iPhone Credit Card Processing Review for Square
Posted on : 05-19-2010 | By : admin | In : Credit Card Processing
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We downloaded the Square app today for iPhone to take a look and see what the Buzz is all about.
What we learned is that they give you the dongle card reader for free which is pretty cool as we love the device they offer BUT according to most of the reviews it seems like most folks haven’t received their reader.
We were a bit surprised by how high the rate is for card present sales – meaning the cards you swipe.
The point of being able to swipe a card is to qualify for a low rate yet they’re charging 2.75% and $0.25 per transaction which is off the charts considering that you can get card present rates between 1.33% to 1.69%
If you manually key in an order – meaning you don’t swipe a card you’d pay 3.5% and $0.25 per transaction. Again this rate is off the charts as its higher than the 2.19% most processors charge and higher than PayPal which is typically 3%
It seems as though the appeal to this product is that its “free” but we all know you get what you pay for.
At the end of the day by signing on with Square you’re applying for a “merchant account” through Square’s processing service BUT you’re limited to only being able to process $100 per day!
In our opinion, hardly enough for a legitimate business to operate.
If anyone is thinking about this solution we think in the end it would be best to go with a conventional merchant account for around $19.95 per month and have unlimited freedom to process what you need at a far lower rate.
Just download an iPhone app for $0.99 and you’ll get lower rates and less restrictions.
