Accepting credit cards is a necessity for any towing and recovery company looking to maintain or grow their share of cash calls performed. And given the fact that cash calls are the most scalable and profitable source of business for towers, unwinding the mess that is effective credit card processing into your company is worth it.
One of the biggest benefits of smart phone technology advancements to small towers across the country is affordable and effective mobile credit card processing. There are options available for everyone from the single truck operator to the large fleet provider.
Here are two products that stick out as good matches for tow industry credit card processing.
Square Credit Card Reader
From the people that brought the world Twitter comes a product that is actually useful. The Square CC Reader is a simple smart phone application that allows the user to process credit cards immediately and from anywhere with phone signal. The product comes with a free tiny (1.5” X 1.5”) magnetic card reader attachment that plugs into the phone’s headphone jack. Swipe the card, enter in the details have the customer sign the touchscreen with their finger, and you are good to go. The system can be used on either iPhones (Apple iOS) or any phone with the Google Android operating system. A single account can be linked to several phones for processing, and all user activity can be tracked with each transaction’s CSV file.
Another great benefit is the Square Reader accepts American Express, Discover, Mastercard and Visa—all with the same flat rate of 2.75% if the card is swiped or 3.5% plus 15¢ per transaction when card number is manually entered. These rates are a bit higher than what you may be able to negotiate with your local bank, but the fees are fully loaded. There are no other processing, transaction or monthly fees at all. Linking Square to your checking account is easy and payments show up in a few days.
One potential downside is the plastic card reader’s durability. Towers are notoriously tough on phone equipment, and this cute little accessory very well may meet its match in the rough world of towing. The good news is, replacement readers are currently free from the manufacturer.
Overall Square Credit Card Reader represents the future of mobile credit card processing, and is a great resource for the tow industry. Details at http://www.squareup.com.
Existing Merchant Accounts
If you’d like to make a one-time equipment investment and link mobile CC processing to your current merchant account to take advantage of your existing rates, Payware Mobile may be the right product for you. For $79 you get an iPhone plug in swipe accessory and application that allows for mobile processing by a fleet of operators. The Mobile Gateway Admin feature allows you to monitor all transactions in real time and immediately deactivate any device as needed.
Payware Mobile is VeriFone’s version of mobile processing, but most processors are private branding similar technology. The swipe accessory seems more durable than other products, but is currently only available for iPhone. Check out Paywaremobile.com for more information.
The reality of all of these products is they require operators to have access to smart phones. And weather you provide employees with phones or compensate then for the use of their personal phone, upgrading to this technology definitely has its benefits. Considering the costs of just one unpaid call from a bad credit card each month or the time required by office staff to run the cards for operators in real time and you’ll be cutting the cord on credit card processing in no time.
Dennis Wencel developed “The Black Book of Towing” and accompanying DVD set to help independent towers be more profitable. The book and DVD set detail simple and proven ways to run a towing company from the business end. You can order them on his website at www.towprogram.com or by calling 888-834-1123. TowProgram.com also provides affordable online advertising solutions for the towing industry. Wencel has divided his time over the past 20 years running his own tow company and working in marketing.
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