Wednesday, November 10, 2010

Square Mobile Credit Card Processing. How good is it?

Square has certainly been making a big splash in the news. With promises of allowing just about anybody to accept credit cards simply by signing up and getting their little square plastic swiper to accept credit cards. Before you jump on the square bandwagon however, there are some things to consider. How serious are you about accepting credit cards? If you think you'll only be processing $1,000 or less a month it might be a good move. If however you are processing more than that,  you may be best be served with a traditional merchant account. The reasons are many:

1) Square rates are expensive 2.75% for swiped and 3.50% for key in:traditional merchant accounts could get you rates of  as little as 1.29% for debit cards and 2.15% for key in.

2) Square has had issues working with new Iphones.Square only has 128 bit encryption as opposed to a blue-tooth reader which has Features Triple DES data encryption.  

3) Square for many is considered a very fragile piece of equipment. 

4) They may have issues with their underwriting departments. 

5) Square might be promoting drug use (ok maybe, maybe not). 

5) Square being a new company may not have the best customer service.

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