Several credit card terminals are made available for merchants to process credit card payments, gift checks and other acceptable mode of payments.
The Majority of these terminals utilize standard telephone lines or the Internet in transmitting data.
With the rising popularity of wireless technology, mobile devices such as cellular phones are enlisted in powering the technology in mobile credit card payment terminals.
According to the news, the mobile technology is eyed to accept and process payment for credit cards.
The Idea for Mobile Credit Card Terminals
The T-Mobile has come up with its mobile payment in partnership with Level up.
This is a brilliant addition to phone-enabled payment device for merchants.
The terminal comes in a kit that is available for ordering at LevelUp website. It works as a phone docking station and is equipped with a customized LG smartphones.
The phone utilizes an Android version that processes LevelUp payments only. LevelUp enthusiasts can now pay using the new terminal simply by scanning a QR code on their phones. Such terminal is adaptable and possible inclusion to credit card terminals.
The users do not place or store money in LevelUp account. Instead, they will link a credit card or a debit card to their account, just as Starbucks links gift card to their app.
Merchants on the other hand can add rewards of their choice to LevelUp that are actually ready for customers at the time the app are first used. The customers can earn some free credits with that merchant whenever they use the app.
The startup’s 1,200 business locations are using either the chosen merchant app or another kind of T-Mobile’s merchant device in scanning the QR codes that the payment app makes.
The merchants can still make use of the app, but the T-Mobile’s docking station provides LevelUp with a spot in the counter and several service advantages.
For example, a monitoring system provides information to LevelUp whenever a station is uncharged or is not working, so that merchant can be alerted.
The Costs involved and the Possible Benefits
The merchants will be charged at $25 per month by T-Mobile and LevelUp as their payment for the use of the terminal.
According to Seth Priebatsch, CEO of LevelUp, the charge is acceptable to merchants because when their customer uses the app, the merchants are saving good amount of money on processing fee.
LevelUP charges two-percent processing fee on transactions, which is favorable with most debit and credit cards.
Moreover, LevelUp has already scrapped the monthly fee of $55 they are charging before in addition to processing fee.
However, you might be thinking, why consider LevelUp over other credit card terminals that are available?
One good point is the elimination of some risks that most payment terminals have.
The customers do not have any payment information that is stored on the phone, but QR code.
In addition, the merchants do not get any information related to payment when they are scanning the code.
LevelUp up do not have to store any sort of payment information to process payment. In effect, QR code is just like a token.
Priebatsch concluded that this is how secure file sharing should work, and it is never been applied in making payments.
In the future, more technologies can be applied as credit card terminals, and these are all geared to better convenience and efficient customer service.