also imagine how to take orders on the fly will help professionals such as photographers, consultants, and other service providers. Being able to close the sale will cut down on lost sales as you’ll be able to sell when the buyer is sold on the product or service.

Although it may sound like risky business to use your cell phone, the whole process is encrypted and you won’t have to worry about outside parties intercepting your orders and abusing the customer information. The whole process from validating the payment and transferring funds happens instantly.

The Disadvantages of Using a Cell Phone for Credit Card Processing

The biggest disadvantage of using your cell phone to take credit card order is theft. If your cell phone and machine gets stolen or lost, this can mean a lot of problems for you. If somebody knows how to use the machine and work with the application, it may lead to fraudulent charges.

Another disadvantage is that the processing fees to use this technology are more expensive than taking orders through traditional means. The prices have gone down over time but it is still more costly than accepting orders online. You do have to keep in mind that using this technology ensures that you get the sale on the spot rather than waiting and possibly losing the customer. To many people, this will be worth the cost.

A roadblock you may face is the buyer being hesitant about using this technology. Most customers will be unfamiliar about the concept of using your cell phone to take orders and not trust it. On the other hand, using this technology allows you to avoid carrying people’s credit card numbers for later processing. It also gives them instant confirmation of their order through text and email.

You can convince them that it is completely safe and works without any problems. You should stress how it is far safer and reliable to use this method rather than taking down their name, address, and credit card information on a piece of paper to put it through later.

The Summary

All in all, using your cell phone to process credit card orders opens up many doors for professionals and business people. They can safely take orders and secure the sake. So far the feedback on this technology has been positive. Many business people that have used this technology reported that they had no problems putting orders through and most didn’t have to deal with issues such as fraud.

The advantages of using this technology far outweigh the disadvantages. If you do business while you’re on the go, you should strongly consider investing in this service. There are many different companies that offer this service so you should do some research about the rates as well as the company’s reputation. Also read up on customer reviews to see if the company is reliable and the support is strong. That will ensure that you go with a company that can provide an excellent service.

My Bio:

About the Author: Mirsad Hasic is the webmaster and editor of best credit card deals, a site where you will learn how to pick a credit card that suits your current needs plus get valuable tips on how to reach credit card debt relief.

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Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.