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Video Daily: Square mobile payment scanner to cost just $1

Written by Andre Yoskowitz (Google+) @ 16 Feb 2010 13:24 User comments (6)

Video Daily: Square mobile payment scanner to cost just $1 Last week we reported on Square, the mobile credit card scanner.
Today, reports are stating that the actual device will cost only $1 USD, and the app to use it will be free. The reader works on any device with a headphone jack, but so far the app only works on iPhone, iPad, iPod Touch.

The service is so cheap because Square will take 2.9 percent of each transaction.

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6 user comments

116.2.2010 15:05

2.9% ??!? No thank you.

216.2.2010 19:33

doesn't paypal take about the same percentage away for transactions

316.2.2010 22:26

Originally posted by TypeRice:
doesn't paypal take about the same percentage away for transactions

I think PayPal only takes a percentage from the receiver, not the payer. I wonder who pays the 2.9% using this gizmo, the payer or receiver?

417.2.2010 0:53

Quote:
Originally posted by TypeRice:
doesn't paypal take about the same percentage away for transactions

I think PayPal only takes a percentage from the receiver, not the payer. I wonder who pays the 2.9% using this gizmo, the payer or receiver?
Most likely the reciever. For certain people, this may be a good option. Considering that all credit card processing costs money, and some services can cost more than 2.9% on smaller transactions. Of course, you still need a rotten apple to use it...but hopefully there will be a android app soon.

518.2.2010 3:09

Quote:
Quote:
Originally posted by TypeRice:
doesn't paypal take about the same percentage away for transactions

I think PayPal only takes a percentage from the receiver, not the payer. I wonder who pays the 2.9% using this gizmo, the payer or receiver?
Most likely the reciever. For certain people, this may be a good option. Considering that all credit card processing costs money, and some services can cost more than 2.9% on smaller transactions. Of course, you still need a rotten apple to use it...but hopefully there will be a android app soon.
Yes, actually that is a very good rate, as long as there are no other fees associated with using this CC processor. I am a very low volume merchant for my CC processing, and I pay $10.50 every month even if I don't run any transactions. Of course, I pay more than that if I do. Most processors have various rate tiers such as "mid-qualified" depending on the rewards programs for that card. VISA/Mastercard usually comes standard. Amex is separate. Discover processing is a totally separate thing also. It is a very expensive thing for businesses to run credit cards. A lot of people don't realize this. I'm sure most of that 2.9% is going to the big boys. Lately, fraud and ID theft has caused massive rate increases industry-wide due to compliance programs set up to combat it.

620.2.2010 7:15

What, you need a Iphone to use this? What about using a notebook? Would be great at flea markets. Thanks cart0181 for divulging some of the costs associated with the CC trade. Cost of Ipod or Iphone, cost of monthly phone access, plus $1.

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