2.9% seems high. If Square is trying to ATTRACT customers, the number should be lower. Otherwise, why switch? (aside from small business')
My question is:
1.) How does payment normally work? Like with a Micros system, do they take 2.9% and then give a portion to MC, Via, Amex? Is it 2.9% plus more?
2.) I thought Amex was the highest at 2.9%. Aren't the other card's costs lower?
Amex is probably the highest and depending on your business type and voilume it may be much more than 2.9%. From what I saw on Square's site its 2.75% not 2.9% for swiped transactions plus the .15 transaction fee.
At my main business we pay pass through rates plus about .83 per transaction. Pass through is the exact rate MC & Visa charge the banks that is processing your transactions. This is by far the best rate I have ever found. However, you then have to start figuring other things like terminal costs to buy or lease or use a virutal terminal and those charges. Plus any monthly fee's, batch fee's, etc. While I may pay really low rates, the issue is that each and every card can have a different rate. Corportae cards have higher swipe rates than other cards. Rewards cards are higher than no rewards cards (Its the merchant that ends up paying for all of those rewards/airline miles not the credit card companies. Those costs are passed along).
I have a side businesss and Square would be ideal if I can get the max charge bumped up since my stuff can be in the $1000+ range. You have to remember there is $) cost for the equipment. $0 month fee's. No min usage/commitment etc. Its perfect for small volume. All of the companies like Square, Costs, Paypal, etc that charge flat rates are tryng to smooth the curve with a flat rate thus the 2.75% + .15 per transaction. Makes it easier to factor into your sales costs.
Yeah, this will really streamline the process for that waiter or waitress who takes an extra swipe from my credit card on the way back to the kitchen...
The swiper will only work with the square app. The data is encrypted and as such they explicitly state it will not work with a jailbroken phone to avoid security issues. Also, the whole point would be for the waiter or waitress to scan the card in front of you and allow you to complete the transaction with selecting the tip amount and then signing the card. Once accepted that is it.
What happens when there is a chargeback?
Handled just like any other credit card company. I think this is why they do a credit check and have the set max transaction amounts to limit their exposure. All transactions over $25.00 require a signature and you as the merchant are supposed to verify that to ensure its not fraud. If you do that you are pretty much covered for a chargeback. Swiping offers more protection than key entering it. The square system also emails the user with a receipt and indicates on a map where the transaction took place as well. From what I read there is also some type of photo identification for those customers that are also square users as well. So if I have a square account, I can register my credit cards with my photo and if I visit another square merchant my photo will appear when my credit card is swiped for verification. But again this only applies for all buyers/sellers in the square network and if they uploaded a photo.
We need another player in this niche position in payment transactions as competition always benefits the consumer. I just hope Mophie offer non-merchants a reader too and with lower charges as I prefer their design and think the 'Square' looks rather silly in comparison.
http://www.mophie.com/product-p/1125_mp-ip3g-blk.htm
This sort of 1-2-1 method of card payment will do wonders for black/grey market trade, drug dealers and individuals offering adult services.
Hmmm...
Curious what the pricing is for the service. Also, this reader will not be free like the square
. In regard to the end of your post. Those business types are phrohibited from the terms of service for square.
