While competing on transaction charges is one way to do it, I think as more and more vendors (Intuit, Square, PayPal and now GroupOn) begin to offer mobile payment solutions and even more offer payment solutions with no swipe, but as an app, small business owner will benefit from even more choice.
However, as you pick your mobile payment service go with the ones who offer the best customer service and experience.
Here’s information on GroupOn‘s offering, from their press release:
Groupon announced the launch of a new payments service – one that guarantees to be the cheapest and simplest option for local businesses to accept credit cards. Built into the latest version of the Groupon Merchants app for the iPhone and iPod Touch, the payments service will beat any other available rates — offering local businesses significant cost savings on credit card processing fees.
Features and advantages include:
- Swiped transactions — MasterCard, Visa and Discover (1.8% plus $0.15 per transaction) and American Express (3% plus $0.15 per transaction); no hidden costs or monthly fees
- Dependable Service — Backed by a 7-days-a-week Groupon Payments support team reachable by phone and email
- Hassle-Free Enrollment — Up and running within minutes
- Comprehensive Features — Use Groupon Merchants app to enter bill totals, add tips, apply taxes, process refunds and email customer receipts
- Durability — Swipe credit cards via a sturdy, case-based credit card reader suitable for high transaction volume merchants or an audio jack accessory
- Security — Encrypted and secure credit card information
- Analytics — View payments information seamlessly to an online Payments Center where merchants can view a live transaction history, check daily sales reports, track deposits to their account and analyze revenue trends
For cash-only small businesses that may have chosen not to accept credit cards because of the previously-high processing fees, the payments service could be a solution.