From the internet to phones, computers to televisions, wireless technology reigns all around us. Not only does it make things more accessible, but also gives us the freedom to access the internet, watch our favorite shows, and make purchases from anywhere, anytime. No more restrictions or being tethered to cords for power and connectivity.
For merchants, wireless payment processing has opened up the ability to operate on the move. This is particularly beneficial for food trucks, pet groomers, plumbers, pop-up shops as well as for restaurateurs and café owners taking payments at the table.
In this article, we’ll explore the ins and outs of wireless credit card terminals including the features you should look for and our recommendations on some of the best options out there.
What Is Wireless Card Processing?
This type of card processing typically involves a wireless credit card machine or reader that connects with the payment gateway via Wi-Fi or mobile networks. This enables merchants to process credit and debit cards without a wired connection or a countertop point-of-sale (POS) system.
Wireless credit card terminals enable communications between the merchant, the payment processor, the card issuing bank, and the merchant’s acquiring bank, in a matter of seconds. Not only do they provide flexibility and convenience but also enhance safety and security.
There are five steps in the process:
- The customer presents their card at the wireless terminal which sends an authorization request to the processor.
- The processor sends the request to the appropriate card network (Visa, Mastercard, Discover or American Express) for authentication.
- The card network forwards the request to the cardholder’s issuing bank for validation.
- If sufficient funds are available in the cardholder’s account, the request is approved (otherwise denied).
- The cardholder’s account gets debited by the purchase amount (funds are transferred from the issuing bank to the acquiring bank) and credited to the merchant account (after the acquiring bank has deducted any applicable fees).
Wireless Processing for Small Businesses
Smaller merchants need to be flexible to meet customer demands and agile enough to scale in response to growth opportunities. Wireless processing allows them to operate on the go, wherever network coverage is available, to meet the needs of consumers increasingly gravitating toward cashless payment types.
Consumer behavior has changed, and more demands are being placed on small operators to accept payment methods that are convenient. A 2024 Federal Reserve study found that cash accounts for 16% while cards account for 63% of payments made by consumers per month. Failing to meet these changing demands puts smaller merchants at risk of losing out to their competitors who have embraced those demands.
For small merchants who are significantly impacted by dips in sales, falling behind can have devastating effects. The wireless credit card terminal eliminates the chains that once tied it to a physical location and gives merchants the freedom to operate wherever they please. It is an adaptable solution that can grow as the venture grows. A single wireless terminal may suffice a small retailer, restaurateur, or solo operator providing in-home services. As they scale, they can easily acquire additional ones, allowing for more cashiers in more places, and more opportunities to accept payments.
Wireless Credit Card Terminals
Wireless credit card terminals come with the same aesthetic look of traditional and mobile terminals—they have a magnetic stripe reader, keypad, and can even come with a receipt printer. They mirror traditional methods which ensures a minimal technology barrier in adoption.
Below are our recommendations on some of the best wireless card readers. For most, pricing is not readily available on their website, so you may need to inquire directly for more information. Any pricing info you may see below is from reviews and eCommerce sites. We recommend you to inquire directly to check for deals depending on the solution you require.
SwipeSimple Smart Terminal
This is a smart card reader that lets you ring up sales without the need to be tethered to a power outlet. You’ll need a SwipeSimple account to operate the device; having an account also gives you access to a dashboard containing easy access to your transaction history, tax reporting, and more.
BBPOS Chipper
Want to transform your iOS or Android device into a wireless card reader? Then you might like the BBPOS Chipper. It connects to your smart device via Bluetooth and USB, so you can accept cards using your phone or tablet. It supports magstripe, EMV, and contactless technologies.
SwipeSimple B250
The SwipeSimple B250 enables you to take card payments anywhere. Just connect it to your iOS or Android tablet via Bluetooth and you can start processing cards with ease. This wireless credit card terminal boasts of long-lasting battery life, along with the flexibility to accept contactless payments, EMV, magstripe cards, and more.
Clover Flex
The Clover Flex is a wireless credit card machine slash handheld POS system that’s perfect for merchants who don’t want to be stuck behind the checkout counter. In addition to letting you accept all payment types, it has extra features—such as inventory management, reporting, and loyalty—all baked into one device.
Verifone
Verifone offers a range of equipment, each designed to meet different needs. Their portable and transportable devices are perfectly suited for busy retail and hospitality environments that need guaranteed full function both on location and on the move.
The V400m is their entry-level wireless credit card machine with all-in-one connectivity—4G, Wi-Fi, EMV and NFC. For merchants seeking more functionality, their top line solution is the VX680 which delivers connection through GPRS, a Wi-Fi, and Bluetooth combination, or 3G. The V400m starts around $436 online, and the VX680 goes for $470.
Ingenico
Ingenico offers reliable solutions to merchants with several products to fit the needs of merchants, no matter how or where they operate. Their products meet the latest security standards and support all cashless methods.
Their portable wireless credit card terminals include the APOS A8 with an Android-based software ECR portfolio to support merchants to take advantage of business applications. As well as the Move/5000 which comes with Telium Tetra OS, which includes the best security mechanisms to protect privacy.
Pax
Pax brings a range of wireless credit card machines to the market, including some of the most aesthetically stunning ones currently on the market. Their A-series consists of Android-powered terminals that look great and come packed with app options to help increase loyalty and boost sales.
Among the A-series models, the A920, A910, and A930 are perfect for operators on the move, with full mobility to process data quickly and securely through 4G, hotspot support, Bluetooth 4.0, and WiFi (2.4G). These wireless credit card machines cost between $465 and $558. For those not ready to dive into Android, they also have a Linux option, the S90 for around $400.
And if you’re already using Payment Depot (or are thinking of making a switch), some of our recommended wireless credit card processing machines may be a great fit for you.
Wireless Processing Fees and Costs
The fees and costs associated with wireless processing will depend on your merchant services provider. Each processor has its own pricing structure and rates.
Payment Depot, for example, implements an interchange-plus pricing model in which we combine the interchange rate (set by card networks) with a small, set margin, so merchants can benefit from transparent, low-cost processing fees.
Wireless Processing vs. Traditional and Mobile Card Processing
Traditional card processing can be considered as the original; the basis upon which all card processing technologies have developed from. Traditional processing requires a point of sale terminal in-store. It is typically used for purchases made in-person and needs to be connected by a cord to a power source and phone line, or to the internet (think countertop POS systems).
However, it lacks the flexibility that mobile or wireless processing can offer.
Mobile processing is often confused with wireless processing as they are both able to operate on the go, without a need to connect to a landline. The difference, however, is that mobile processing is done via a merchant’s cell phone. Merchants would download the app of their provider, and in some cases, need a particular piece of equipment that attaches to the phone to enable the processing.
Merchants enter the card information via their phone, or with the magnetic stripe reader (if they use a provider that offers this equipment). The data is encrypted and sent for secure authorization, which is processed in just a few seconds.
As such, mobile processing is a subset of wireless processing.
Mobile card processing is an excellent solution for operators on the move, particularly solo operators or those with a small team. The downsides are that receipts cannot be printed; they would have to be emailed or sent via text. Also, because mobile processing requires a smartphone, it is not appropriate for larger operations that need to provide a variety of staff with access to processing equipment.
Wireless Processing with Payment Depot
Whether you’re shopping around for wireless card processing equipment for the first time or you already have a solution but want to see what else is out there, Payment Depot can help. Get in touch today and let’s chat about your card processing needs. We’ll provide you with unbiased advice and ensure that you’re not overpaying.
FAQs about Wireless Credit Card
Q: What is wireless credit card processing?
Wireless credit card processing involves using a payment terminal that connects wirelessly to a payment processor allowing merchants to operate on the move. These wireless terminals further communicate between the business, payment processor, the cardholder’s issuing bank, and the business’s acquiring bank to enable transactions.
Q: How does wireless credit card processing work?
With wireless processing, merchants can fulfil transactions using a credit card terminal that doesn’t require a direct landline connection. The terminal connects wirelessly to the payment processor when a credit card is swiped, ensuring a secure and instantaneous completion of transactions from any location having an internet connection.
Q: How beneficial is wireless processing for small businesses?
Wireless processing offers varying benefits for small businesses, specifically improving their ability to be flexible and agile in meeting shifting customer demands. It enables such businesses to operate wherever there’s network coverage, catering to customers who prefer card transactions over cash. This payment modality allows retailers, who traditionally relied solely on cash, to adjust to the changing behaviour of consumers.
Q: What are the similarities between traditional and wireless card terminals?
Wireless credit card terminals look similar to traditional and mobile credit card terminals. They feature a magnetic stripe reader, keypad, and occasionally a receipt printer. This similarity allows customers and merchants to rapidly adjust to the new technology, viewing it as a convenient method with many benefits and a minimal learning curve.
Q: What is the difference between mobile and wireless credit card processing?
While both mobile and wireless credit card processing offer the ability to operate on the go, they differ in their mechanisms. Mobile credit card processing involves using a merchant’s smartphone to download their provider’s app and potentially, a piece of equipment attached to the phone for transaction processing. On the other hand, wireless processing involves a payment terminal that doesn’t need a direct connection to complete transactions.
Q: Are there different types of wireless credit card machines?
Yes, there are different types of wireless credit card machines. For instance, The SwipeSimple Terminal is a smart credit card machine that operates independently of a power outlet. The SwipeSimple B250, The Clover Flex, Verifone’s V400m and VX680, Ingenico’s APOS A8, and Pax’s A-series range are other examples of wireless credit card machines.
Q: What are the costs associated with wireless credit card processing?
The costs involved in wireless credit card processing vary depending on the merchant services provider, as each processor offers its own payment structure and rates. For example, Payment Depot employs a tiered pricing model, charging a flat monthly fee to provide merchants access to wholesale rates.
