Wireless Merchant Account

What they are. Wireless merchant accounts enable merchants to accept credit and debit card payments on portable terminals whenever their customers happen to be. Depending on the type of wireless credit card processing solution, the terminals may be using short- or long-range networks to transmit the payment processing information.

Types of Wireless Payment Processing Services. There are two groups of wireless solutions:

• Long-Range Wireless Service. Long-range wireless solutions use cell phone-type of network connectivity for transmitting payment information. It works everywhere network service is available. It is perfect for businesses that regularly accept payments at their customers' locations.
• Short-Range Wireless Service. Short-range merchant processing solutions use the same connectivity services that cordless phones use. The credit card processing device can be operational within several hundred feet of the location of its base unit which is connected to a phone line. The short-range wireless card processing solution is perfect for merchants with limited portability requirements, e.g. merchants who need payment processing services at different locations on their premises.

Advantages of Wireless Processing. There are several main advantages to using portable credit card processing solutions.

• Additional Processing Options. A mobile credit card processing service allows you to immediately accept payments at trade shows, conventions, or at your customers' premises.
• Increased Security. With a wireless terminal the customer remains in possession of the card at all times.
• Reduced Processing Costs. Because wireless transactions are processed in a card-present environment, they generally receive the best possible rates.

Disadvantages of Wireless Processing. There are a couple of disadvantages of using portable processing solutions that you need to be aware of.

• Equipment Cost. The price of wireless terminals is significantly higher than that of regular point-of-sale terminals and can be the deciding factor in your decision, especially if your processing volumes are low.
• Network Coverage. Generally described as the biggest draw-back, network connectivity is constantly being improved. You will need to check its reliability in the area you will be operating in with your prospective merchant services provider before setting up a wireless merchant account.