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Square is a mobile payment system that features an app and a compact ‘square’ card reader that plugs into the 3.5 mm headphone jack that allows iPhone and Android smartphones to accept credit card payments. When I first heard of Square back in May of 2010, my first thought was what a great concept!
Square seemed to be the next evolutionary step in mobile payments. Twitter co-founder and former CEO Jack Dorsey stated his goal for his startup Square was that “it become a simple payment utility for everyone.” Accepting credit card payments everywhere without requiring a merchant account, monthly fees or minimums will revolutionize credit payments for individuals.
According to Square you can accept credit card payments using Visa, Mastercard, American Express and Discover for 2.75% per swipe, that’s it, no additional fees. If you enter credit card numbers manually, your cost is 3.5% +15 cents per transaction. The funds are direct deposited to your bank account the next business day. With Square, the app and card reader are both free.
What hadn’t occurred to me until speaking with a co-worker that is also a small business owner is that Square may be a good option for many low volume small businesses. She shared details of her current credit card merchant account. She was paying almost $50 per month fee plus 2.7% per swipe for some cards and over 3% for others with a two-year commitment. She remarked that Square would be beneficial to her business and would evaluate Square in the future after she fulfills her current contract.
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What about security? If I use my credit card on someones Square account, scanned on their personal device what happens to my card information? Is it stored locally? Is it encrypted before its transmitted to square for processing?
Many of my Security concerns were alleviated after reading through Squares extensive security policy. To briefly recap, Sensitive data is encrypted using industry-standard methods when stored on disk or transmitted over public networks. Only standard, cryptographic protocols and message formats (such as SSL and PGP) are used when transferring data. Card numbers, magnetic stripe data and security codes are not stored on Square client devices. Square promises to respond to all reasonable reports of potential security problems, usually within 24 hours. If you report a problem.
Would I use my credit card on Square with a local business or an associate? Absolutely! Would I trust using square at a flea market or for a personal transaction with a stranger? Probably not! Although in most cases it would probably be perfectly safe, I couldn’t trust that the vendor or individual in that case was using the official software that hadn’t been tampered with. Call me paranoid, but there you have it.
I contacted Square regarding availability on other platforms and they responded on Twitter “We are hoping to be device agnostic as soon as possible. That will include laptops and desktops!” Currently Square remains available for iPhone, iPad and Android only. You can download the Square app from the respective app store. You get a free card scanner by mail once you sign up.
You can also pick up a Square card reader at several retail locations for $9.99 including Best Buy, Walmart, Radio Shack and select Target Stores. You can use the Square retail locator to find participating stores in your area at https://squareup.com/retail
It appears that since its launch Square has been widely adopted in the eastern US as well as the west coast. With usage branching out moving steadily toward the middle of the country. See the Square usage map below:
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Images courtesy: Square / Click to Enlarge
Do you use Square? Would Square be beneficial to your small business? Share your experience with the service in the comment section below.
Related articles
- Now you can buy a Square card reader from just about anywhere (intomobile.com)
- What Will Wal-Mart Do With Square Mobile Credit Card Readers? (readwriteweb.com)
- Square credit card readers coming to Wal-Mart & going mainstream (venturebeat.com)
- Mobile Payment Reader Square Coming to Wal-Mart (mashable.com)
- Now Selling At 9,000 Retail Locations, Square Launches A Store Locator (techcrunch.com)
Image may be NSFW.
Clik here to view.
Image may be NSFW.Clik here to view.
