In a United States bank survey of over 2,000 Americans, 50% of the respondents revealed they hardly carried cash around. Over 76% of them admitted they still carried money in their wallets but said it was never more than $50. To accommodate this marketplace, mobile merchants use card swipers or mobile credit card readers for phones when accepting credit card payments on the go.
Data shows that younger generations are moving away from spending cash altogether. With many claiming they “rarely or never” carry cash around. Having a merchant account to accept mobile payments via a phone or tablet is a must in today’s business environment.
It is not surprising that people between the ages of 18-35 are the ones leading the charge to ditch physical cash for credit cards and digital payments.
What is a bit surprising is that the older generation is slowly following suit. However, some admit they still carry cash around for emergencies and unexpected purchases.
These older respondents confessed that they spent more money when they had physical cash. And agreed that purchases made by credit card helped them to be more prudent with their finances.
With the ever-growing popularity of card and digital payments, it has become a real possibility that physical cash transactions might disappear one day.
This projection has been even more encouraged by the ever-evolving health crisis that has recently hit the world stage. It has also raised concerns about hygiene, with many Americans opting for plastic over paper money.
Statistics obtained by the Travis Credit Union polled by 2,000 respondents said they no longer felt comfortable using banknotes that had exchanged hands multiple times. 58% of them went on to admit that they would not go back to using cash, even if the COVID-19 pandemic ended.
Technology Has Made It Easy
With fears that banknotes will encourage the spread of coronavirus, more people are considering safer alternatives to conducting transactions. The good news is that technology has made several opportunities available and mobile merchant service providers are able to accommodate as needed.
For a business owner looking to cash in on this development, having a mobile credit card reader for a phone has never been more important.
Traditionally, most mobile merchants like hairdressers, electricians, plumbers, carpenters, mechanics, food truck owners, barbers, and makeup artists take cash over credit card payments on any day of the week. A mobile card swiper or mobile card reader will do the trick!
These types of small business owners are never keen on accepting payments via larger POS systems or old-fashioned credit card terminals because these machines are high-priced, bulky, and not exactly user-friendly. Additionally, some merchant accounts come with long-term commitments that are not best suited for these small business entrepreneurs.
But with recent technology, it is now possible for small-scale business owners to convert everyday devices like tablets and smartphones into a portable point of sale system with a mobile card swiper or a credit card reader for phones.
What to Know – Credit Card Card Readers for Phones
A mobile card reader for a phone is a small device that can be plugged into a tablet or smartphone from the headphone port or connected via Bluetooth.
After installing a credit card reader for a phone app, all that is required is reliable Wi-Fi or a mobile network connection and it is ready to run.
This tiny technology has been a lifesaver for many individuals including nightshift cab drivers and even food sellers at a music festival. Mobile credit card readers literally allow merchants to conduct transactions on the go.
How Do Mobile Card Readers Work?
Credit card readers for phones come with high-level encryption that allows you to connect via Wi-Fi or mobile networks to accept card payments.
Once a mobile card swiper device decodes a customer’s card information, it processes the payment using Wifi, GSM, or GPRS technology. The transaction is eventually completed with authorization from the bank that issued the credit card.
As soon as this is done, a percentage rate and transaction fee are accessed and the card payment eventually shows up in the merchants’ bank account within a few business days.
Why Mobile Merchants Need a Mobile Card Reader
Long wait times: Customers do not like waiting in line for too long because it puts them off. This is where mobile line-busting with a credit card reader comes in.
A card reader removes the challenge of having customers endlessly wait in line. It also takes the pressure off the employee in a busy environment by allowing the card info to be either taped or swiped, as opposed to entering the card information manually into the device.
More Revenue: A card reader for Android and iPhones increases your chances of making more money by up-selling and cross-selling.
For instance, a customer can buy a shampoo bottle from a hair salon and then get a hairdresser’s recommendation to also purchase a hair masque.
Online Record Keeping: With a credit card reader, a business owner has access to all transaction records and this makes balancing the books rather easy. Occasionally, you can have this data fed into your favorite accounting software.
On the other hand, sharp-minded businesses can also use this to generate more revenue. For example, by looking at online records, a skin therapist can contact a customer about a follow-up skincare procedure.
Customer Value: When businesses allow customers to choose their methods of payment acceptance, it speaks volumes about customer value.
By offering a wide range of payment options, business owners satisfy a bigger pool of customers. Millennials particularly see cash payments as old-fashioned and can leave a negative online review because of it.
Customer Retention: Smooth payment procedures go a long way in improving customer satisfaction. And when customers have a memorable experience, they always want more.
By accepting payment with a credit card reader for a phone, business owners occasionally get to meet customers outside of their physical offices and this adds a special touch.
Customers love being pampered and treated like royalty. This portable means of payment acceptance allows this unique interaction and can often help businesses retain customers and get referrals easily.
Business Protection: Most small businesses do not want to use card readers because of the transaction costs and monthly fees they have to pay. But keeping physical cash also comes with its own set of complications as well.
Other cumbersome issues for merchants handing cash include looking for the correct change during busier work hours, potential theft, and employee fraud.
Credit card readers offer more options and better protection than cash-only businesses. It also helps business owners save a sizable amount of time they would have spent counting money or reconciling accounts.
Contactless Payments: In the wake of a global health crisis, contactless transaction options have become a necessity and card readers allow us to do just that.
Even though some outdated mobile card readers support card swipes only, most newer readers offer contactless transaction options that are done with EMV or chip cards. The customer only needs to tap the card on the reader or wave it in front of the mPOS device for the transaction to be completed.
Why EMV Matters to Business Owners
EMV is the golden standard for credit card security. These types of cards come with small computer chips that encrypt bank details each time they are used.
This makes EMV cards far more secure than traditional credit cards with magnetic stripes. These cards are easily compromised and the cardholding information can be readily copied by hackers.
When processing an EMV transaction with a card reader, insert the card vertically, that is chip first, instead of swiping it across like a traditional credit card. More intricate chip cards do not require any form of contact.
Customers have total trust in card readers that accept EMV payments. It means you are abiding by global security standards and protecting them from fraud. Shoppers always return to where they feel safe and protected.
Call today and inquire about our free card reader for phone offerings. Depending on your business type and monthly volume projections, you could be accepting credit payments in minutes and receive your card reader within a few days. SecureGlobalPay, payment processing solutions that make sense!