We've been intrigued by the
Square Payment System since it first ditched its Squirrel costume
back in 2009, and now it appears we're on the eve (or eve of the eve, or pretty close anyway) to its release for not only the iPhone, but for the iPad and for Android as well. The software is said to be hitting App Stores and Markets this week, working with a sugar cube-sized card reader that pops into the 3.5mm headphone jack, a device that the company is giving away for free to those who sign up. Using it will not be free, with retailers paying fees starting at 2.75 percent plus a 15 cent surcharge, but that's considerably cheaper than many other options out there (which often require costly hardware to boot). There's another new video after the break, and we can't wait for these things to start showing up at the farmer's market. No more early morning ATM runs!
Update: Apps for the iPhone, iPad, and Android devices are now live in their respective download abodes. None will require that you enter a single digit of your credit card.
[Thanks, Ed]
posted May 11th 2010 9:08AM
Now when you rob someone, you can have their money right away (minus 2.75%, of course).
@oproski This seems like kind of a stupid idea. Mainly because iPhones and iPads and Android phones are not everywhere. The vast majority of people do not have them. What the vast majority of people do have is cash and/or chip and pin.
@oproski And get a receipt online. Ha
@David Bailey
This isn't designed for person-to-person payments. More for on-the-road business purchases. For example, if I have a booth at a trade show or something. Or sell encyclopedias door-to-door (lol, but a good example!).
@oproski If anyone is looking for a job, just head over to your local credit card company. I hear they are going to have lots of positions opening up in the fraud department.
@oproski
Chargeback :-)
@David Bailey in the UK yes. And I"m guessing that's where you are from (or Europe). but the banks in the US haven't embraced chip and pin. They are still on the stripe model and for that, this could work.
Also, there has been software to take CCs for a while, this is just adding a scanner to it. And a merchant account service (Square's letting you 'borrow' their account).
Can someone please explain to me when the 15% surcharge take effect?
@jakeZ And this is any different to the self check out lines at a department store, or any check out at a restaurant or department store? This wont increase occurrences of fraud, just the number of places that credit cards can be used.
@oproski
Welcome to the world of Credit Card processing, there's one important term call "Chargeback" which the bank takes the money back from you, +service fee
@TomSawyer
In case anybody is interested...They run a credit check and then limit how much you can accept per transaction and per week based on your credit.
@oproski Seems pretty useless
@SeeKo
Dude, it's 15 *cents* not 15 *percent* (that would be insane) and it is per transaction, so 2.75% + $0.15 for every card you run.
@oproski
This is a very cool idea, I'm all signed up and hoping to take some transactions at my yard sale in 4 weeks if I get the reader in time.
How awesome
@oproski 2.75 % is a terrible card present swiped rate btw.. I also wonder how long it takes to get your funds .. They are an aggregator so I wonder how long they take to pay you your funds? Also, you won't really be getting a ton of card sales anyway with a $100.00 max transaction price... There are far better solutions that exist already .. They have nice graphics and design tho :)
@Charlik Uhh Dude overseas and Canada pin based debit rules the land.. It's typically a 50 cent flat rate for the merchant and debits directly from the customers bank account instead of riding VISA and Mastercards rails .. The banking systems there are pretty closed loop..
@SeeKo Re-read the article....it said 15 cents per not 15 percent.
@dudeguy10
Here in Hong Kong what I heard the best rate available for Card Swiped transaction is 2%, so 0.75% more does not sound seriously bad consider you have much less trouble with the bank. Major payment gateway like paypal charge something similar anyway.
If you have anything more than USD 60 on a regular basis, as a merchant I will get my own account setup, not for casual ones though
this looks...usefull
@Mr Blue : Yes, money trails are fun.
@nk I want to use this to act as an ATM for our farmers market. Talk about easy money, show up with $1000 in 20's pulled from the bank, charge $2.50 a transaction and $Profit. If the average transaction is $30 (even mix of $20-$40) I lose $0.15 + 0.83 = $0.98. And pocket $1.52. Supposing I provided all the monies that's $50 easy bucks. This could scale depending on demand or be viable if your also already a merchant.
@nk
I dunno about the rest of you, but if i hand someone my credit card and he runs it through a phone, I'm gonna be a bit freaked out.
nice video
I was mildly interested, until I tried their QR code to download from market and realized it didn't work.
Doesn't that picture show it plugged in by the Home button?
@Spooka I think that is an ipod touch, which has it's earphone socket down by the home button
@wildthing Yup. That'd be a 1st Gen iPod Touch.
@wildthing Thanks!
What's so intriguing about this, really? The design doesn't look very sturdy either.
I'm not an fanboy by any means, but anyone who's recently bought anything at the apple store has probably seen those iphone attachments that they're using to accept payments..
@AKJ
This lets you, some nobody, set up a stall or van or falafel cart and not have to worry about customers who don't have cash. It means you can take card payments without the ridiculously high fees your regular bank would charge.
You get to take advantage of more customers = more money.
You don't pay exorbitant fees = more money
You don't have to worry about ALL your days takings being in cash form and easily stolen = minor peace of mind
@Tes
Did you read my comment fully? I'm thinking not..
The tech and implementation is already being used at the apple store, why not alter and make it public so that a nobody, like you, could open up a small shoe shine business downtown?
@AKJ
It's free, with no subscription charge, and doesn't require a merchant license to use. This is not true for the 'tech' you observed at the Apple store.
@AKJ
Nice, total lack of understanding and what I believe was probably some thinly veiled racism. What a class act.
The stuff at the Apple store is STILL connected to the central checkout, which is then connected to whatever bank Apple uses. It's not some small business setup and not comparable to this. How dense are you?
@Tes Yeah right, I want customers without cash. If they dont have hard cash for a hot dog on them but instead a phalanx of plastic cards, they are most likely not creditworthy to begin with. If their CC account goes belly up, you know whos at the short end of the stick?
@Bahumbug
Erm...them and the credit card company? Do you know how credit cards work?
@Celeras
I understand that this payment system is geared towards the small business, but why did it have to be so un-ergonomic? Am I the only one that sees this sugar cube breaking off after x number of swipes?
@Tes
Get over yourself dude, I'm from Asia.. we're the new black. People love being racist towards my people. In any case, I find it ironic for you to accuse me of being dense.
@AKJ
Seeing as you don't seem to know what irony means, this piece of irony is particularly amusing.
@Tes
And that's my cue to move on the next post, while you rofl..
@Tes yes but that is an issue of the software not the hardware. Apple's rig would be just fine, perhaps better cause of the additional battery. Then you need software.
there's actually a very similar rig called something like the PayWare running about. I've seen it at one of the Apple Stores. don't need it so I didn't look into. but it is out there
@Charlik
Yes but then you're limited. This thing plugs into the 3.5 audio jack. You're talking about a housing unit that will fit either an iPhone or an iPod Touch...not both, and not an iPad or any Android phone. This fits them all. How do you propose such a limitation is avoided and then how do you keep the price of the hardware low enough that it can be thrown into your account for free?
@Tes
I'm sorry but cash is king. I'd much rather "worry" about all that cash than have a paper trail. Convenient yes - but give me CASH!
@AKJ
Here's the thing you smarmy little shite, just because some bigoted jackass gave you a hard time it doesn't mean we get to deal with your nasty little shoe shine jokes.
Unlike Tes, I don't announce my skin color with my avatar, but I am black, and I do not tolerate shite like that.
@Bahumbug
Some of us don't carry cash, but rather a debit card that can be used as a credit card when needed or desired.
Welcome to the 21st century.
@sharkync
Forget about CASH being a KING, if I want to sell my Sony TV on Craig's List of $900, not everyone is going to be able to bring all that in cash to me. But if they have a credit card, they can show up same day and I can accept money right away, they will get a nice receipt for it (in case something goes wrong with TV) and I will get my money right away.
I just recently went to Renaissance Fair, where everyone was accepting payments with CASH because there was no way to get them connected to internet in their booths, but if they had Square on their iPhones, Android Phone, iPads, then they would be able to take my plastic. And trust me I wanted to buy few things but there wasn't even an ATM to take money out of.
@AKJ
"...I'm from Asia.. we're the new black. People love being racist towards my people."
Way to make a name for yourself on this board. Im sure Dinesh D’Souza is somewhere smiling now.
@LMcClure
@jkudlacz
Agreed!
@F C
What did you do to make him smile, tiger? Whatever it is, it has nothing to do with my quote that you're trying to take way out of context.
@Bahumbug I never carry cash on my person unless I am in a rural area (which is almost never). Safety measure.
An app/startup that actually encourages commerce and entrepreneurialism rather than the vacuous self love in we've been stuck in for the last 4-5 years.
@Tes
It seems a bunch of people don't know what this is for. It's not for YOU to make payments.
This is for you IF you are a vendor. If you have some sort of small business but not the means to set up a full scale till system with links to your bank and chip and pin card readers and the high fees that come with that. This is so you can set up a small business and accept card payments with relative ease and low cost.
Drug dealers can now accept credit cards?