![\"Best](\"/images/content/5b1/16b7a51ee47772b8b456c/300_-200-)
By now, most people are familiar with Square, the company behind the small white credit card reader that plugs into smartphones and tablets through a headphone jack.
\r\nBut did you know there are lots of other options that do the same thing, sometimes for less money?
\r\nIf you regularly need to take payments on the go, it’s worth your time to look into all the options before choosing your service.
\r\nRelated Article: Seeing Green: 7 Payment Processing Solutions for Small Businesses
\r\nTaking credit cards using your smartphone requires, at a minimum, a payment application and an account with a processing company. Credit card readers are actually optional for smartphone processing, but using one may keep your costs down.
\r\nThese days, almost all processing companies can offer mobile processing. You’ll be able to use the processor’s payment app to securely take credit cards without special equipment.
\r\nThere are lots of options when it comes to credit card readers for smartphones. Most commonly, the reader connects to your phone using the headphone jack, but Bluetooth models are also available. Other options offer a full PIN pad if you accept (or want to accept) debit cards.
\r\nReaders almost always accept magnetic stripe cards, but some of the newer ones let you take chip credit cards and/or contactless payments like Apple Pay as well.
\r\nIt’s important to note that the October 2015 chip card liability shift does apply to businesses that take credit cards with a mobile phone. If you accept a chip card but run it as a magnetic strip card because you don’t have a chip-capable reader, you’re liable if there’s fraud.
\r\nIf you’re new to smartphone processing and haven’t purchased a reader yet, it’s worth the money to get a chip-capable reader from the start. If you already have a magstripe reader, you may want to consider upgrading.
\r\nSome card readers are universal, and will work with many different smartphones and payment apps. Ingenico, Verifone, ePN, and AnywhereCommerce provide readers that work with multiple processors, and the variety of models ensures that you can pick what will work for you.
\r\nWith so many choices on the market, an independent smartphone card reader directory can provide helpful information when researching readers.
\r\nOther readers are proprietary, meaning they can only work with the company who offers it. Square’s readers are proprietary, as are the readers available from competitors FreshBooks, PayPal and Intuit.
\r\nCredit card readers are less expensive than other types of processing equipment, but you should still consider whether it will be a burden to purchase a new reader if you decide to switch processors. If the answer is yes, you’ll likely want to choose a universal reader instead of a proprietary one.
\r\nOf course, a major factor for small businesses is cost. Credit card readers have two costs associated: the cost of the reader itself, and the cost to actually accept cards.
\r\nThe actual readers are generally not very expensive. Some are offered free of charge by processors, while ones that have to be purchased are often around $50. Models with more features (like PIN pads and contactless capabilities) are more expensive, but almost all readers are under $150.
\r\nRelated Article: EMV 101: What You Need to Process Credit Cards Today
\r\nCosts for processing transactions through a smartphone work the same as transactions processed in-store. Processors commonly charge using a flat rate model, a tiered model, or an interchange plus model.
\r\nFlat rate pricing is what Square and similar companies like FreshBooks and PayPal offer. With flat rate pricing, your costs stay the same no matter what kind of card is used. Flat rate smartphone processing can be a great option for a specific set of circumstances. It might be right for you if:
\r\nIf neither of those criteria applies, you can likely save money by choosing a non-flat rate smartphone processing solution. Flat rate processing looks simple, but simplicity shouldn’t be confused for a low cost.
\r\nOptions for flat rate smartphone processing:
\r\nTiered pricing is an opaque and often expensive option. Processors that use tiered pricing will quote “qualified” rates for transactions, and may charge you more for any transaction that they decide doesn’t qualify. It’s in your best interest to avoid any processor using tiered pricing.
\r\nInterchange plus pricing is the most transparent model. A processor that uses interchange plus pricing will pass the wholesale cost of processing to you, and charge a small markup separately. If you don’t fit the criteria for businesses that will benefit from flat rate processing, you should consider an interchange plus option.
\r\nMany processors can offer interchange plus pricing, so you can get the best of both worlds: low-cost processing, and universal card readers that you can take with you even if you switch processors in the future. To find a processor that offers interchange plus, you can use a comparison service. Searching online for a credit card processing comparison site will give you options for free tools to assist you.
\r\nOptions for interchange plus smartphone processing:
\r\nRelated Article: 5 Things Most Small Businesses Don’t Know About Payment Processing
\r\nNote that these smartphone options could also be offered by a tiered pricing processor, so be sure to choose a processor who offers interchange plus before purchasing the card reader.
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Best Low Volume Processor - PayPal
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Retail Credit Card Processors - First Data
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Lowest Processing Fees - Square
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\n","docType":"article","guid":"articles_894c50c570269e70eea7d68f7d44807c","lastModified":"2016-07-05T19:00:00.000Z","published":"2016-07-05T19:00:00.000Z","structuredData":null,"subtitle":null,"template":"legacy","title":"Beyond Square: Taking Credit Cards with Your Smartphone","type":"article","author":{"avatar":null,"bio":"Ellen Cunningham is a writer first and foremost. She loves the challenge of turning dry, complex topics into readable articles, which makes her a perfect fit for the credit card processing industry. She is the Marketing Manager for CardFellow, the leading resource for businesses seeking the right credit card processing solution. Ellen enjoys helping people understand their options for taking cards so that they can make informed decisions.\r\n\r\nWhen she's not writing about credit card processing, she can be found cycling beautiful trails in New England or hanging upside down in trapeze class.","name":"Ellen Cunningham","image":null,"slug":null,"social":{"facebook":"http://www.facebook.com/cardfellow","linkedin":"https://www.linkedin.com/company/cardfellow/","twitter":"https://twitter.com/cardfellow","website":"http://www.cardfellow.com"},"status":"enabled","title":null,"type":"Old BDC Member","user":{"imagePath":"https://staging.business.com/images/uploads/user/profile/79312a6d3da7730575991c6d9a99b6e40ca55.jpg","profile":{"company":"CardFellow.com","jobTitle":"Marketing Manager","website":"https://www.cardfellow.com"}}},"breadcrumbs":null,"channels":{"primary":{"name":"Finance","slug":"finance"},"sub":{"name":"Financial Solutions","slug":"financial-solutions"}},"meta":{"robots":"index, follow","description":"Smartphone processing was popularized by Square, but these days there are lots of options. Here are some choices for taking cards on the go.","title":"Taking Credit Cards with Your Smartphone - business.com"},"parsedContent":{"toc":[],"json":[{"component":"p","children":["By now, most people are familiar with Square, the company behind the small white credit card reader that plugs into smartphones and tablets through a headphone jack."]},{"component":"p","children":["But did you know there are lots of other options that do the same thing, sometimes for less money?"]},{"component":"p","children":["If you regularly need to take payments on the go, it’s worth your time to look into all the options before choosing your service."]},{"component":"p","children":[{"component":"em","children":["Related Article:"]}," ",{"component":"Link","props":{"href":"http://www.business.com/credit-card-processing/7-payment-processing-solutions-for-small-businesses/"},"children":["Seeing Green: 7 Payment Processing Solutions for Small Businesses"]}]},{"component":"h3","children":[{"component":"em","children":["Smartphone Processing Basics"]}]},{"component":"p","children":["Taking credit cards using your smartphone requires, at a minimum, a payment application and an account with a processing company. Credit card readers are actually optional for smartphone processing, but using one may keep your costs down."]},{"component":"p","children":["These days, almost all processing companies can offer mobile processing. You’ll be able to use the processor’s payment app to securely take credit cards without special equipment."]},{"component":"h3","children":[{"component":"em","children":["Card Readers"]}]},{"component":"p","children":["There are lots of options when it comes to credit card readers for smartphones. Most commonly, the reader connects to your phone using the headphone jack, but Bluetooth models are also available. Other options offer a full PIN pad if you accept (or want to accept) debit cards."]},{"component":"p","children":["Readers almost always accept magnetic stripe cards, but some of the newer ones let you take chip credit cards and/or contactless payments like Apple Pay as well."]},{"component":"h3","children":[{"component":"em","children":["Chip Cards and Smartphone Processing"]}]},{"component":"p","children":["It’s important to note that the October 2015 chip card liability shift does apply to businesses that take credit cards with a mobile phone. If you accept a chip card but run it as a magnetic strip card because you don’t have a chip-capable reader, you’re liable if there’s fraud."]},{"component":"p","children":["If you’re new to smartphone processing and haven’t purchased a reader yet, it’s worth the money to get a chip-capable reader from the start. If you already have a magstripe reader, you may want to consider upgrading."]},{"component":"h3","children":[{"component":"em","children":["Choosing a Reader"]}]},{"component":"p","children":["Some card readers are universal, and will work with many different smartphones and payment apps. Ingenico, Verifone, ePN, and AnywhereCommerce provide readers that work with multiple processors, and the variety of models ensures that you can pick what will work for you."]},{"component":"p","children":["With so many choices on the market, an independent smartphone card reader directory can provide helpful information when researching readers."]},{"component":"p","children":["Other readers are proprietary, meaning they can only work with the company who offers it. Square’s readers are proprietary, as are the readers available from competitors FreshBooks, PayPal and Intuit."]},{"component":"p","children":["Credit card readers are less expensive than other types of processing equipment, but you should still consider whether it will be a burden to purchase a new reader if you decide to switch processors. If the answer is yes, you’ll likely want to choose a universal reader instead of a proprietary one."]},{"component":"h4","children":[{"component":"em","children":["Pricing"]}]},{"component":"p","children":["Of course, a major factor for small businesses is cost. Credit card readers have two costs associated: the cost of the reader itself, and the cost to actually accept cards."]},{"component":"h4","children":[{"component":"em","children":["Readers"]}]},{"component":"p","children":["The actual readers are generally not very expensive. Some are offered free of charge by processors, while ones that have to be purchased are often around $50. Models with more features (like PIN pads and contactless capabilities) are more expensive, but almost all readers are under $150."]},{"component":"p","children":[{"component":"em","children":["Related Article:"]}," ",{"component":"Link","props":{"href":"http://www.business.com/credit-card-processing/emv-101-what-you-need-to-process-credit-cards-today/"},"children":["EMV 101: What You Need to Process Credit Cards Today"]}]},{"component":"h4","children":[{"component":"em","children":["Transactions"]}]},{"component":"p","children":["Costs for processing transactions through a smartphone work the same as transactions processed in-store. Processors commonly charge using a flat rate model, a tiered model, or an interchange plus model."]},{"component":"h4","children":[{"component":"em","children":["Flat Rate"]}]},{"component":"p","children":["Flat rate pricing is what Square and similar companies like FreshBooks and PayPal offer. With flat rate pricing, your costs stay the same no matter what kind of card is used. Flat rate smartphone processing can be a great option for a specific set of circumstances. It might be right for you if:"]},{"component":"ul","children":[{"component":"li","props":{"style":{"textAlign":"left"}},"children":["Your average transaction is approximately $10 or less"]},{"component":"li","children":["You process less than approximately $3,000/month in credit cards"]}]},{"component":"p","children":["If neither of those criteria applies, you can likely save money by choosing a non-flat rate smartphone processing solution. Flat rate processing looks simple, but simplicity shouldn’t be confused for a low cost."]},{"component":"p","children":["Options for flat rate smartphone processing:"]},{"component":"ul","children":[{"component":"li","children":["Square"]},{"component":"li","children":["PayPal Here"]},{"component":"li","children":["FreshBooks Mobile"]},{"component":"li","children":["Intuit GoPayment"]}]},{"component":"h4","children":[{"component":"em","children":["Tiered"]}]},{"component":"p","children":["Tiered pricing is an opaque and often expensive option. Processors that use tiered pricing will quote “qualified” rates for transactions, and may charge you more for any transaction that they decide doesn’t qualify. It’s in your best interest to avoid any processor using tiered pricing."]},{"component":"h4","children":[{"component":"em","children":["Interchange Plus"]}]},{"component":"p","children":["Interchange plus pricing is the most transparent model. A processor that uses interchange plus pricing will pass the wholesale cost of processing to you, and charge a small markup separately. If you don’t fit the criteria for businesses that will benefit from flat rate processing, you should consider an interchange plus option."]},{"component":"p","children":["Many processors can offer interchange plus pricing, so you can get the best of both worlds: low-cost processing, and universal card readers that you can take with you even if you switch processors in the future. To find a processor that offers interchange plus, you can use a comparison service. Searching online for a credit card processing comparison site will give you options for free tools to assist you."]},{"component":"p","children":["Options for interchange plus smartphone processing:"]},{"component":"ul","children":[{"component":"li","children":["Clover Go"]},{"component":"li","children":["ePN Mobile"]},{"component":"li","children":["AnywhereCommerce"]},{"component":"li","children":["Ingenico"]},{"component":"li","children":["Verifone/PAYWare"]},{"component":"li","children":["TSYS MobilePASS"]}]},{"component":"p","children":[{"component":"em","children":["Related Article:"]}," ",{"component":"Link","props":{"href":"http://www.business.com/credit-card-processing/5-things-most-small-businesses-dont-know-about-payment-processing/"},"children":["5 Things Most Small Businesses Don’t Know About Payment Processing"]}]},{"component":"p","children":["Note that these smartphone options could also be offered by a tiered pricing processor, so be sure to choose a processor who offers interchange plus before purchasing the card reader."]},{"component":"p","children":[" "]},{"component":"p","props":{"style":{"clear":"left"}},"children":[{"component":"picture","props":{"className":"alignleft thumb"},"children":[{"component":"source","props":{"srcSet":"/images/content/5b1/16b7a51ee47772b8b456c/300_-200- 300w, /images/content/5b1/16b7a51ee47772b8b456c/150_-100- 150w, /images/content/5b1/16b7a51ee47772b8b456c/75_-50- 75w","sizes":"(min-width: 870px) 150px, (min-width: 400px) 38vw, 38%"}},{"component":"img","props":{"src":"/images/content/5b1/16b7a51ee47772b8b456c/150-100-","alt":"Best Low Volume Processors","width":"150","height":"100","data-content-img-id":"5b116b7a51ee47772b8b456c"}}]}]},{"component":"p","children":[{"component":"Link","props":{"href":"/reviews/paypal-here-mobile-credit-card-processing/","rel":"noopener external"},"children":["Best Low Volume Processor"]}," - PayPal"]},{"component":"p","children":[" "]},{"component":"p","props":{"style":{"clear":"left"}},"children":[{"component":"picture","props":{"className":"alignleft thumb"},"children":[{"component":"img","props":{"src":"/images/content/5b1/16ae51039ebe3628b456d/150-150-","alt":"First Data","width":"150","height":"150","data-content-img-id":"5b116ae51039ebe3628b456d"}}]}]},{"component":"p","children":[{"component":"Link","props":{"href":"/reviews/first-data-credit-card-processing/","rel":"noopener external"},"children":["Retail Credit Card Processors"]}," - First Data"]},{"component":"p","children":[" "]},{"component":"p","props":{"style":{"clear":"left"}},"children":[{"component":"picture","props":{"className":"alignleft thumb"},"children":[{"component":"source","props":{"srcSet":"/images/content/5b1/16a3151ee47782b8b456c/300_-200- 300w, /images/content/5b1/16a3151ee47782b8b456c/150_-100- 150w, /images/content/5b1/16a3151ee47782b8b456c/75_-50- 75w","sizes":"(min-width: 870px) 150px, (min-width: 400px) 38vw, 38%"}},{"component":"img","props":{"src":"/images/content/5b1/16a3151ee47782b8b456c/150-100-","alt":"Square","width":"150","height":"100","data-content-img-id":"5b116a3151ee47782b8b456c"}}]}]},{"component":"p","children":[{"component":"Link","props":{"href":"/reviews/square-mobile-credit-card-processing/","rel":"noopener external"},"children":["Lowest Processing Fees"]}," - Square"]},{"component":"p","children":[" "]},{"component":"p","children":[" "]},{"component":"p","children":[" "]}]},"resource":null,"sponsorship":null,"thumbnail":{"path":null,"caption":"Utah778 / Getty Images","isBlurred":true},"bestPicks":null},"related":{"relatedArticles":[{"title":"Beyond Square: Taking Credit Cards with Your Smartphone","canonical":"https://www.business.com/articles/beyond-square-taking-credit-cards-with-your-smartphone/","slug":"beyond-square-taking-credit-cards-with-your-smartphone","thumbnail":"https://www.business.com/images/channel/finance.jpg","dek":"Smartphone processing was popularized by Square, but these days there are lots of options. Here are some choices for taking cards on the go.","lastModified":"2016-07-05T19:00:00Z","published":"2016-07-05T19:00:00Z","sponsored":false},{"title":"Payments Suck: Breaking Down the Current Landscape of Payment Processing","canonical":"https://www.business.com/articles/payments-suck-breaking-down-the-current-landscape-of-payment-processing/","slug":"payments-suck-breaking-down-the-current-landscape-of-payment-processing","thumbnail":"https://www.business.com/images/channel/finance.jpg","dek":"Mobile payments present a world of opportunities, yet despite the possibilities, the payment industry has yet to catch-up. 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Learn the offenders inside.","lastModified":"2016-06-22T15:00:00Z","published":"2016-06-22T15:00:00Z","sponsored":null},{"title":"10 Credit Card Payment Services for Small Business Owners","canonical":"https://www.business.com/articles/10-credit-card-payment-services-for-small-business-owners/","slug":"10-credit-card-payment-services-for-small-business-owners","thumbnail":"https://www.business.com/images/channel/finance.jpg","dek":"There thousands of business decisions that small business owners have to make. One of the most important, however, is which service they’ll select as their credit card payment processing options.","lastModified":"2016-06-14T14:00:00Z","published":"2016-06-14T14:00:00Z","sponsored":false},{"title":"Payments Suck: Breaking Down the Current Landscape of Payment Processing","canonical":"https://staging.business.com/articles/payments-suck-breaking-down-the-current-landscape-of-payment-processing/","slug":"payments-suck-breaking-down-the-current-landscape-of-payment-processing","thumbnail":"https://staging.business.com/images/content/56f/41d4e3287b11f292ee890/1500-0-","dek":"Mobile payments present a world of opportunities, yet despite the possibilities, the payment industry has yet to catch-up. 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","slug":"best-pos-systems","lastModified":"2021-03-17T17:33:00Z"}],"relatedSponsoredArticles":null}},"pageContext":{"displayModified":"2016-07-05T19:00:00.000Z","template":"legacy","title":"Beyond Square: Taking Credit Cards with Your Smartphone","meta":{"robots":"index, follow"},"docType":"articles","slug":"beyond-square-taking-credit-cards-with-your-smartphone","canonical":"https://staging.business.com/articles/beyond-square-taking-credit-cards-with-your-smartphone/","skipTOC":false}},"staticQueryHashes":[]}
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![\"Square\"](\"/images/content/5b1/16a3151ee47782b8b456c/300_-200-)