So, I remind you that there is:
- Internet acquiring ;
- trade acquiring ;
- mobile acquiring.
The latter, but not the least, will be discussed in today’s article.
Translated from English, the word “acquiring” sounds like “acquire” something. A beautiful term means a well-known way of receiving a service or a desired product using a payment card and terminal . Well-known to many, the option is actively used in almost all retail chains, gas stations, etc. A convenient and practical method eliminated the need to carry extra cash, worry about the amount of money in your wallet, going shopping, on vacation or on a business trip.
More modern mobile acquiring appeared a few years ago in the United States based on Square’s smartphone app. It is a non-cash payment system in which all transfers from payment cards are made using an improvised gadget with any operating system. To work, you just need an additional card reader .
Favorable tariffs of banks for mobile acquiring
Next, I will tell you about tariffs in leading banks that provide mobile equalization service.
Experts rightly believe that mobile acquiring is the future of settlements in trade. It does not require the purchase of expensive equipment, installation or staff training, unlike merchant acquiring. TD Routing Number To implement the system, you only need a smartphone, a tablet with Internet access and an MPOS terminal.
It is a miniature version of a terminal for reading information from a payment card, which connects to a smartphone using:
USB cable through the corresponding connector;
through the audio jack of the headphone mini-jack;
using blue-tooth technology.
The most economical and versatile option is mini-jack products. More expensive from Apple, plugged in via USB, require strict certification from the manufacturer. The safest devices are those that connect to the gadget via Blue-tooth for their ability to fully authorize a payment card and enter a PIN code on a separate device.
All the costs of working with mobile acquiring for entrepreneurs include:
The purchase of a smartphone or tablet with access to the Internet (today everyone has them).
Purchase or free transfer of a mini-terminal.
The cost of paying for Internet services according to the tariffs of the provider.
Bank commission for making payments.
Information processing from the MPOS terminal is performed by a pre-installed program. For its functioning, the type of operating system does not matter: AppleiOS or Android.
hanks to the new technology, the calculation of the buyer and the seller becomes possible almost anywhere with the Internet connected: in a taxi, online store, when meeting in a cafe or even a city square. The card is inserted with magnetic tape or chip into the reader of the MPOS terminal. Full information is reflected on the screen of the gadget in the involved application. To confirm the consent to transfer funds, the buyer receives an SMS with a code or a fingerprint is required (in more modern smartphones). These methods are a certain degree of protection, which increases control over expenses and withdrawn amounts.
After the transaction and the transfer of funds to the seller’s account, in order to comply with the reporting, confirm the fact of the transaction, the electronically generated receipt arrives on the mobile phone or the specified mail of the buyer.
From the side, the whole operation seems as quick and convenient as possible for all parties to the transaction. But in a few minutes a whole chain of certain events takes place:
The buyer enters their personal data in the mobile application.
The processing center of the bank in a few seconds processes the received information for correctness, the possibility of a transaction.
The acquirer bank sends the correct request to the appropriate payment system.
The system works with the card-owner bank, requesting the possibility of making a payment.
If the answer is yes, the processing center notifies both parties of the result by sending an SMS message.
The security and accuracy of the financial transaction are the responsibility of the payment system, which is selected by the seller as a working service. Currently only MasterCard and VISA cards that have successfully passed certification are allowed for transactions.
Pros of mobile acquiring for entrepreneurs and individuals
The new technology is steadily gaining momentum and is used in many areas of small business, including trade, the provision of individual services at home. This has been made possible thanks to a number of advantages:
The compact size of the MPOS terminal makes it easy to carry in a regular bag.
The device is not tied to a stationary place, making it possible to pay on the street, indoors, provided a stable signal of Internet connection. Very convenient for online stores.
The quality and conditions of customer service are being improved, which has a positive effect on the level of sales and overall profit.
There is no need for collection services, the risk of theft, receiving false bills is reduced.
Most customers positively assess the availability of such a miniature terminal from an online store seller. They get the opportunity to quickly pay for their purchase without the time involved in finding an ATM. This increases the importance of the entrepreneur, makes him more attractive to customers.
Disadvantages of Mobile Acquiring
The mobile acquiring system is only gaining momentum. The service remains at the level of new and not entirely clear to the average layman. Its rapid development is hindered by some disadvantages:
Distrust of cardholders to such a simple payment scheme.
Almost complete lack of advertising support.
Low security and deal protection for both buyer and seller.
Dependence on Internet speed, signal strength, which creates a problem for working outside of large cities.
To eliminate them, it will take time, as well as constant work on your business reputation by the seller of goods.
How to connect mobile acquiring
The suppliers of this service are some banks and special processing companies acting as intermediaries.
The connection procedure is not difficult, but it takes time:
It is necessary to choose an intermediary or a bank with which cooperation will take place. Previously, you should study the feedback on the work, the legality of finding an intermediary company (processing center). You may need to open a bank account for completeness.
A package of documents is being prepared, the list of which is regulated by the processing company and / or the bank.
An agreement on servicing payments is concluded. It indicates the rating, features of work and type of equipment, the responsibility of the parties.
An MPOS terminal is purchased. US bank routing number The choice of model depends on the wishes and technical capabilities of the future seller. Some companies include them in the cost of the tariff, offering them for free. Some models are available for sale on Taobao and eBay trading floors, but must be certified and approved for use by the processing company and / or bank.
The mobile application is installed and activated. Often such a service is provided by a bank or intermediary. At the same time, a little training and parameter adjustment is provided.
If you work directly with a provider bank of mobile acquiring services, you can reduce the cost of paying a commission for cash flow.
Service Development Prospects
Financial experts believe that the share of mobile acquiring among all types of payment through terminals can reach 40% by 2021. Having appeared on the market in 2011, it is steadily gaining momentum due to its convenience and accessibility. The service delivery process includes more and more reputable banks with a good reputation.
For thousands of small entrepreneurs, mobile acquiring is a great way to work with bank cards, legally conduct business and settlements with customers. Considering the compactness of the MPOS terminal and its low price, this is the most acceptable option for saving costs for any enterprise. Its practicality and benefits are confirmed by the massive transition of European medium and small businesses to settlements through a miniature terminal and gadget.