What do you think of when you here the phrase “mobile payments”? Do you think of Apple Pay and its problems? Or perhaps you think of Square? PayPal’s app, maybe? Regardless of what you think of, there is always a downside to mobile payments. Sure, there are downsides, but there are downsides to every form of payment acceptance. Checks, plastic payment cards, and cash all have their individual issues, but should you not accept those? Heck no! With the right type of mobile payment system and support from your merchant account provider, you can accept payments and have a lessened chance of having something go wrong.
But for start-ups, the problem is this: The cost. Nothing worth having is free, usually, and this is the same when it comes to a mobile payment processor. If you are also looking for startup business funding, you can also face a double whammy. Both of these things are considered “high risk” for the majority of merchant account processors and banks, so you probably will not have any luck getting help there. And if you do, it will come at a high cost, i.e. huge interest fees and a tight leash when it comes to chargebacks and issues. We all know that chargebacks are more common with high risk companies, but somehow banks and mainstream merchant account providers just haven’t gotten the memo. Mobile payments can allow you to access customers who you haven’t reached before – and it is great for a small business or business where you have inventory set up outside. You can simply go to your customers, instead of having them look around for you.
For those who are startups and also in need of startup funding, and in need of a mobile payment system, check with a high risk merchant account provider. Not all provide startup funding and mobile payment systems, but some do. But, before you get all excited and sign up with the first company that says “yes”, read the fine print. Some have better interest rates than others, but some have a better reputation in your industry. Some offer more advanced terminals, and some offer up better rates when it comes to borrowing cash.
It’s up to you what is important, but whatever you do, please research your options before signing on with a merchant account provider. It’s one of the most important business decisions you will ever make.Get Started Now