New Credit Card reader for exhibitors mentioned in NY Times

I just read an article in the Business section of the September 30 edition of the New York Times. There was a 3/4 page article by David Pogue. It describes in detail about the new Square credit card reader that connects to the iPhone or iPad headphone jack.

This 1 inch x 1 inch device allows you to swipe a credit card to process sales. What is most impressive is that there is no contract, no minimum transaction fees, even if you have no sales. According to the article, the charge is 2.75% of the total charge and 15 cents per transaction fee. That is it. It doesn't matter if the charge is $1 or $1,000. To sign your name, you scrawl with your finger where it says "sign here."

The article is on his blog: http://www.nytimes.com/2010/09/30/technology/personaltech/30pogue.html?_r=1&partner=rssnyt&emc=rss

I don't have stock in the company but wish I did. This seems huge for small businesses. They are also positioning the device for individuals who sell on Craig's List, etc. You can also accept credit card payments without the card itself, say over the phone for 3.5% charge. The company's chief exective is Jack Dorsey who co-founded Twitter.

I wanted to make sure all of the exhibitors out there know about this interesting change in the credit card processing world.

Howard Rose
Rose Squared Productions, Inc.
www.rosesquared.com

Replies

Sandy Spilker October 11, 2010 at 11:44pm

I read an article about this in Inc. magazine in May, 2010. I put my name on the list for the "dongle"- 1"x1" hardware that plugs into your phone or i-pad on June 10th. Over the summer I downloaded the application to my Droid phone and used it for my cash sales and waited......and waited....like everyone else who had signed up in April. I had all but given up, the summer had passed and most of the bigger shows that I had hoped to use this for were gone and passed. I only lost 3 sales for not having an option for people with a credit card. Most were understanding and simply walked to the nearest ATM (which I had found prior to each show).

So, I have only two shows left and I'm hoping to use my credit card reader and post comments for everyone on it.

I did use the mobile application for cash and found that everyone preferred to have an email sent to them and refused the printed receipt. Square's agreement requires that you still offer and keep printed receipts for all your sales, but if they refuse you aren't required. I still kept a written record so I could reconcile this against what Square has posted for me.

It does this in "real-time", it is user-friendly and alarmingly easy.

It does not let you figure in tax as a separate feature, only the final total. It currently has a feature for adding tips and various % increments. They posted on a forum discussion that they are currently working on adding the tax feature.

Communication with Squareup - the forums are going to be your best source of information. The company itself is not forth coming on details when your order is coming, if you've passed the credit check, what the hold up is, how long it will take to ship it from the warehouse - they are all well documented grips on the forums about this all summer long. Just be aware of it and don't plan on it as a business resource until you actually have it in hand. My understanding is that they are working on the production issues, etc - but I've read these types of updates all summer long and found them to be unhelpful in knowing when I would actually receive my hardware so I could take credit cards.

Taking credit cards - I practiced on my own once, that's the only experience I've had with it. It was simple, easy and fabulous! So, all the waiting, the not-knowing, the lack of communication - it was worth it to have it at this point.

there are no monthly fees....ever. As posted above, the rates are competitive, and the email receipts were welcomed by my client base.

I'll post more as I use it.
- Jan Raven > Sandy Spilker October 12, 2010 at 9:47am
  
  Fantastic summary! Thank you! I think I will poll my customers this weekend on whether they would be comfortable with a new CC arrangement. It must be a bit frustrating for you to have a new toy you can't use yet!
Jan Raven October 6, 2010 at 6:21pm

Read the entire article to get the full story. Here is a quote from the article relating to the $1000 threshold for releasing funds immediately. From a security standpoint, it makes sense.

"Then again, that’s just for first-timers. The more you use the service without incident, the higher the company will raise that $1,000 threshold. In fact, if you’re willing to share more details about your business with Square upfront, they’ll raise that threshold from the start."

Thanks for the great tip. I have been thinking of reasons why I need an iPad, and this may be a good one. I still use a knucklebuster (it always works and my fees are quite low), but would love to streamline the data-entry aspect of sales.
Robert Wallis October 5, 2010 at 7:08pm

"the first $1000 the money is transferred immediatley and more takes 30 days to end up in your account."
Anything past $1,000 takes a month to be transferred? That sucks.
Bill and Jon Slade October 5, 2010 at 6:37pm

There is a sales limit of $100 a trans.; total sales $700 a month/ this just doesn't work for most artists/ they couldn't fill the demand for the readers maybe still??// and the extra fees ,and data plan// This was actually because a glass artist lost a sale of $2,000 cause of no c.c. machine// BUT WHAT A MISTAKE cause u just let them take the glass and send a check (I have done this for 18 years without a problem) A signed statement of I owe Bill $2000 for a piece of glass sculpture, dated signed is a legal document . get their addresss etc. of course. There are better devices-veriphones Payware Mobile, and Morphe, slicker and they look sturdier then connecting to the headphone jack//I do love the no contract; say high to N.J. for me// fair winds
- Howard Rose > Bill and Jon Slade October 5, 2010 at 7:01pm
  
  NJ is fine...very wet this week. The article says there is no limit on a transaction and for the first $1000 the money is transferred immediatley and more takes 30 days to end up in your account. I am only going by the article. At the present time, for our shows, we do not accept credit cards. This might change things in the future.
  Howard
  www.rosesquared.com