Mobile Payment Processing Gives New Meaning to COD

wireless-enabled, the resulting changes to their service-delivery models are creating even more opportunities for wireless dealers beyond selling phones and connectivity. One of these changes is that the point of sale oftentimes has moved to the field. This means mobile workers must be able to accept credit and debit card payments away from the office.

CommerceTel Corp. is one company that is helping companies with wireless payment processing. CommerceTels MoBILE solution works with virtually any payment processor and virtually any payment gateway, using any mobile phone on any network, says CommerceTel CEO Steve Cherry. There is no hardware or software to download and users do not need a wireless data service subscription. MoBILE works with existing merchant accounts and supports most payment gateways.

Source: CommerceTel Corp.

Heres how it works: a user calls a specific toll-free number from a mobile phone with touchtone. When the system prompts, the user keys in a merchant ID and PIN. Then, the user enters the customers credit card number, expiration date, three-digit security code and sale amount. CommerceTels system responds with an authorization code and the funds are transferred, usually within 24 hours.

There are two ways to issue receipts while in the field. The agent or resellers customer can use the pre-printed receipts that work with handheld credit card swipers, or the customer can go to a special CommerceTel Web site, to retrieve a virtual receipt.

MoBILE retails for $9.95 per month and is sold month to month. Transaction fees vary based on volume and are as low as 35 cents each. The merchant is able to access a Web site and pull reports, such as spreadsheets listing all transactions, and integrate those findings with their accounting systems.

As CommerceTel has grown, it has looked to channel partners to help it increase revenue and further its reach. CommerceTel charges a fee to install the system; agents receive 50 percent of those implementation proceeds. Custom jobs cost more and partners get a bigger cut. Once the payment processing system is deployed, partners earn approximately 15 percent of the revenue generated on transaction fees. Its based on the number of transactions, not dollar volume, Cherry says. Were really looking for highvolume transactions.

Agents also can go to a CommerceTel-run Web site to view the customers they have signed, as well as the number of transactions coming from each.

CommerceTel also will rebrand the service for certain partners to bundle with their existing offerings.