Small businesses have been turning to Square for some time now because it’s so easy to use. Square offers a small credit card swipe device that fits in the audio jack of a smartphone for free to businesses.
Member businesses can then swipe customer’s card with nothing more than a smartphone and an internet connection and immediately process the payment. It’s a great alternative to traditional credit card processing, a process many companies simply can’t afford.
The confidence of small businesses, though, certainly doesn’t mean Square isn’t without challenges from traditionalists. Many have called it a tool for skimmers and at the moment, they don’t offer hardware authentication (though that is coming in the near future).
Even with the detractors, however, Square has just announced they’re processing $2 billion in credit card transactions from their customers. They now have a base of 8.2 million merchants, several of whom couldn’t afford traditional processing. Moreover, they’ve just been able to expand their payment processing base by removing limits for new customers and offering next business day funds.
Soon, start-ups like this one may prove the rule instead of the exception in this industry.
Source: http://www.digitaltrends.com/mobile/square-handling-2-bln-a-year-in-credit-card-transactions/
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There may be a precedent for it, but it still sounds funny that something sold in Apple stores will also be sold in Wal-Mart. I mean, did anyone think when Apple began selling the Square readers back in April http://blog.unibulmerchantservices.com/mobile-pay… that just a few months later Wal-Mart and Target will follow suit?
Good for Jack Dorsey and company and they really have something going for them, but people should know that 2.75% for a swiped credit card transaction is not necessarily a good deal. The standard industry rate hovers around 1.75% + $0.20 per transaction, usually with a $10 monthly fee. So you should really do your homework, before selecting a credit card acceptance provider.