The cost of accepting credit card payments can be expensive, frustrating and time consuming for a small business and especially for those just starting up. A percentage of each purchase and a transaction fee are paid to the credit card company, in addition to the cost of a phone line and of leasing a card reader.
The technology that turns cell phones into credit cards is already being used extensively in Europe and countries across the globe. The holdout in the U.S. has been the cost of replacing the current credit card readers with the new smart-phone terminals.
With the introduction of services like Square and the proliferation of cell phones and providers, it may not be long before credit cards are a thing of the past, especially when you consider the advantages for both consumers and retailers. Look for major companies like Google, T-Mobile, Verizon and AT&T to jump on the bandwagon to develop their own technology.
Convenient for Consumers
With the free Square app installed on your phone, simply choose which bank account you want to make the purchase from and make the payment with a contact-less wave over the Square reader. Once the transaction has been authorized, an email or text receipt will be sent to the customer. Keep track of all your transactions, deposits, purchases and refunds by simply logging into your Square account.
Savings for Retailers
By eliminating their current charges – a percentage of purchase price, a transaction fee and a minimum monthly charge, retailers will see a substantial savings. The new systems will simplify the cost by charging one straightforward fee per transaction, currently 2.75%. There are no hidden fees, contracts, maintenance fees or charges for the Square reader. Both credit and debit purchases can be accepted through Visa, MasterCard, Discover and American Express.