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A new way to accept credit cards

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Morticia

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I just came across this. I don't have an iPhone, but boy if I did... Not sure how guests would react, but note the comment about only 6 million businesses with receipts of under 100k, out of 30 million, actually accept credit cards.
 

swirt

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
 

Copperhead

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Wow! I had remembered this was covered briefly on one of their commercials. I even read the additional article (link in this one) which details the process. Here are some interesting points:
"There is no contract, merchant account, or monthly fee associated with the account. You do pay a flat fee of 2.75% plus 15 cents for every swipe, and 3.5% plus 15 cents for any charge where a card is not present (but the number is keyed in)"
"The dashboard also shows exactly how much Square owes the merchant, and the net funds are settled nightly. Depending on the bank, it could show up in the account the next day. Ordinarily, credit card companies will deduct their fees at the end of the month, making it difficult to know how much will be taken out from charge backs and refunds. "Whatever we deposit into your account, that's your money," says Dorsey."
No merchant account? They must have some way to keep track of everything...what if you have a problem with a payment etc.?
Did a quick check with my last month's statement as it was right here on my desk. If I was with Square, I would have saved $13.73...I did not have any keyed in entries or that savings would have been much less. Note: that I am currently satisfied with my processors rates when comparing with other companies (well we all wish they would take less of a chunk).
I like the fact that the NET is deposited after each sale. This is the (only) nice aspect with AMEX - the CC fee is taken with each transaction.
That last quote "whatever we deposit into your account, that's your money" really got to me, but after thinking about it I guess that if a refund comes in, they would deduct it from the net deposited for that day, same thing if there is a charge back that must be taken. But what about those that do not have a sale for a while - i.e. seasonal business. That quote could come back to haunt them. I am sure those things are ironed out in the contract - oh wait, there is no contract! Hummmmm
 

Copperhead

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
Yes, my thought too. They already have this technology, just adapt it to look like the iphone and then they can even get your signature, phone # or email too. A one stop shop for full identity theft, not just one CC. Yikes!!!!!
 

cherry64

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I was at a craft show last summer and a vender ran my card through her iPhone and I didn't even give it a second thought, other than to think how neat and convenient it was that she could run the card from the middle of a park in a mobile setting.
 

Copperhead

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I was at a craft show last summer and a vender ran my card through her iPhone and I didn't even give it a second thought, other than to think how neat and convenient it was that she could run the card from the middle of a park in a mobile setting..
I think this is a new application for iphone but there are portable CC machines that had cell phones built in. My massage therapist had one for a while. She gave it up as the cost of the machine and the processing fees were out of this world. If this iphone thing takes off, I am sure it will make the other wireless processing systems get more in the ball park.
 

white pine

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Thanks for posting this. This is VERY interesting I will have to check into this. (Still waiting for clear title work & we close).
 

Morticia

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Wow! I had remembered this was covered briefly on one of their commercials. I even read the additional article (link in this one) which details the process. Here are some interesting points:
"There is no contract, merchant account, or monthly fee associated with the account. You do pay a flat fee of 2.75% plus 15 cents for every swipe, and 3.5% plus 15 cents for any charge where a card is not present (but the number is keyed in)"
"The dashboard also shows exactly how much Square owes the merchant, and the net funds are settled nightly. Depending on the bank, it could show up in the account the next day. Ordinarily, credit card companies will deduct their fees at the end of the month, making it difficult to know how much will be taken out from charge backs and refunds. "Whatever we deposit into your account, that's your money," says Dorsey."
No merchant account? They must have some way to keep track of everything...what if you have a problem with a payment etc.?
Did a quick check with my last month's statement as it was right here on my desk. If I was with Square, I would have saved $13.73...I did not have any keyed in entries or that savings would have been much less. Note: that I am currently satisfied with my processors rates when comparing with other companies (well we all wish they would take less of a chunk).
I like the fact that the NET is deposited after each sale. This is the (only) nice aspect with AMEX - the CC fee is taken with each transaction.
That last quote "whatever we deposit into your account, that's your money" really got to me, but after thinking about it I guess that if a refund comes in, they would deduct it from the net deposited for that day, same thing if there is a charge back that must be taken. But what about those that do not have a sale for a while - i.e. seasonal business. That quote could come back to haunt them. I am sure those things are ironed out in the contract - oh wait, there is no contract! Hummmmm.
For me, I would pay more for a basic card, but less for AmEx. But who uses a basic card anymore?
Agreed, if it is THAT simple, someone will have a hack. But, you're handing over your card to someone you intend to do business with, not a random stranger. And, you can protect yourself by uploading a photo that the merchant has to verify. So, protection against theft of card anyway. And you get an emailed receipt.
Now, an intercepter app is what would concern me. You are transmitting the info wirelessly, but then, so do those new table-side processors restaurants are using.
 

JBanczak

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
 

Morticia

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
.
What company is offering swiped rates of 1.69?
 

JBanczak

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
.
What company is offering swiped rates of 1.69?
.
Morticia said:
What company is offering swiped rates of 1.69?
Intuit is 1.64% (sorry for some reason I had 1.69 in my mind) now on swiped through Rezo GT, down from 1.72 effective April 1st.
 

Morticia

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
.
What company is offering swiped rates of 1.69?
.
Morticia said:
What company is offering swiped rates of 1.69?
Intuit is 1.64% (sorry for some reason I had 1.69 in my mind) now on swiped through Rezo GT, down from 1.72 effective April 1st.
.
Any other fees? Add on costs for non-vanilla cards?
 

JBanczak

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
.
What company is offering swiped rates of 1.69?
.
Morticia said:
What company is offering swiped rates of 1.69?
Intuit is 1.64% (sorry for some reason I had 1.69 in my mind) now on swiped through Rezo GT, down from 1.72 effective April 1st.
.
Any other fees? Add on costs for non-vanilla cards?
.
Morticia said:
Any other fees? Add on costs for non-vanilla cards?
Yes there are - we couldn't make it that easy! Quite frankly I don't have them all in front of me, so don't quote me on this... but there is no sign-up free, no termination fee at all. There is an offer right now for Webervations users that gives you a free cc swiper as well. If you have a keyed in card or card not present, the rate is up around 2.45ish range. Mileage cards can be as high as 3.3ish range. Not sure AMEX, but it is around that high as well. Also small per transaction fee around .20.
I think for the most part, the rates are VERY good. We have over 500 properties now that use this system. We've seen countless monthly statements from countless cc providers and for the most part the rates wind up being better. Some of the time they are not - but they are usually very, very close at worst. It is also lodging certified which IMHO is very important (and in the opinion of most people who understand cc processing pretty well!!!)
I'm not going to tell anyone that this is the dirt-cheapest way to process a credit card, but again in my biased opinion... it is a great value that also saves you a ton of time and consolidates your operation a bit more. Plus - with no early termination fee and nothing up-front, and no terminal fee - there isn't a lot of risk to it. Out of everything Intuit has done for us (which is a lot), those parts of the deal are the best. They don't rope you into something for years and years - they need to continue to prove their value to keep you as a customer and that says a lot about their integrity.
 

Morticia

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
.
What company is offering swiped rates of 1.69?
.
Morticia said:
What company is offering swiped rates of 1.69?
Intuit is 1.64% (sorry for some reason I had 1.69 in my mind) now on swiped through Rezo GT, down from 1.72 effective April 1st.
.
Any other fees? Add on costs for non-vanilla cards?
.
Morticia said:
Any other fees? Add on costs for non-vanilla cards?
Yes there are - we couldn't make it that easy! Quite frankly I don't have them all in front of me, so don't quote me on this... but there is no sign-up free, no termination fee at all. There is an offer right now for Webervations users that gives you a free cc swiper as well. If you have a keyed in card or card not present, the rate is up around 2.45ish range. Mileage cards can be as high as 3.3ish range. Not sure AMEX, but it is around that high as well. Also small per transaction fee around .20.
I think for the most part, the rates are VERY good. We have over 500 properties now that use this system. We've seen countless monthly statements from countless cc providers and for the most part the rates wind up being better. Some of the time they are not - but they are usually very, very close at worst. It is also lodging certified which IMHO is very important (and in the opinion of most people who understand cc processing pretty well!!!)
I'm not going to tell anyone that this is the dirt-cheapest way to process a credit card, but again in my biased opinion... it is a great value that also saves you a ton of time and consolidates your operation a bit more. Plus - with no early termination fee and nothing up-front, and no terminal fee - there isn't a lot of risk to it. Out of everything Intuit has done for us (which is a lot), those parts of the deal are the best. They don't rope you into something for years and years - they need to continue to prove their value to keep you as a customer and that says a lot about their integrity.
.
Thanks! No, it's never easy is it!
Did I read somewhere that the fee for a debit card is strictly a flat rate and a cheap rate at that? Maybe $.55?
 

JBanczak

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Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what..
swirt said:
Looks interesting. I wonder how they handle the security.... I'd be pretty hesitant over anyone handing me their iphone or ipod to swipe my card and sign on screen. It wouldn't take someone very long to create a fraud version that would simply capture your info so they could use it for who knows what.
The iPhone itself is pretty secure - we are releasing an iPhone app for Rezo pretty soon and it will support keyed CC transactions initially and it seems like the security has checked-out pretty well. We hope to move to a swiped product eventually. There is no reason swiped cannot be at the normal 1.69% rate as it is on your home machine. All of the rates will just be exactly the same as they are through GT. The use case we have heard from innkeepers rarely involves a card-present (used as a swiper), but is more centered on taking a booking over the phone while away from the inn.
.
What company is offering swiped rates of 1.69?
.
Morticia said:
What company is offering swiped rates of 1.69?
Intuit is 1.64% (sorry for some reason I had 1.69 in my mind) now on swiped through Rezo GT, down from 1.72 effective April 1st.
.
Any other fees? Add on costs for non-vanilla cards?
.
Morticia said:
Any other fees? Add on costs for non-vanilla cards?
Yes there are - we couldn't make it that easy! Quite frankly I don't have them all in front of me, so don't quote me on this... but there is no sign-up free, no termination fee at all. There is an offer right now for Webervations users that gives you a free cc swiper as well. If you have a keyed in card or card not present, the rate is up around 2.45ish range. Mileage cards can be as high as 3.3ish range. Not sure AMEX, but it is around that high as well. Also small per transaction fee around .20.
I think for the most part, the rates are VERY good. We have over 500 properties now that use this system. We've seen countless monthly statements from countless cc providers and for the most part the rates wind up being better. Some of the time they are not - but they are usually very, very close at worst. It is also lodging certified which IMHO is very important (and in the opinion of most people who understand cc processing pretty well!!!)
I'm not going to tell anyone that this is the dirt-cheapest way to process a credit card, but again in my biased opinion... it is a great value that also saves you a ton of time and consolidates your operation a bit more. Plus - with no early termination fee and nothing up-front, and no terminal fee - there isn't a lot of risk to it. Out of everything Intuit has done for us (which is a lot), those parts of the deal are the best. They don't rope you into something for years and years - they need to continue to prove their value to keep you as a customer and that says a lot about their integrity.
.
Thanks! No, it's never easy is it!
Did I read somewhere that the fee for a debit card is strictly a flat rate and a cheap rate at that? Maybe $.55?
.
Morticia said:
Thanks! No, it's never easy is it!
Did I read somewhere that the fee for a debit card is strictly a flat rate and a cheap rate at that? Maybe $.55?
Honestly I don't know - let me check!
 

Samster

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We are behind the times here. Last November, I noticed that all over the UK they use wireless swipe machines and chip cards rather than magnetic strip cards. I believe that it's true in Europe as well. Our friends from across the pond will have to comment.
 

toddburme

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That is very cool. It might be sort of a fun feature in a high traffic business to use the iPhone or now iPad sort of to create interest and a point of discussion. Anything for them to remember us. :)
 

Morticia

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That is very cool. It might be sort of a fun feature in a high traffic business to use the iPhone or now iPad sort of to create interest and a point of discussion. Anything for them to remember us. :).
Yes, I thought the iPad would be the way to go. It would give you a bigger screen to look at. We could do walk-ins easily that way. And then just put the iPad in the office at night.
 

JBanczak

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That is very cool. It might be sort of a fun feature in a high traffic business to use the iPhone or now iPad sort of to create interest and a point of discussion. Anything for them to remember us. :).
Yes, I thought the iPad would be the way to go. It would give you a bigger screen to look at. We could do walk-ins easily that way. And then just put the iPad in the office at night.
.
Morticia said:
Yes, I thought the iPad would be the way to go. It would give you a bigger screen to look at. We could do walk-ins easily that way. And then just put the iPad in the office at night.
GT ipad app may be in the works... or maybe not... top secret...
 

Joey Camb

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In answer to the above the UK and most of Europe is Chip and Pin as a merchant you can make it to sign for if for example if the person has a visual imparement. We can still take American cards which don't have a chip as well. The wireless terminals are very popular with restautants as it can be taken to the table etc but be aware that they only have a limited range and you have to keep popping them back on the stand to recharge (it doesn't do to run out of batteries during check out) We don't take Amex as it has the highest commission at 5% but we take everything else. There arn't many places now that don't take cards as they are so popular. It is even more so in Harrogate as we are mainly conference trade so the guests have a business credit card and are expected by the company to use it to keep their expenses straight. It would be frowned upon to take cash out with it to pay with for example.
 
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