Mobile payment credit card readers feature card-swiping equipment that plugs into a smartphone and a user interface app that allows vendors to process payments, according to PC World. Users set up accounts with the provider of the mobile card reader and can then accept payments via credit and debit cards. The card reader provider charges a small fee for all transactions processed through their equipment. These fees range from 1 to 3 percent, according to PC World.
There are several different providers of mobile card readers, each with their own benefits and disadvantages. Individuals interested in purchasing a mobile card reader should consider several aspects of the process in order to make a decision, explains Business Bee. Smartphone compatibility, user interface, fees, and merchant accounts are all important aspects to consider that vary amongst the leading card reader providers.
Those comparing mobile card reader provides should close examine provider pricing structures, advises Digital Trend. There can be hidden fees and high charges for occurrences such as non-sufficient funds or card inquiries. Another aspect to consider is which conditions could cause the provider to freeze a merchant account. Some providers have threshold limits or red flag instances that could cause an instant account freeze.