In today’s commercial climate, businesses of all sizes, whether they operate online, in-person or on a hybrid model, must have the capability to accept credit card payments.
As consumers, we have long been accustomed to swiping or tapping our plastic credit cards into, on or near merchants’ card readers. But in today’s increasingly mobile society, you might be wondering if there are ways to get paid by your customers that don’t require you to have a machine at all.
The status quo
Currently, most companies partner with a payment service provider to obtain a merchant account. This is where customer payments are held until the card network finishes processing the charges and the processor deposits the funds into the store’s business account.
Merchant account providers give businesses all of the software and hardware they need to read and process customer payments. This might include a contactless card reader and peripherals that aid in streamlining purchasing and inventorying such as barcode scanners and receipt printers.
But what if you would prefer to optimize the buying experience even further by eliminating the need for a smart terminal altogether?
In-person machineless credit card payments
Today’s payment service providers offer businesses a way to complete purchases without the need for standard card readers. This happens through the use of a payment processing app that can be easily downloaded onto the merchant’s smartphone.
The seller can securely input card details manually via this app. Or they can scan a QR code to make it possible for the payment to be made quickly and securely on-site.
A final option involves using a smartphone equipped with a payment processing app as a terminal to take a customer’s contactless payment from their own tap-to-pay contactless wearable device or phone.
Although no separate terminals or card readers are involved, the payment remains just as secure, fast and efficient and can take place anywhere.
Online machineless credit card payments
Most payment processing companies make it easy for you to accept customer payments on your website’s ecommerce platform. With a reputable gateway application, you can rest assured that the transaction will be secure from end to end because of the anti-fraud and identity verification measures that the provider has put in place.
If you want an option above and beyond your payment services provider, you can also obtain a hosted payment page. When customers are directed to this site, they encounter a secure location that can be configured to provide the same look, feel and brand voice contained on your website.
Another option is to send a secure payment link to your customer. This code can be embedded in a “buy now” button on your website or social media page or sent to your customer directly via email, text or SMS message.
Once the link or button is activated by the customer, they are directed instantly to a secure payment site into which they can enter their data. If you already have details stored on this buyer, you can even provide them with an invoice that has been auto-filled for even easier and more convenient completion.
Recurring payments
Another way to get paid by your customer without the need to have a contactless card reader occurs through implementation of the subscription or recurring billing model.
Now commonly seen throughout all types of companies, this arrangement allows you to set up regular withdrawals from your customer’s specified account on a set date and amount over a prescribed duration of time.
Recurring billing can be configured online, in-person or even over the phone with a virtual terminal application. The customer can change the deal at any time, and you must be transparent about the terms and conditions that bind the agreement.
A successful subscription arrangement leads to predictable payments, the ability for both parties to budget more accurately, reduced late payments, fewer errors and increased cash flow for the merchant. All of this occurs without the need for a smart terminal or any other type of card reader.
Currently, card-reading hardware remains a staple in many retail operations. It allows credit card payments to be taken securely and efficiently using a method which all customers are familiar with.
However, today’s technology also offers alternative ways that stores can collect the funds owed to them. Carefully review all of your options to arrive at an array of solutions that best meet your needs, and you can increase the likelihood that your invoices will be fulfilled in full and on time.
