iPhone Credit Card Processing Apps

What You Need to Know About iPhone Credit Card Processing

iphone credit card processingWe are addicted to our phones and smart phone technology like the “iphone” is getting better and  better every minute.   It only makes sense that merchants use a iPhone credit card processing application too, right…?

Your mobile phone is your life.  It stores your contacts, your calendar and your email.  It’s the main method through which you communicate with family and friends … in fact I know people who can’t maintain friendships with other who don’t text or BBM.  It’s your connection to the real world through the Web… where you keep in touch with current events through Facebook and Youtube.  The morning your wireless telecom company had a 2 hour outage was the worst day of your life… you felt scared, out of touch, you had no idea what was going on.  Statistics show that you are 80% more likely to return home to retrieve a forgotten phone over a forgotten wallet.  And with the introduction of hundreds of new applications each day designed to make your life easier, it’s no wonder why you can’t live a day without your phone.

iPhone Credit Card Processing Applications (or better know as “Apps”)

verifone iphone credit card processingSo it only made sense for Verifone, the terminal hardware manufacturer to develop the Payware mobile application for the iPhone.  This ingenious app loaded on your iPhone transforms your mobile phone into a portable point of sale terminal that fits in your pocket.  The card reader sleeve is available at Apple stores slides on and even comes with an attached stylus pen.  Impressed yet?  Check out how it works.

Your customer makes a purchase, you activate the app.  You key in the amount of the transaction and you slide the customer’s credit card through the sleeve.  Your customer uses the stylus pen to sign the screen of your iPhone and the receipt is emailed to your customer.  Everyone walks away happy.

iPhone Credit Card Processing Advantages

The advantages are obvious.  Not only is this a portable wireless point of sale device that is small enough to bring everywhere… rumour has it that the app and the sleeve are free, so long as you commit to a 2 year contract and an activation fee.  And, it now ensures that you are able to process electronic transactions that carry a lower interchange than their keyed (or standard) transaction counterparts.  The convenience this product offers is only rivalled by the obvious cool factor (walk into any Apple store and make a purchase, that’s what their sales associates are carrying around so it MUST be cool!)

iPhone Credit Card Processing Disadvantages

The disadvantages… well… first of all, you won’t be able to accept debit.  Because this device is not a certified pin entry device, Interac debit cards cannot be processed.  And the reality is, it’s unlikely that your customers are going to feel comfortable keying in THEIR PIN number onto YOUR phone.  And on that note, with the EMV liability shift around the corner (April 2011), it’s questionable how sustainable this new technology is.  All new credit cards over the last 2 years have been issued with chip and pin.  After the liability shift, if you are still accepting mag swipe transactions, you become responsible for any fraud related chargebacks.  And currently, there is only one known Acquirer who is offering this pos option… which limits your options when it comes to choosing an Acquirer.

But still…after weighing the pros and cons… you can’t get away from the fact that it’s pretty damn cool.

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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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