Mobile merchant accounts, or telephone processing of credit cards, are becoming the hit with professionals and tradespeople alike.
In fact, they are becoming the life blood for many lawyers, accountants, psychologists, plumbers, handymen, and others.
Why? First, accepting credit cards usually increases business by 20% or more from simply accepting this form of payment.
This statistic will change rapidly in today's credit crunch, and businesses and individuals alike will have less and less cash.
Buyers will not only want to use credit, in many circumstances they will have to use it.
If you don't offer credit cards as a payment option, they will go next door and buy from the professional or merchant who does offer it.
And you simply cannot afford to lose these sales.
Secondly, accepting credit cards eliminates a whole slew of headaches and expenses that go right to the bottom line.
For example, you can avoid issues with accounts receivable.
Get paid upfront, as in a retainer situation, or when the transaction is complete, and you don't have an account receivable issue.
This saves time, and the likelihood of having to wait months until you do so, and the costs associated with collections.
If the account goes bad, you end up either reducing the amount due to get paid, or just not ever getting paid.
And, if you have to take legal action, you lose even more.
What's the big deal with having a mobile merchant account? For one thing, you don't have to buy an expensive processing terminal.
While the cost of these are dropping, it's still usually $250-500 for a terminal.
And that terminal is stuck in one place, unless you spring for a wireless terminal which can set you back $850 or more.
So, a mobile account that works from a telephone or cell phone cuts that upfront expense.
(By the way, never lease a credit card processing terminal these days...
that made sense when they used to cost $1000 plus, but when you can get a terminal for under $200 it just doesn't make sense to go to this added expense.
) For professionals or tradespeople who perform their services away from their office or shop, a mobile merchant account can be a Godsend.
Imagine performing your service or selling your product, and, rather than having to accept only cash or a check, or, worse, give the customer a bill to pay later (say "account receivable"), you can easily receive immediate payment.
As mentioned before, that's not only good for you, but for your customer as well.
If you're a trade show or flea market vendor, just think of the convenience of this.
The way many vendors handle this is to take the customers credit card information, and then go back to their wired terminal.
If the card is declined, there is often nothing they can do to get payment.
Of course, the products they sold are gone.
This mobile option can apply to handy people, plumbers, carpenters, home inspectors, pest control companies, roofers, painters, cleaners, electricians, lawn services, snow plowers, and hundreds of other mobile services.
It also applies to professional services, whether they make "house calls" or are just too small an operation to warrant the expense of a terminal or virtual terminal.
These include solo or small office lawyers, insurance agents and brokers, doctors, dentists, psychologists, counselors, consultants, and whomever.
So, what does all this convenience and cost savings actually cost? While the costs vary, mobile merchant accounts seem to cost $0 -70 or so to apply (refunded if you're not accepted), and then usually a small monthly fee plus a percentage of each sale.
Per transaction fees vary, but you can usually count on paying 3-4%.
Other services are available with a higher monthly fee, but lower transaction rates.
There are quite a few options, most sellers requiring a mobile option seem to go with a low monthly fee that is fixed, as it's typically an easy program to get and use.
How tough is it to be accepted for telephone credit card processing? Easier than you might think.
It usually involves a simple application, and, with reasonable credit, most merchants or professionals can be accepted within 24 hours.