I've been using the Square for about three months now, and like it a lot, especially compared to my previous system. This past Sunday while I was out selling my etchings I struck up a conversation with this cab driver who was on a break. He told me about a company called Flagship Merchant Services. They charge a lot less than Square in credit card fees, but they also charge .19 per swipe, $8 per month, and you have to pay about $90 per year to be PCI compliant. It still comes out cheaper, but I don't like having to deal with that PCI compliance business. Does anybody have any experience with this company?
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Ok, I used flagship years ago and they were one of the first with wireless machines. I bought a way system machine and printer for like 400 bucks ( anyone want to buy it?) the fees were high averaging about 38 bucks a month. There was a 15 dollar a month fee for wireless service for the machine. Plus bank fees plus swipe fees pluss I don't know what! But few people in small shows had cc machines then and it doubled my sales at least. I use square now and just figure the swipe charge like gas and booth fees. The compliance test is super easy and common sense. the problem I had with them was the fees even on months were there is no show. They say you can put the account on hold but you have to write letters and give a lot of advance notice to turn things on and off.
Lots of hidden fees and no bargans. I'm sure they have changed some with the times but I've moved on.
I had a Way Systems terminal. Cheesy little critters, with an IR link for the printer. The printer went bad at a show, and I was lucky that most of the customers didn't sweat the official printout. I used the old knuckle buster forms for the receipts. The printer repair wasn't covered by the lease and the repair would have been $75 or $150 for another one. I got lucky and found one for peanuts on ebay. The terminal is going back this week to the leasing company, the bad printer and their piece of crap terminal. The terminal program wouldn't accept anything with a card expiration past 2013, and the company doesn't do updates on them. I figured out that the date could be manually entered with a 2013 date, and it would sail right through. It wasn't a comfortable fix :-( The lease is up and they can have it back.
Now on the other hand, I have a nice little printer with charger that I'll sell for a best offer ;-) In the process of getting the printer I acquired 2 more of the Way terminals. Since they don't go past 2013 as a card expiration date, I'm thinking about using them for a high speed photograph of them being shot with a .22 rifle. With a little luck in setting up the sound synchronizer, I could get the keys exploding off the terminal as the bullet passes through. That feels like a satisfying use for those terminals :-)
On the subject of credit card processing, I have heard today on the news that it will soon be OK for merchants to charge up to an additional 4% to the customer for processing a Visa or Mastercard credit card. I gather that there has to be proper posted notice.
What are your thoughts on this? If available, would you charge the fee or keep absorbing it? I would not think that you could charge someone 4% when you cost is 2.75%. But then I have not seen the agreement or terms yet. Anyone know anything about this?
Thanks
From what read the merchant cannot charge any more than their actual costs. Debit cards with a pin are exempt. But a number of states have passed laws forbidding the practice.
I think the only ones who will actually charge a higher rate for credit cards are gas stations.
I have no experience with that company. I do know that my company will waive the PCI fees if you take the test, which is a breeze to take.
I have not used the square or any of the other similiar type devices. Why you ask? I do not have a smart phone. I do not want to spend $30.00+ a month plus buy a $200.00 phone so I can get no service in some of the show locations that we attend. Already spending the $30.00+ a month for internet service at home. When you figure in the $30.00+ a month cost then the square is not cheap. So for now, I will keep my phone, which is only a phone, and when I want to use the internet, I will go to my home computer. which of course has a much bigger screen.
B. David Kruser
You don't need a smart phone. You can use an iPad (tablet). That costs just under $20 a month, tax included, and, if you're at a boring show, you can play solitaire.
I have experienced the fee creep that Barbara spoke of with my first credit card processor. First there was the statement fee, then the PCI compliance fee kept going up, the last thing they added was an "membership" fee of $60. The second processor, Teamac, was much better but I still had the different fee structure for different types of cards, rewards cards etc. And American Express had to be applied for separately and had a totally different fee structure. And I needed a machine in both cases which was only store and forward. To add instant authorization would cost extra for a wireless line. I had two cases where the machine died at a show. The second time one died with $800 of charges in it that could not be accessed to download. Luckily I had gotten emails from the two larger charges and got most of it back. If I had stuck with the same processor I then would have had to pay $400 for a new machine. I have nothing bad to say about Teamac. They never raised my fees and had great 24/7 service but I love Square.
All I can say is read the fine print very carefully and make sure you are comparing apples to apples. Also make sure you can cancel any time.
has anyone used the PayFox system from Transfirst? I was thinking of square too, but already had a wireless nutrit terminal from transfirst, so thought I'd see what they had to offer...it is 1.8% per swipe and supposedly cost me only 4.95/mo, and is PCI compliant...anyone?
I've gone through two merchant service companies, and both were frankly crooked. Talk about fee creep! No annual fee... to start, but then suddenly ta-da! An annual fee. Oh, what was the discount rate we agreed to? Well, shucks, seems it had to go up (without notice). And then up again. Oh dear, did it just go up again? Gosh. And don't forget the $2/month Visa fee. "Well, WE can't help it if Visa imposes new fees. We HAVE to pass them along to you, don't we?" And filling out the ridiculous PCI compliance certificate every year. Like having to pass a driving test online, every year. No thank you. I'm done with all that. For low-volume sales like mine, Square is perfect.
It is.
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