Last week we reported on Square, the mobile credit card scanner.
Today, reports are stating that the actual device will cost only $1 USD, and the app to use it will be free. The reader works on any device with a headphone jack, but so far the app only works on iPhone, iPad, iPod Touch.
The service is so cheap because Square will take 2.9 percent of each transaction. [ read the full article ]
Please read the original article before posting your comments.
Originally posted by TypeRice: doesn't paypal take about the same percentage away for transactions
I think PayPal only takes a percentage from the receiver, not the payer. I wonder who pays the 2.9% using this gizmo, the payer or receiver?
Most likely the reciever. For certain people, this may be a good option. Considering that all credit card processing costs money, and some services can cost more than 2.9% on smaller transactions. Of course, you still need a rotten apple to use it...but hopefully there will be a android app soon.
Originally posted by TypeRice: doesn't paypal take about the same percentage away for transactions
I think PayPal only takes a percentage from the receiver, not the payer. I wonder who pays the 2.9% using this gizmo, the payer or receiver?
Most likely the reciever. For certain people, this may be a good option. Considering that all credit card processing costs money, and some services can cost more than 2.9% on smaller transactions. Of course, you still need a rotten apple to use it...but hopefully there will be a android app soon.
Yes, actually that is a very good rate, as long as there are no other fees associated with using this CC processor. I am a very low volume merchant for my CC processing, and I pay $10.50 every month even if I don't run any transactions. Of course, I pay more than that if I do. Most processors have various rate tiers such as "mid-qualified" depending on the rewards programs for that card. VISA/Mastercard usually comes standard. Amex is separate. Discover processing is a totally separate thing also. It is a very expensive thing for businesses to run credit cards. A lot of people don't realize this. I'm sure most of that 2.9% is going to the big boys. Lately, fraud and ID theft has caused massive rate increases industry-wide due to compliance programs set up to combat it.
What, you need a Iphone to use this? What about using a notebook? Would be great at flea markets. Thanks cart0181 for divulging some of the costs associated with the CC trade. Cost of Ipod or Iphone, cost of monthly phone access, plus $1.
