Sunday, August 28, 2011

The problem with Intuit Go Payment brought to you by Verizon

Verizon is now going to be promoting Intuit's answer to Square mobile payment systems: GoPayment.

The basics:

The pocket-sized GoPayment reader plugs into the audio jack of any supported smartphone or android BlackBerry operating systems. Merchants can swipe consumer credit and debit cards through the reader or enter card information manually, with all transactions processed immediately and funds automatically deposited into the user's bank account within a few business days.

We mentioned previously the problems with Square credit card processing  and as you can imagine with Intuit there is also a big catch. The free version that has no cancellation fees is not cheap: 2.7%. It is not clear but it would not be surprising to find out that is has similar limitations to square (only process $100 per transaction or 1k per month). The paid version of Intuit most likely does have it's typical 3 yr contract and has the regular monthly fees of $12.95 and although they advertise a rate of 1.7% they fail to mention this only applies to regular credit cards but do not mention what is charged for reward and corporate cards ( if it is anything like what they charge for a typical merchant account you can be assured you pay between 3.5-5% or more for those cards). Do your homework as  the seemingly cheapest way can end being the most expensive. The are companies that have secure mobile payment solutions without contracts or set up fees and those payment would hit your account much faster.