Ever wondered why is it that only companies and business in general accept credit cards as a method of payment? Well a San Francisco company has been asking the same question and has come up with a solution designed to brake that monopoly. The service is called Square Up from a San Francisco company called Square .
One reason behind the statu quo until now may have been the number of red tape and countless fees associated with setting up a credit card merchant account. Now for a moment, forget about all that. According to the New York Times, the Square Up system practically get rid of almost all fees reducing them to a bare bone of a couple: a transaction fees representing 2.75 percent of the total, plus 15 cents.
Concerning the equipment, all you need is an iPhone, Android phone, iPod Touch or an iPad and a half-inch reader attachment if you own any of the Apple devices while Android phones owners whose devices is equipped with a card-swiping slot, do not need any other piece of equipment.
To set up the whole system, you would need to download the app which is free.
Beside the low transaction fees, another beauty of Square Up is the fact that you only pay as you use it; if you don't, you don't owe anything.
To "ring" a transaction, just swipe the customer's card into the slot and have him or her sign their names on the phone's touch screen with their fingers. In case the customer is not physically present, just like any merchant would do, just have them provide their cards' required information.
From that point on, your phone connects to Square's server, process the transaction authorizes the purchase, sends a receipt by e-mail to the buyer and logs the transaction on your personal Square Web page. There, a tidy table that you can download as a spreadsheet, reports your income for the day.
To sign up with Square Up, you will have to provide your bank routing and account number allowing Square Up to deposit your money according to the New York Times.
But there is a little hang concerning the transfer of the money to your account: only the first $1,000 of each week's transaction ends up in your account immediately. Any amount over that may take up to a month pending review by the company's auditors before reaching your account. If you expect to use the service to process amount exceeding that threshold, there is a way to get around that $1,000 limit by providing Square Up with more information about your business when you first sign up.
For more, see NewYorkTimes.com
One reason behind the statu quo until now may have been the number of red tape and countless fees associated with setting up a credit card merchant account. Now for a moment, forget about all that. According to the New York Times, the Square Up system practically get rid of almost all fees reducing them to a bare bone of a couple: a transaction fees representing 2.75 percent of the total, plus 15 cents.
Concerning the equipment, all you need is an iPhone, Android phone, iPod Touch or an iPad and a half-inch reader attachment if you own any of the Apple devices while Android phones owners whose devices is equipped with a card-swiping slot, do not need any other piece of equipment.
To set up the whole system, you would need to download the app which is free.
Beside the low transaction fees, another beauty of Square Up is the fact that you only pay as you use it; if you don't, you don't owe anything.
To "ring" a transaction, just swipe the customer's card into the slot and have him or her sign their names on the phone's touch screen with their fingers. In case the customer is not physically present, just like any merchant would do, just have them provide their cards' required information.
From that point on, your phone connects to Square's server, process the transaction authorizes the purchase, sends a receipt by e-mail to the buyer and logs the transaction on your personal Square Web page. There, a tidy table that you can download as a spreadsheet, reports your income for the day.
To sign up with Square Up, you will have to provide your bank routing and account number allowing Square Up to deposit your money according to the New York Times.
But there is a little hang concerning the transfer of the money to your account: only the first $1,000 of each week's transaction ends up in your account immediately. Any amount over that may take up to a month pending review by the company's auditors before reaching your account. If you expect to use the service to process amount exceeding that threshold, there is a way to get around that $1,000 limit by providing Square Up with more information about your business when you first sign up.
For more, see NewYorkTimes.com
