Getting paid is one of the biggest challenges faced by small businesses.Often your customer has to jump through hoops to pay you. And even when they follow all the correct steps it can take weeks, or months, for those funds to hit your bank account. Along the way the check could get lost in the mail or your customer may forget to pay you altogether.It’s important for small business owners to lessen the number of steps and amount of effort it takes to get paid. Mobile payments are a commonly preferred solution for both merchants and customers. You can take payments on your mobile device using simple accounting or payment processing software. Here are a few tips for incorporating mobile payments into your day-to-day workflow.
Security 101
Several security measures protect the data in mobile payment apps and digital wallets. Consumers send payment information from their phone to a point of sale terminal using transfer technology. This usually happens through Near-Field Communications (NFC). NFC transfers encrypt payment data to protect it from interception.Depending on the app and hardware used the data may also be tokenized. Tokenization means translating credit card data into a single-use token ID number. Even if a hacker obtains the token, it won’t let them access or use the card for extra transactions. Tokenization protects both consumers and businesses from fraud during digital wallet transactions.Security features built into phones serve as an added layer of protection. Consumers often lock their phones with a password, PIN, or biometric identification such as a fingerprint. Once they unlock their phone the payment app or digital wallet often need authentication before a consumer can use them to pay. As a final measure consumers can remote lock or wipe their phones in the case of theft.Make sure to pay close attention to security when choosing payment processing software. Research which party is liable in the event of a data breach, and only use software providers that protect your business. Using a third-party payment provider is often safer than managing your own tech.
Processing mobile payments
Mobile payments are valuable payment processing options for small businesses of all types. Whether you are a photographer, shop owner, or freelancer, the ability to get paid from anywhere is powerful.Use your payment processing capabilities as a relationship-building opportunity for your customers. If you’re visiting a client, offer to accept a credit card payment for your services, on the spot. If you take payments at a storefront terminal, use the opportunity to tell customers about loyalty programs or special offers.If you’re collecting payment at a storefront terminal, use the opportunity to tell customers about any loyalty programs or special offers.
Final thoughts
As a business owner, your goal is to make the payments process as streamlined as possible. Accepting mobile payments makes it easier for you to get paid faster while protecting yourself from risk and fraud.When you sign up for a mobile payment service, make sure you understand who is responsible in the event of a data breach or fraud. It’s important that your business will not be held responsible for losses.Reputable companies with experience in protecting sensitive data will help protect your business.
This article was produced by the Quickbooks Resource Center and syndicated by MediaFeed.org.
Featured Image Credit: DepositPhotos.com.
