Touch-Tone Credit Card Processing
Suggested Business Use: Seasonal and Low Volume Businesses, Mobile Merchants
Touch-tone processing allows you to process credit cards and check cards (debit cards with Visa or MasterCard logo on them) using a normal touch-tone phone or cellular phone. It is simple to use and a great alternative for seasonal and low volume merchants. There is no equipment or software to buy.
These types of merchants would benefit most from using touch-tone processing:
- Summer/Winter recreation rentals
- Firework stands
- Christmas tree farms
- Craft vendors
- Mobile merchants
- Plumbers, electricians and other trades people
NOTE: Depending on the Merchant Account Provider they may or may not take year-round businesses, be sure to check with the provider for details.
How It Works
How touch-tone processing works is you dial an 800-number from your touch-tone phone, you are then connected to an interactive voice response unit. You will then enter in your merchant account number (which you will get when you first sign-up for touch-tone processing), the customer’s credit card number, expiration date and amount of the sale using the telephone keypad. Once the transaction is approved, the transaction is held for settlement which will automatically be completed every night. The funds are then electronically transmitted to your business checking account, at your local bank, anywhere within 48-72 hours.
That’s all there is to it, no sales slips to mail or depositing credit card drafts at your bank. Every month you’ll receive a statement in the mail outlining the details of your credit card processing activity. Anytime you want you can access batch totals and track your daily activity from any touch-tone phone.
Here’s a look at the typical estimated rates and fees you will pay in order to use touch-tone credit card processing:
Discount Rate: 2.09 – 3.25%
Transaction Fee: $0.25 and up
Monthly Minimum: Up to $25
Monthly Statement Fee*: $0-$5.95
Annual Fee: $0 and up (sometimes waived)
Setup Fee: $0 – $99
Manual Imprinter: Optional; prices vary – inquire with the provider
* Those months when your business is inactive you can deactivate your account so you don’t incur the monthly statement fee, but rather just the annual fee instead. You can then reactivate once your seasonal work starts up again.
Touch-Tone Processing Resources
Most Merchant Account Providers can provide touch-tone credit card processing, most though never mention it on their website. If the provider tries to talk you into setting up a swipe terminal instead then you’ll need to look elsewhere. If you’re a seasonal merchant with low volume there’s no need to high cost software or equipment.