How Does Wireless Credit Card Processing Work?

Today wireless credit card processing, and their innovative processing machines, have given mobile merchants access to the same credit card networks as retail businesses. This new technology allows merchants to handle credit cards, as well as cash and checks, without sacrificing security. It also leads to faster processing times, compared to traditional landline processing, and the ability to process secure transactions through wireless terminals from virtually anywhere and at any time.

This means mobile merchants are now able to say “hello” to more revenue on-the-go. The wireless payment process is really simple and very similar to traditional point-of-sale credit card processing. Here’s how it works:

How Wireless Processing Works

There are multiple wireless credit card processing types: credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or near field communication (NFC). Samsung Pay, Apple Pay, Google Pay, Fitbit Pay, or any bank mobile application that supports contactless) for making secure payments can be used in this case.

  1. The merchant slides the customer’s card through our wireless credit card machine and enters the sale amount. Similar to cellular technology, the terminal connects to a radio tower and sends the credit card information (securely) and the amount of the purchase over to Stax.
  2. We pass this information to the bank that issued the customer’s credit card (issuing bank). They check to see if the card is valid. If the amount requested is available on the card, it sets aside the amount of the purchase for the merchant.
  3. The issuing bank sends back an approval or decline message to Stax.
  4. The transaction information is sent back to the mobile credit card machine. It only takes about 10 seconds to complete the transaction (depending on coverage and network).
  5. At the end of the day, the merchant manually or automatically “settles” their terminal batches and this begins the final step in the transaction process. Once the settlement process begins, the funds are transferred from the issuing bank and deposited into the merchant’s account.

What is the Difference Between Wireless Credit Card Processing vs Mobile Credit Card Processing

There is a difference between wireless and mobile credit card processing. People often get confused or use the terms interchangeably. They are both great payment processing solutions that incorporate the ever-so rapidly changing technology in this boring industry. Wireless processing involves a wireless credit card terminal, a keypad, and a display screen. Wireless terminals can print paper receipts, and do not require a direct hookup to a phone line or Internet connection, but they instead work independently, and hence, wirelessly to accept credit cards at various locations. This method of processing is widely used in service industries, such as delivery, repair, and taxi driving. Basically anywhere that employees need to process credit cards from a customer’s home or outside of a physical store.

Mobile credit card processing allows merchants to accept credit and debit cards through their cell phone, and can send the customers a text or email receipt. Sometimes this involves an app from the processor or a piece of equipment that attaches to the phone. The technical aspects of this method are usually varied depending on your mobile credit card processor.

How Easy is it For Me to Add to My Business?

With Stax it’s very easy to add a wireless payment system to your business. Any merchant can benefit from a wireless credit card machine, but those who have mobile businesses that spend a lot of time outside of the office truly see the benefit. Outdoor venues, trade shows, sporting events, food trucks, markets, and customers’ homes are among some business types in which traditional connectivity poses a huge issue.

Wireless machines can help you increase sales by giving access to new customers that you haven’t been able to reach before. These wireless terminals are flexible, reduce operating expenses, and save you time. They deliver the same security, flexibility, and reliability as any other processing solution, so you can process payments wherever and whenever the opportunity arises.

Now is the perfect time to add contactless payment solutions to your business. Having all the tools and features your business needs under one platform helps eliminate added costs that result from using multiple payment processing providers.

Learn more about contactless payments and find out how your business can easily adapt to a contact-free environment with Stax.

We will be happy to answer any questions you have and help you leverage the best contactless payment solutions for your business needs.