Small Business News
PNC Introduces Mobile Accept Payments for Small Businesses
A major U.S. bank is rolling out a new payment acceptance tool for “micro businesses.”
About PNC Mobile Accept:
PNC Bank has announced the launch of its new PNC Mobile Accept. This platform, which is integrated into the PNC Mobile app, allows businesses to accept in-person credit and debit card payments.
According to the Mobile Accept site, the new offering is designed for businesses processing less than $300,000 per year in card payments. Moreover, the average transaction size should be under $1,000. The pay-as-you-go platform will support the Visa, Mastercard, Discover, and American Express networks. However, debit cards will be processed as credit as the service doesn’t offer PIN entry.
While there is no monthly fee for PNC Mobile Accept, the bank does charge transaction fees. Currently, payments via swipe or chip will cost businesses 2.60% plus 10¢, while manually entered card transactions will be assessed a fee of 3.45% plus 15¢. PNC is also selling a Bluetooth card reader for $49 plus tax (with shipping included).
To get started with a Mobile Accept account, a PNC Business checking account is required. After joining, business owners can activate tools and view transactions in the PNC mobile app. Note that this service does require iOS 14.0 or higher for iPhone/iPad devices or Android Marshmallow SDK Version 23 or higher.
By Comparison:
Looking at the popular in-person payments service Square, their transaction fees are as follows:
- Swipe, tap, or chip: 2.6% plus 15¢
- Manually entered: 3.5% plus 15¢
That puts PNC’s fees slightly below Square, as their swipe/dip fee is 5¢ less and the manual fee is 0.05% less per transaction. Meanwhile, U.S. Bank’s recently-launched all-in-one business checking solution matches PNC’s main fee of 2.60% plus 10¢ but manual transactions are slightly higher at 3.50% plus 15¢.
What They’re Saying:
Announcing the new service, PNC’s head of Merchant Services for Small Businesses Matt Evans stated, “Micro businesses are often left behind by traditional card payment solutions due to high fees, restrictive card programs and approval delays. With PNC Mobile Accept, we’re meeting small businesses where they are, delivering enterprise-grade payments capabilities at micro business scale – fast, affordable, and accessible.”
My Thoughts:
With this addition, major banks offering small business card payment acceptance solutions of their own is officially a trend. Personally, I see this as a potential win for businesses as it allows them to keep all of their financial dealings in one place. Plus, looking at the fees, they are in line or better than other options. The only downside is the restrictions PNC currently has on the program, which would mean that some businesses may outgrow the service over time. Until then though, this could be a good option for current and prospective PNC banking customers.
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