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What merchants need to know about Square and the way it is set to change the way we process credit c
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Posted On :
Nov-01-2011
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Article Word Count :
456
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Square is relatively new concept in mobile phone payment systems, founded by Twitter co-founder Jack Dorsey. Square will give anybody the ability to accept payment cards without having to go through a costly credit card processing service. Instead, Square will give its users the ability to use their mobile phones, laptops or desktop computers to accept payment cards and swipe them with the help of a small apparatus that will plug into the computer's or phone's audio jack.
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Square is relatively new concept in mobile phone payment systems, founded by Twitter co-founder Jack Dorsey. Square will give anybody the ability to accept payment cards without having to go through a costly credit card processing service. Instead, Square will give its users the ability to use their mobile phones, laptops or desktop computers to accept payment cards and swipe them with the help of a small apparatus that will plug into the computer's or phone's audio jack.
Founder of Square and one of the original co-founders of Twitter Jack Dorsey predicted a sea change in the consumer-payments market. "Cash registers and credit card terminals are relics of an expensive, complicated and impersonal commercial transaction system," said Dorsey.
Since its inception Square has already become one of the premier mobile phone payment systems. The San Francisco-based company has shipped over 500,000 Square card readers to merchants all across the country and has accumulated approximately 1 million transactions in a single month alone and is managing $3 million in mobile payments daily. You may ask yourself so what does this all mean for me as merchant who process credit cards on daily basis?
The answer to that is twofold, for one it can be a costly addition to your businesses expense sheet for the startup costs associated. Square charges a flat rate of 2.75% fee for the Registration application, which can be an expensive proposition for those companies that have high end merchandise or heavy volume. The rate which the people from Square claim is competitive one that is on base with the national average associated with credit card processing. The system will also create issues with merchant funding, limiting the amount at $1,000 per week with the being reserved for 30 days.
On the other side of the equation the potential upside to such a technology can bring your business to new heights. Creating a virtual storefront of sorts that will allow you to send out promotions, manage inventory and control pricing at the push of a button. The potential seems limitless with benefits across the board. By limiting the dependency merchants have towards their credit card merchant vendors they can lower costs and profit form the difference. Vendors like, creditcardmerchantprocessor.com, still offer the most competitive rates and may better suit some business better than others.
Proceed with caution when adapting to a mobile payment system, the costs may outweigh the benefits for some businesses at first. With time the technology will be further advanced and more cost efficient for all, so don’t throw out the credit card swiper just yet but be prepared to find another place for it because you may not need it much longer.
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Article Source :
http://www.articleseen.com/Article_What merchants need to know about Square and the way it is set to change the way we process credit c_98351.aspx
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Author Resource :
Know more about processing credit cards
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Keywords :
processing credit cards,
Category :
Finance
:
Finance
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