The Ultimate Guide to Mobile Credit Card Processing answers a series of questions highlighting why 40 percent of all SMBs now accept credit cards with a mobile credit card reader. It also highlights why many more will be doing the same in the future. In a simple-to-understand format, this guide discusses what mobile credit card processing is and how it can impact your business. Definitions of industry terms like swiped transaction, keyed transaction, recurring payments and others are included as well along with details on how receipts are sent and funds are transferred.

1. THE ULTIMATE GUIDE TO MOBILE
CREDIT CARD PROCESSING
POWERED BY EMS+

2. What is mobile credit card processing?
The process of accepting credit card payment with your
smartphone or tablet. This functions by plugging a pocketsized swiper into the audio jack port on your mobile device
and launching an application to process credit card
transactions.
“40 percent of SMBs
now accept
payments with
mobile credit card
readers.” “The question isn't 'what are we going
to do,' the question is 'what aren't we
going to do?’” - Ferris Bueller, Ferris
Bueller’s Day Off

3. What are the advantages of mobile credit
card processing?
Enables small to mid-sized merchants to accept and process
payments without the expense of monthly fees. Accepting credit
and debit cards the traditional way isn’t always inexpensive for
the SME market. Mobile credit card processing offers an
affordable alternative by turning your smartphone or tablet into a
credit card acceptance device.
“Mobile payments are
expected to reach $670
billion by 2015.” -
“Go out there and get rich. Get so obnoxiously
rich that when that tax bill comes, your first
thought will be to choke on how big a check
you have to write.” – Mark Cuban

4. What is a merchant account?
A type of bank account that allows a sole proprietor or
corporation to accept payments by debit or credit cards. It
is established under an agreement between an acceptor
and a merchant acquiring bank for the settlement of
payment card transactions.
“In 1949, Diners Club
launched the first general
merchandise charge card for
travel and entertainment
purposes.” –
“Remember that credit is money.”
– Benjamin Franklin

5. What is an aggregator account?
A payment aggregator establishes a master merchant
account to facilitate businesses accepting credit card
payments on the aggregator’s account. The payment
aggregator facilitates those credit card transactions or bank
transfers on behalf of the business.
“Aggregators can chose to
release the funds in a timely
manner (24-48 hours) like most
processors, or they can withhold
the funds for up to an additional
30 days.” -
“Rule No.1: Never lose money. Rule No.2:
Never forget rule No.1.” – Warren Buffett

6. How do I get my money?
With solutions that provide your own merchant account, your
money is routed directly to your business or personal checking
account. If you are using an aggregator account, it would be
made available by request from the aggregator’s account or
automatically added to a prepaid debit card.
“68.8 percent of all US
households are classified
as fully banked.” -
“Show me the money.” – Jerry Maguire

7. Do I need to have a business license for
mobile credit card processing?
You don't need to have a business license to sign up for
mobile credit card processing. You can set up an account
for your business as a "sole proprietor".
“A sole proprietor is
someone who owns
an unincorporated
business by himself
or herself.” -
“Everyday I’m hustlin.” – Rick Ross

8. What does “swiped transaction” mean?
A swiped transaction is when a credit card is present during
a face-to-face transaction and is actually read or swiped
through a card reader.
“Overall credit card fraud
incidents jumped 17 percent
between January 2011 and
September 2012.” -
“Wherever there is possession of
marks, there is fraud.” - Buddha

9. What does “keyed transaction” mean?
Keyed transactions occur when the card is not present or the
mag stripe cannot be read. The credit card companies charge a
higher rate for manually keyed transactions because they
assume that it is not a face-to-face transaction and represents
considerably higher risk for fraud or chargeback.
“40 percent of all financial
fraud is related to credit
cards.” -
“I made a deal with myself ten years
ago … and got ripped off.” – Homer
Simpson, The Simpsons

10. What are the average transaction fees?
Mobile transaction fees vary depending on the solution
provider. In cases where no monthly fees are included, the
range is roughly 2.25% per swipe to 3.70%. Keyed rates,
however, are higher.
“16 percent of small-and
medium-sized businesses
plan to adopt mobile
payment devices in their
businesses within the next
12 months.” “If winning isn't everything, why do they
keep score?” – Vince Lombardi

11. What is qualified vs. non-qualified pricing?
Qualified rates are charged to non-rewards cards. Higher
non-qualified cards are corporate cards, rewards-based
cards and international cards. This processor pricing model
is not always advantageous to the mobile processing
merchant.
“Based on an analysis of
Federal Reserve statistics
and other government
data, the average
household owes $7,084 on
their credit cards.” -
“Nothing in fine print is ever good
news.” – Andy Rooney

12. Why is an identity verification process
necessary?
A credit card merchant account is viewed as an unsecured
line of credit so a service provider must make sure you are
who you say you are. Successful signup typically requires a
social security number and successful completion of an ID
verification test.
“The average financial loss
per identity theft incident is
$4,930.” –
“I've tried to do away with lying in
my life in the last few years, but
it's hard.” – Louis C.K.

13. What credit cards are accepted in mobile
credit card processing?
Visa, Mastercard, Discover and American Express are
usually accepted by all mobile payment processing
solutions. In some cases AMEX may determine its own
rate, though, so it’s worth asking in terms of American
Express pricing.
“The US purchase
volume for
consumer credit
cards was $2.9
billion during
2012.” “I know people think we drive around in these
nice cars and we do whatever we want and
our parents will pay our credit cards, but
that's not the case.” – Kim Kardashian

14. Can you process debit cards?
All branded debit cards are usually accepted. The debit
card is processed just like a credit card without PIN.
“I love, love, love that you want to use
your debit card. But to keep your credit
score solid, you still need to keep a few
credit cards and use them at least once
every few months.” – Suze Orman

15. Can I request a tip with Mobile Credit
Card Processing?
Yes, you can set a default tip percentage that is
automatically added to the sale amount and presented to
the customer on the signature screen. The customer can
simply accept the new total or adjust accordingly.
“81 percent of the
money spent at fullservice restaurants
in America in 2012
was charged to
debit, credit or prepaid cards.” –
“You know what, I do want to express
myself, okay. And I don’t need 37 pieces of
flair to do it.” – Joanna, Office Space

16. Why is the CVV required when keying in a
transaction?
The CVV (card verification value) is required to provide an
additional measure of security against fraud when making
purchases online or by mail order. It’s sometimes referred
to as a card security code (CSC) or card verification code.
“Every day, hundreds of kids go into the
liquor store with fake IDs, and every single
one says they're 21.” – McLovin, Superbad

17. What are Recurring Payments?
Recurring payment is a feature that allows you to create a
schedule of future payments (e.g. weekly, monthly,
quarterly) that process automatically.
“47 percent of U.S.
businesses have
adopted or are
considering adopting a
recurring revenue
business model.” -
“Make it simple, but significant.”
– Don Draper, Mad Men

18. How do mobile processing customers get
a receipt?
After a transaction is processed, an email address can be
entered to send an auto-generated email receipt on a percustomer basis. Some services offer an optional wireless
printer device that will also generate a physical receipt.
“If a customer chooses to
receive their receipt via
email, your brand gains the
opportunity to ask the
customer for an opt-in to
marketing emails.” –
“This isn’t just my wallet. It’s an
organizer, a memory and an old
friend.” – George Costanza, Seinfeld

19. Why shouldn’t I just accept cash only?
Customers who do not have enough cash on them will
have to walk away from a purchase they would otherwise
make if you do not accept credit cards.
“66 percent of all point-ofsales (POS) transactions are
done with plastic – credit,
debit, or gift cards.” –
“America is not just a country, it's an
idea, and real Americans are getting
busy.” - Bono

20. How is the Mobile Processing Data
Protected on my smartphone?
Compliant mobile providers allow no credit card data to be
stored on your smartphone or tablet during mobile
processing. It is actually stored and processed on a Level
1, PCI Compliant, web-based service that is password
protected.
“29% of cell
owners describe
their cell phone as
“something they
can’t imagine living
without." -
“I do everything on my phone as a
lot of people do.” - Mark Zuckerberg

21. Who are the solution providers?
Companies who offer Mobile Credit Card Processing solutions include
but are not limited to EMS+, Square, Intuit goPayment, PayPal Here,
ROAMpay, Pay Anywhere, Chase Paymentech and others.
For more info: www.plusbyems.com

22. Media and PR Requests: Contact Merrell
For Media or PR requests regarding mobile credit card
processing, contact Merrell.
Email: msheehan[a]emscorporate.com
Phone: 216.524.0900 x 1865
www.plusbyems.com
“Looking forward to talking with
you, may even let you know where
I bought my shades.” – Merrell