While the government is still working to improve payment processing fees for vendors, a number of companies are seeking out alternative options to reduce the amount of money they have to pay per transaction. Innovative technology seems to be a big benefit for merchants, particularly mobile devices and applications, because an increasing number of customers are preferring to use their gadgets to purchase items and many mobile payment solutions offer reduced fees.
An article in the online publication Resource Nation suggests mobile payments are the fastest growing transaction solution in the industry and companies should be aware of what providers are offering. Jessica Sanders, the author of the article, says that she believes mobile payments will in fact overtake traditional credit card payments in both the B2B and B2C sectors.
"Credit card processing is one of the most important aspects of your business, so it's imperative that you get it right," Sanders writes. "Though the mobile credit processing technology is new, its benefits have been made clear by professionals in all industries."
This may be true and mobile payments may in fact be the future of transactions, but it is still in its primitive stages. By only accepting mobile payments, vendors will be cutting off the majority of their customer base. Investing in a mobile processing solution isn't a terrible idea, but it certainly isn't a be-all and end-all system, at least not now.
If vendors want to truly save on processing fees, it is advised to invest in a solution that can process level 3 data with line item detail. Accepting purchasing cards that contain this information can reduce processing fees without limiting customers to one payment method with limited adoption.