Phone Credit Card Processing by marun585


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									               Phone Credit Card Processing: How Phone Processing Works

      Countless businesses all over the world make use of merchant accounts to
get accept cashless transactions for their services and goods. Phone credit card
processing, also called touch tone
credit card processing is the newest solution that allows businesses accept
payments using their smartphone as their virtual or point of sale swipe terminal.

      It can save you money and add more flexibility to your payment processing
system. Charge-On-Phone systems provides an alternative solution to traditional
merchant accounts that can be costly and impractical for small-scale businesses
with low sales volume.

      The cutting edge benefits being offered by smart phones via payment apps
and other industry experiments are sure to become the standard in coming years.

      Using your phone to collect payments provides your clients an alternative
form of payment since not all customers carry cash to pay for purchasing products
or services.

      Additionally statistics show that the initial reaction to cash only businesses is
a negative one for your customers, with associations with possible tax evasion, or
that you are “fly by night” operation or a “now-you-see-it-now-you-don’t” short
term exploitive business.

      But you don’t have to lose another customer because you cannot accept
credit cards. Nor do you need to carry around bulky credit card processing
terminals when your smart phone can now do the heavy lifting.

      This is technology at its best.

      More flexibility, more sales, more saved time, more growth.

                              How Phone Processing Works

      With a proficient credit card processing service, merchants can verify and
accept payment from both traditional and electronic checks, debit cards and all
major credit cards. Transactions are processed online 24/7 at anywhere in the

      The process will vary dependent upon your chosen provider, as apps,
software integration and phone capabilities will dictate your options.

      But the fundamentals are as follows…

                               Call In Payment Processing

      To initiate a transaction, first you have to key-in the service provider’s toll
free number on your touch-tone phone, be it a mobile hand phone or a landline. A

voice prompts will ask you to enter the customer’s credit card number, expiry date
of credit card and the amount of sales using your phone’s keypad.

      The transaction is processed virtually instantly, and an approval or denial is
prompted. If approved, sales amounts are automatically deposited, minus your
discount rate, into the merchant’s checking account within two (2) business days.
You can use a cheap credit card imprinter for issuance of receipts.

      It will create the traditional two-part carbon receipt with the customer’s
credit card imprinted on it; the original copy serves as a receipt and the other copy
is for your records.

      Other Functions (in addition to credit card sales processing) that can be done
over the phone include:

            Credit Card Refunds
            Void Transactions
            Authorization-only Transactions
            Monthly Statement Dictation (outlining credit card processing

      How much will you be expected to pay for a phone in processing system?
Here are a few fees you can expect: – (more or less)

      Transaction Fee:           $0.24
      Voice Authorization Fee:            $0.75
      Discount Rate:               2.27%    (Phone in processing discount rates are
higher than traditional point of sale swipe discount rates)
      One Time Setup:            $25.00
      Monthly Service/Support/Statement Fee:             $9.95

               It is also believed that there is neither any equipment nor software to
purchase, and most of all, no other additional fees to pay.

               Other processing companies offer zero costs on all transaction and
discount fees (like transaction fee, voice authorization fee, etc. hidden fees) and
instead charge a low $5/mo. service fee, but may ask a much higher rate up front
one-time setup fee.

               In choosing a processing service, take into consideration its average
approval rating, costs you will incur per month, account setup time and the account
startup cost.

               Accessible customer service available to answer inquiries 24/7. The
support service should include multiple methods of contact including email, instant
messaging, texting through cellular phones, hand phone or landline telephone. You
should expect your support solution to be quick to respond to any query, help or
uncertainty, and likewise, provide useful information.

      Credit card processing has never been so affordable, and phone processors
are making it more convenient than ever.

      Phone credit card processing allows a great deal of expansion for small
businesses. It can take transactions anytime at anywhere.

      This is a cost effective way to accept payments since there is just one
reasonable monthly fee to pay for all credit card processing activity. A traditional
merchant adapting a wireless credit card machine suffers from several monthly
fees (add the cost of wireless terminal) that add up to overhead costs which can be
hazardous to small merchants.

      Additionally, the evolution of mobile commerce is an industry trend that is
growing by leaps and bounds.

                    The Future of Phone Processing – Smart Phones

      If your needs are more for mobility over cost, smart phones are developing a
number of solutions that offer flexible and easy credit card swiping capability.
There even exist card swiping plugins that can attached to your smart phone,
compatible with iphones, droids, and other popular devices that allow for remote
point of sale card swipe functionality.

      Additionally, a number of apps have been developed that offer to function as
your 3rd party provider of processing in return for a percentage of your transaction
amount, while security VeriSign SSL Certificate for processing has been integrated
AVS (Address Verification Service) can be employed for added protection.

      So, regardless of your particular industry, if you are in pursuit of value,
mobility, flexibility, and professionalism than the future looks bright.

      Very soon you will be making a majority of your credit card purchases using
phone credit card processing solutions that were just recently not even dreamed of
as possible.

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