The short answer? Yes, that's possible. Parties such as Sprout Bancorp, Grow and other providers usually charge subscription costs that you will soon be tied to. Providers of mobile PIN devices often do not do this and are therefore welcome results.
The costs for a mobile PIN device can more or less be divided into three categories. (handy overview to compare them? View all mobile PIN devices here ).
The first category consists of purchase costs: unavoidable and logical, because the manufacturer of such a device also has to earn something.
The actual costs range roughly from under $ 30 to well over $ 300 and depend on the type of device and possible service and administration costs. For example, it sometimes costs money to link the device to your bank account.
The transaction costs form a second item. Some providers charge a fixed amount per transaction - $ 0.20, for example. Others work with a percentage of the transaction in question. What is cheaper for you depends on the type of business you run.
And then there are subscription costs. These costs are often billed monthly and sometimes annually and cover so-called support functions on behalf of the provider.
For example, you can think of service contracts that also repair your device. Or amounts for an exchange service, where you will be assigned a replacement device in the event of unexpected problems.
Yet it is precisely those costs that are perceived by some users as unnecessary, too much or unnecessary. Why? Well - they are quite high. As a small business owner, you probably don't feel like paying tens of USD each month for this. After all, the purchase and transaction costs are high enough.
Option 1: use your phone and a chip reader
Fortunately, there are more than enough options for those who don't feel like these kinds of hidden costs. Pin with your phone, for example. mySolve is a good example of this. This is actually more of a chip reader than an actual card reader. The purchase costs are $ 15, the percentage that you pay on transactions at 1.95%. This is a bit high compared to other providers, but on the other hand, you do not have to pay any subscription costs. Also quite tasty, isn't it?
How it works: you enter the payment in the app on your phone. This then connects to the chip reader from mySolve (or another provider). The customer can insert the card in the chip reader (or pay contactless). And that's it.
Option 2: an independent and mobile ATM
In addition to the relatively high transaction percentage, some entrepreneurs experience another disadvantage of using a debit card on your phone: they do not think it looks really professional.
The solution for them? That is a simple device from the stable of iTransact. The iTransact Go is a small, mobile ATM and also works without a subscription. The only costs you incur for this are the purchase costs of $ 29 and a variable surcharge per PIN transaction. Oh - and the costs for a SIM card. Otherwise the iTransact will not work on 4G and you will be completely dependent on the local WiFi.
iTransact is not the only provider of these types of solutions. Codemobile is also a common variant. The principles are more or less the same. Just like with iTransact, codemobile costs you a one-time fee of $ 29 and of course you now pay no subscription or contract costs.
The difference between these devices is in the way of payment for transactions: codemobile works with a fixed amount per transaction instead of a percentage with iTransact . This makes codemobile more suitable for entrepreneurs who do not process transactions too often, but where the amounts are high. iTransact is better suited for cases that see many more transactions, but each time involves smaller amounts.
View all devices where you pay subscription costs and are not tied to a contract? View our comparison of all mobile PIN devices now. Including options we mentioned in this article such as mySolve, iTransact and codemobile.