How the wireless credit card processing works

How the wireless credit card processing works

Recently founded, wireless credit card processing marked a new stage of digital payments. Not only it weakened the position of traditional credit card processing, but it also presented us with a wide range of benefits. That has given mobile customers a new sense of payment freedom; access to the same credit card networks as retail businesses. In this article, we cast the light on how the wireless credit card processing works.

How the wireless credit card processing works

It takes five steps for a wireless credit card transaction to complete:

  1. The merchant swipes a customer’s card through a wireless credit card machine. After, he enters the sale amount. Just like cellular technology, the wireless terminal taps into a radio tower. Thanks to the radio waves, the data on credit card information and the amount of a purchase transfer to the PSP. 
  2. PSP sends the purchase information to the issuing bank. The Issuing bank checks whether the credit card is valid. If the customer has enough funds on his card, it puts the purchase amount aside. 
  3. The issuing bank informs a PSP about a decline or approval of the transaction. 
  4. The information on the transaction is sent back to the wireless credit card machine. The entire payment process takes up to 10 seconds. The duration of an operation depends on a location and a coverage quality.
  5. Merchants “settles” the terminal batches. That is the final step of a wireless credit card processing. A merchant, automatically or manually, settles the terminal batches. Once the settlement begins, the funds are transferred from an issuing bank and deposited into the merchant’s account. Take a look at how payment processing works to learn more. 

man holding cup and pitcher standing on kitchen

Difference between wireless and mobile credit card processing

People frequently confuse these two terms or use them as synonyms. That’s, however, a significant omission. Wireless credit card processing requires a wireless credit card terminal while mobile credit card processing needs the internet or a phone line connection. The wireless terminal functions almost like a traditional one which has a display screen, magnetic stripe reader and keypad. However, it does not demand a direct linkage to a phone line or internet connection. It allows processing transactions thanks to radio towers. That, indeed, provides both merchants and clients with heretofore unknown payment freedom. 

So, the wireless credit card processing requires four things: proximity to a radio tower, a wireless credit card terminal, a keypad, and a display screen. Those terminals print paper receipts so the clients have a proof of a transaction completed (the receipt can also be sent to a client’s email).

Who needs a wireless credit card processing

Wireless credit card processing allows one to pay from literally anywhere, anytime. As for today, it is frequently used for delivery and repair services. That enables employees to process clients’ credit cards directly from their homes. Cab drivers also utilize wireless credit card terminals to charge clients straight from the cars. See what is consumer discount skepticism and why it’s good to be afraid of it?

blue vehicle

What are the benefits of wireless credit card processing? 

The ability to sell and buy from anywhere in the world is the main advantage of wireless payments. It is especially valuable to entrepreneurs running bars, cafes, restaurants, and coffee-shops; not to mention those involved in a taxi, delivery, and repair services. It also brings great value for merchants organizing festivals, conferences, and trades that take place in areas with no internet connection. 

The wireless terminal simplifies the communication between your business, your payment processor, the customer’s issuing bank, and your acquiring bank. 


Wireless credit card processing is a new black in the world of digital payments. It takes fewer resources and efforts to complete a transaction which makes it an excellent option for merchants. Using wireless terminals will improve your customer satisfaction rate and motivate your clients coming back for more.