Over the years I have always looked for upgrades, better service, better pricing, etc re: credit cards. AND no, this is not an advertisement for either, it's an FYI.
I was part of the test for Paypal's similar program to the Square before they introduced it to everyone. (yes I had the SAIL too...but that proved to be way too limiting and according to Verifone they did that on purpose to get you hooked so you would purchase into a larger program with them, per the phone conversation I had with them..ugh canceled THAT).
Always on a quest for better, easier record management, processing time you name it.
I now have both Paypal Here (Paypal) and Square.
I use Paypal first and foremost and these are the reasons:
1. Better percentage: 2.7% Paypal / 2.75% Square
2. Paypal: 1% back on the associated debit card purchases. So, I can actually "add" more funds to my paypal account, use the card for purchases like gas for the barge and what have you, and make back 1% of what I pay in the initial credit card processing fees. That means, my percentage is lowered to 1.7% if I am diligent about using the card.
3. Square does have a program where you pay a flat fee per month (by the month) that is beneficial if your sales are over X amount.
4. Funds availability. Square for me is 2-3 days in my account. Paypal is 2-3 minutes. Paypal has free transfer of funds into my regular bank account.
5. Square has a POS attached to Ipad devices, Paypal has one that I haven't had the opportunity to try since I don't have an Ipad yet but allows limited information entry if using a smartphone just like the Square does.
6. When I wish to look up a transaction - in my regular Paypal online account all transactions are listed with the purchasers name.
7. Paypal is attached to my online shop. It makes it very easy for me to compare between the two to see my crossover repeat customers, it's all in one place.
8. Paypal accounts can be attached to Outright - a "gathering" online service that gathers information from various accounts and gives you a weekly update as to how your business is doing, categorizes transactions and what have you. I haven't looked into the Square since it dumps directly into my bank account and sometimes it's just too much information out there for big brother.
9. A biggie - connectivity. Many of you may have experienced what I call the Saturday 10-2 "blackout" as I have with the Square. It's a real pain waiting to get the transaction to process,because everyone and their brother is doing the same at shows across the nation. When I have a line trailing out my booth with cash/cards in hand this can be difficult at best. Paypal, I have only had 1 experience to date at one show that simply had poor connectivity regardless of either device.
10. There is much more that I can get into, Square by far has had Starbucks dump a fortune into their service, so the possibility of creating coupons/cents off, what have you is in place along with the customer being able to pull up what businesses in the area are using the same service so they can easily shop there and what have you. So, there is the possibility of a loyalty program that I wish Paypal would have, but with the development of the POS that may be in the future. And, paypal does have POS 3rd parties that can be used, but at a fee, that I don't agree with, so I am waiting as this develops to see where they go.
11. I keep both just in case, as when I do have poor connectivity, it's a matter of one working better than the other.
12. Both will send out additional swipe thru devices free of charge, usually with a period of time between each request. I always have 2 back-ups of each as I never know when one may get wonky.
13. Trick if a card is simply not being read and you don't wish to pay the additional fee for typing in the information. Take a piece of saran wrap, cover the card on both sides and hold it taunt, swipe it thru. It has worked every time for me, and others when this occurs.
14. While I realize there are still people with the belief that credit cards are a scourge or the fees are too much, etc. Here are the facts, credit card purchases on average make up 66% of my sales. The relief on my potential customers faces when they start shopping is - great I am just about out of money, I used up my checks and now I don't have to worry about having to choose between purchasing from you and lunch. We are fast becoming a cashless society, and I barely carry on me more than $50 when I can use my cards instead, have it all recorded and be done with it.
So, what do you think?
Comments
I spoke with a number of vendors and it seemed like most of them had challenges with the square swipe not reading the card on occasion. I heard on the other hand nothing but good things about the intuit go payment card reader....it's a little larger surface which may be the reason. I wondered about the comment that intuit charged a higher percentage - from what I can tell, the square and intuit are both 2.75 / swipe. I opted for the intuit reader and have had no problems using either my IPhone or IPad. The main challenge is the battery power on the phone/IPad being eaten up during a long day but solved that with an external battery!
I use an iphone. I found the only time I have had problems (once) with either not working was because I hadn't done the most recent update to the apps. Now, I always update before any show to be on the safe side, because it sure is a pain to do it when people are waiting.
Thank you for all the great info! I have both too but primarily use Square since my PayPal reader did not work with my smartphone ... Samsung Galaxy II SkyRocket. I do have an iPhone now and will give it another shot.
I apologizing for misleading regarding funds in Paypal.
This account is used for my on-road travels which averages about $1,000 per show (I drive a 40' motorhome cross country), and my raw goods purchases from other countries, which average also $1,000 - $2,000 at a time. To have the funds available at these critical times is important to me. I found after using my own person funding sources - checks/cards/etc that this combination worked best for me. And, it's tied to the Outright program that breaks out all my expenses, etc just from my transactions. No double accounting issues - it's just done.
The nice thing is, everyone has to do what they are comfortable with. I feel "okay" with Square but learning about it's history actually makes me a little nervous, so dropping out of using the service unless absolutely necessary is my way of protecting me. This whole way of processing money is still in its infancy. I remember my geek friends saying back in the 70's...one of these days we are going to be holding computers in the palms of our hands and become a cashless society. They were right. I look forward to hearing others experiences and hope what I provided might help some of you out that weren't sure if this was the way to go for you.
Carol, if you are loading all your funds into your PayPal account, and then using your card for purchases you're putting a lot of trust in PayPal. I am with Leo Charrette: I don't trust the security of all my money being in PayPal and it's a pain in the neck to transfer it to my bank. Square goes directly to my bank. Are PayPal funds insured like your bank? That's a question you should ask.
It is amazing to me that people in our business still question taking credit cards. At the majority of major shows, up to 95% of my sales are with cards. There was a period during the economic downturn, where people carried cash and that was all they spent. Those were interesting years, and I always had to make sure I had a good stash of cash on hand. Lately, I can go through a whole two day show and never take any bills out of my wallet; cards only. I take checks, too. I can scan them with my phone directly into my bank account. Technology is a wonderful thing!
The idea of having back-up devices is a good one, and I would consider a PayPal device for that purpose. I already have back-up Squares and have only had the "black out" period happen a couple times and it was in a "dead zone" for my phone, so another device wouldn't have helped.
I had a lengthy discussion about Intuit with a gentleman at a show in SC and he did not convince me it was more efficient.
Bottom line for me is that these readers beat the old machines and end of day batching etc., and we don't have to jump through flaming hoops to prove to the powers that be that we are handling info correctly etc. Customers feel confident and so do we.
I am just using the swipe through for now. I don't think I have had more than a few instances where it took more than a couple of swipes to read the card.
I have four of the swipers so that I have a backup for both my Ipad and phone if needed. The only thing I wish I had would be a portable printer for receipts but that's for another day. The best part of using it on my ipad is that the screen is much easier to see for both myself and the customer(the old eyes aren't what they once were).
Yeah you! Because I am trying to do further research, could you tell me if you are using the POS with your ipad or just the straight swipe thru? I would love to know how it's working, as I would eventually like to get the printer/cash drawer as a set to use it all. I don't use the check part myself, but I wanted someone to know if that was important to them. I figure for my countless hours of research comparing and studying - I could save someone else the same. My bank is a little tiny community bank that has a mobile app finally...but very limited, I mainly use it to have them send out checks for me, but then the recipient already has to be on my account through the main site, and the checks are not available at this time.
I use paypal here with my ipad and it works like a champ. I also have square as a backup but primarily use the PayPal system for all of my transactions due to the reasons you stated. The only thing I don't use it for is checks. Suntrust Bank like so many other banks with a mobile app lets me do a mobile check deposit and it is in my bank account with no fee in 2 days max. Usually it is the next day .
Thanks for posting this, Carol! I just signed up for Paypal as a backup because I have experienced the jam up on Square several times and don't want to key them in later.
Have a great show!
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