accepting credit cards on your smartphone

[merrill77]

I wasn't sure where to post this, please feel free to move it to a more appropriate forum.

I came across a slick new credit-card payment processing service yesterday and immediately thought of NCWWers who are selling products at craft shows, flea markets, etc. It is called "Square" - it plugs into iPhones and Android phones and allows you to accept credit cards on the spot without cumbersome merchant accounts and exorbitant monthly fees. It would also be handy for contractors or other independent service providers. Maybe this is old news, but its the first time I've come across it.

the site is http://squareup.com

Engadget reviewed it last year:
http://www.engadget.com/2010/05/11/square-mobile-payment-system-goes-live-on-iphone-ipad-and-andr/

Enjoy!

I have no affiliation with the product. I haven't even used it, so this is not an endorsement. Just thought it might be helpful to someone :wsmile:

 

[Alan in Little Washington]

Sounds like a neat device for small business to avoid big fees.

I haven't read the site so can't say for sure if there is protection against this, but I can see at least one possible problem. If they become popular and proliferate, somebody is gonna figure a way so the phone records the card swipes, then use the phone to send your card number to some bad guys who will be able to use it a few times before the credit card company catches on.

I know there have been cases where standard card readers have been modified to store the numbers.

 

[CDPeters]

When I bought some lumber from Chris at Somerton Ridge Hardwoods a few weeks back he had just gotten this service and I was his test guinea pig. Standing right there by the sawmill, he was able to run my card and email me a receipt on the spot in about 1 minute from his smartphone. It worked very well.

One word of caution, though... These days, with as ubiquitous as these mag stripe readers are, you do not want to let your CC or debit card out of your sight!

C.

 

[merrill77]

Sounds like a neat device for small business to avoid big fees.

I haven't read the site so can't say for sure if there is protection against this, but I can see at least one possible problem. If they become popular and proliferate, somebody is gonna figure a way so the phone records the card swipes, then use the phone to send your card number to some bad guys who will be able to use it a few times before the credit card company catches on.

I know there have been cases where standard card readers have been modified to store the numbers.

Theoretically, this is no different than handing your credit card to a waiter/waitress who then goes and does who-knows-what with it in the back room (remember when the carbons were stolen?). If you ever do this or ever use your credit card online, then you are taking the same risk. Heck, even using it at a self-swipe terminal is not immune to problems, as thieves have installed tiny devices to steal CC #s at ATMs, gas pumps, and grocery stores. So if you are paranoid about this, you probably shouldn't be using a credit card at all. I'm not saying that caution is not warranted...just that the risk level is roughly the same as what most of us are already comfortable with.

Chris

 

[CatButler]

My wife started using this for her small business. She does a lot of shows on the weekends. It's a boon to the low volume type of business where she might have to pay $20-$30 flat + per transaction fees for off months were she wouldn't have any business. It's a bit more per transaction than that service, but it works well for her business. This is only good for "have card" transactions. If you have web/phone transactions, you will need something else to cover for those.

 

[merrill77]

If you have web/phone transactions, you will need something else to cover for those.

It looks like that has changed since your wife started using it:
https://help.squareup.com/customer/portal/articles/65089-accepting-payments-without-a-card-reader

I seem to recall reading that the transaction fee is 0.75% higher in this case.

 

[CatButler]

Hmmm, it sure seems like you're right. I had researched this about a year ago when my wife first got an Android phone, and Square was almost intentionally vague on this. The only hand entered transactions that seemed to be allowed were if the reader didn't work on the card. Reviewers had stated it wasn't for web sales. I found a FAQ through google stating it was not to be used for web/phone transactions. It looks like they have opened that up now. Good to know.

BTW, my wife has used it for about a month and is very satisfied with it.

 

[FlyingRon]

It's kind of bizarre it connects to the earphone, but i guess the data rate is minimal.

 

[merrill77]

It's kind of bizarre it connects to the earphone, but i guess the data rate is minimal.

It is the only interface you can be sure will be on every phone. And in this case, it is enough.

Come to think of it, this may actually be a security feature. It is possible that the application on the phone never actually knows the credit card number. If the application simply takes the audio clip and sends it to the server, it is up to the server to decode the information. Each device (the "square") could even do it differently, specific to the device's ID and only the server would know how to decode it. It could still be hacked, of course, but you might have to hack each one.

 

[CrealBilly]

yeah but can it weigh gold?

 

[ScottM]

I know a few crafters that have this and love it. They say it is a win-win and has helped their sales. The only down side as I see it (I am cheap) is you need a phone that support it and phone plan that includes internet access. So if you are like me (did I tell you I am cheap) there are more costs then just the transaction fees.

 

[CatButler]

I know a few crafters that have this and love it. They say it is a win-win and has helped their sales. The only down side as I see it (I am cheap) is you need a phone that support it and phone plan that includes internet access. So if you are like me (did I tell you I am cheap) there are more costs then just the transaction fees.

We have the Virgin Mobile $25/month (now $35) unlimited data/text, 300 minute plan. I guess there is some theoretical limit to data, but we never hit it. It uses Sprints network which isn't as extensive as the others. Many of the smart phones they have are low end Androids, but they are good enough for what we want to use them for.

 

[cskipper]

I also use this and love it. There are no fees unless you use it, so if I have a lull (which unfortunately is more often than not) I am not still paying for the use.

 

[jerrye]

When I locked my keys in the car a few weeks ago, the locksmith had this device and loved it. IIRC he said he got his at Radio Shack for just a few bucks. Said it was great for mobile transactions.

 

[Matt Furjanic]

It has been great for my small inlay banding business. No monthly fees is the hook. The transaction fees are slightly higher than other credit card services, but about the same as Paypal fees which I use on my website (www.inlaybanding.com). I can take a call and process the credit card on my IPad or my IPhone. You don't need a mobile device. You can process a charge on a regular computer too. Kyle Edwards told me about this. Thanks Kyle!!!

 

[NCGrimbo]

My mother sells baked goods at some craft shows and she loves using it for her sales. And since she started using it, her sales have increased because more people are not carrying cash as much these days. For anyone that sells at art fairs, ect. I would think it would be a no brainer to get one. The chance of selling a $100 item is probably better if you can process credit cards.

-NCGrimbo

 

[charlessenf]

The place I buy my chickens and feed from Shooks Poultry uses this and claimed the fees were much much lower than "the old way" he did it. He said the plug in device thingy was available at Radio Shack as I recall. I've lost track of the web site name and number at the moment, but they advertise on Craigslist quite a bit. Wish I knew the name of the service he used. Oh, he couldn't give me a printed receipt - but showed me on the little screen thing on his cell phone device.

Which reminds me. At the Verizon store today I picked up a brochure about a new device they are selling that ties your existing phone number to the Wireless world AND allows you to plug in your regular home phones to it! If I understood her correctly, you buy this thing, pay 19/month for it, take it home and plug it into your phone line (after canceling your land line service to be sure) and all your home phones will work off it. And, when you go on vacation, you simply take it with you and folks calling will get you wherever you may be. Need to check it further to see if it can actually reliably replace my land line but . ..

 

[woodwind]

I saw this credit card device this week-end at the Piedmont Craftsmen Guild show. The merchant loved it.

 

[woodArtz]

We used the Intuit GoPayment version this weekend and brought in much more $ than if we had only accepted cash. Thanks for the heads up everyone!!

 

[ScottM]

I probably lost a couple sales this weekend due to the fact I do not accept cards and there was no ATM at the craft fair site. Next time my phone is due to upgrade I will be getting one that will work with "square".