Accept Credit Cards Through Your Smart Phone

[Brian Hannigan]

Hi all,

I just signed up for Square. It is a credit card swipe that plugs into the audio jack on your Droid, iPhone (or several others).

I'm looking forward to receiving the swipe and trying it out.

It looks like this would be great for all of you.

No sign up fees

no monthly fees

The swipe is free

2.75% per transaction, no other fees.

Has anyone else tried this yet? It will be perfect for me at the next conference (http://www.inspectionconference.com). Bring your credit cards and I'll show you how it works ;)

I'll report back when I've had a chance to use it. I should get the swipe in 7-10 days.

Here is a link to their site. Look at the FAQs for info.

https://squareup.com/

[Tim Spargo]

Works well Brian. No complaints yet.

[Linas Dapkus]

I used it for a couple months now. Works great.

[Scott Patterson]

I signed up for it yesterday! It looks like a good deal and service. I have really found any negative press about it. At 2.75% that is a good price for the service. Looks like I will be getting rid of my Costco CC service!! :)

[Ted Williams]

I haven't looked into it yet, but I have seen an ad about a phone with built-in swiper that intrigues me.

[Ken Rowe]

I'm looking into it also. One thing that I'm not finding is a customer service phone number. If I ran into a problem during a transaction I'd like to be able to call someone... or is this just being silly?

[Dominic Maricic]

The only negative press is coming from all the fake versions that are starting to get out there that allow people to capture your data for themselves. There's nothing squareup can do about this though and I can't really see it being a long term problem. Device & monthly fees are great if you're only running a few transactions a month.

[Ken Rowe]

I just received an email from them. They do not offer telephone support. Only email. It took them a full day to get back to me.

[Dan Harris]

Hi all,
Bring your credit cards and I'll show you how it works ;)

https://squareup.com/

Brian, now your starting to sound like lisa at nickis club, are you taking lessons form Lisa?? :D :D

[David D. Whitt]

I signed up for it yesterday and will be getting mine soon. I have read a few negatives about the customer service, that does not deter me from trying it. When I downloaded the App onto my I-phone, it has a contact support button in the account information, and the only option is to e-mail them. They also have support options that may help with any number of issues one may run into. I can't find a phone number on the app though.

[Brian Hannigan]

My Squareup arrived today (quick dilivery).

Gave it a test and it worked great. Pretty cool little device/app.

I'm happy with it! :)

[Greg Hammond]

I signed up with Intuit, same deal, no monthly charges, cancel at any time. Still waiting for my free phone scanner though. Good tech phone support. The per charge fee varies depending on keyed in or swiped charge.

[James Duffin]

I signed up with Intuit, same deal, no monthly charges, cancel at any time. Still waiting for my free phone scanner though. Good tech phone support. The per charge fee varies depending on keyed in or swiped charge.

Why did you pick Intuit over SquareUp? I like the way the Intuit card reader sits on the phone better than the way the SquareUp pokes out and looks like it could swivel when used?

[Greg Hammond]

Lack of knowledge (didn't know about it) :eek: My wife got an email from intuit so she signed us up, I'm not averse to changing tho. Just have to do more research i guess. The free reader apparently plugs into the ear jack not the bottom of my Iphone like I thought, It cost's $50 if I want that one. :(

[Rick Hurst]

Brian,

I just signed up and it was very easy to do so.

The program downloaded to my phone in just seconds. Thanks for the heads up on this.

Now I can get rid of my credit card machine which is costing me around 55. a month and I can also get rid of a phone line that I have to have just for that credit card machine to process my charges.:)

Rick Hurst

[John Kogel]

Is anyone worried about security, sending other people's CC info off into the ozone?
I process CC's on a landline for that reason, and keep the slips in a safe.

[James Duffin]

I'm no credit card expert by any stretch of the imagination....but I would think people would be more comfortable with you swiping their CC rather than giving you their CC # and the code on the back of the card. I'm not sure but I doubt the SquareUp process keeps a record of the customers CC # so their is no danger of the number being used again.

[Mike Gault]

I signed up this am as well.

Cheaper fees than either paypal or google checkout.

[Scott Patterson]

Is anyone worried about security, sending other people's CC info off into the ozone?
I process CC's on a landline for that reason, and keep the slips in a safe.

Nope! No different than shopping on line or inputting CC information on a virtual system as I do now on my computer now. It is a heck of a lot cheaper!

[Greg Hammond]

Ok, I just went through my credit card charge fees with Intuit. I don't pay a monthly fee, there is no monthly minimum and the percent breakdown is:
Per-authorization fee $0.23
Fee for electronic authorization. Each time you submit a transaction and any time a daily batch is closed, you receive an authorization. This fee is in addition to the discount rate fee on charges.

Discount rate
Card-swiped: 1.64%
Key-entered: 2.44%
This percentage of every MasterCard/Visa transaction is deducted as a fee. This rate varies depending on various factors like whether you swipe the card or key it manually.
Now one caveat, they were doing a promotion at the time so I'm not sure if the rates are still the same today. So my conclusion is to stay with Intuit for now anyways.
Oh BTW, they are going to reverse the fees on my past CC charges (pro-rate) since I never got the phone scanner and I had to key all CC charges in. Good customer service. :)

Price Comparison | Intuit Payment Solutions (http://payments.intuit.com/pricing/)

[Marc M]

Mannn! Looks great. My problem is I just stepped on my brand new,two day old iphone yesterday. Crushed. And no, there was no insurance.

[Greg Hammond]

Marc, look on craigs list, the screen can be replaced for about $30-40

[Ted Menelly]

Mannn! Looks great. My problem is I just stepped on my brand new,two day old iphone yesterday. Crushed. And no, there was no insurance.

Just got a brand new HTC Inspire .... because I did pretty much the same thing.

Good thing was I hammered ATT until I got the deal I wanted. At first they were adamant about sticking to their guns until I reminded them that in the past 6 to 7 years I have given them about 18,000.00 for Phone, internet, television, cell phones and plans and some advertising. "Well I see that everything you said is true so I guess we can go ahead and put that package together for you.

[Marc M]

Marc, look on craigs list, the screen can be replaced for about $30-40
Cool, thanks. I may have other issues as well. I stepped on it with my road bike shoes. Hey, how's AZ? I used to live by Cave creek.

[Greg Hammond]

Cool, thanks. I may have other issues as well. I stepped on it with my road bike shoes. Hey, how's AZ? I used to live by Cave creek.

Dude, cycling shoes are only good for 2 things.....riding a bike & falling on your #$@ walking on wet pavement, not stepping on Iphones :eek: It's the same ole same ole here, sunny & hot most of the time HA!

[Marc M]

:D ...yea, you AZ boys probably dont even know what a bike is. If its not 123 degrees, you're dodging lightning! You take your life in your hands riding out there, thus reason # 275 not to ever Move from California...;)
Dont even get me started on the mini vans they use for photo enforcment. Or the ones on the freeway.
Hey, think you could stop by Market Bistro off thunderbird and mail me one of their Turkey Sandwiches?

[JB Thompson]

Ok, I just went through my credit card charge fees with Intuit. I don't pay a monthly fee, there is no monthly minimum and the percent breakdown is:
Per-authorization fee $0.23
Fee for electronic authorization. Each time you submit a transaction and any time a daily batch is closed, you receive an authorization. This fee is in addition to the discount rate fee on charges.

Discount rate
Card-swiped: 1.64%
Key-entered: 2.44%
This percentage of every MasterCard/Visa transaction is deducted as a fee. This rate varies depending on various factors like whether you swipe the card or key it manually.
Now one caveat, they were doing a promotion at the time so I'm not sure if the rates are still the same today. So my conclusion is to stay with Intuit for now anyways.
Oh BTW, they are going to reverse the fees on my past CC charges (pro-rate) since I never got the phone scanner and I had to key all CC charges in. Good customer service. :)

Price Comparison | Intuit Payment Solutions (http://payments.intuit.com/pricing/)

They must've changed. The monthly fee is $12.95 :(

Intuit GoPayment - Get paid on the spot using your mobile phone (http://mophie.intuit.com/)

[Ken Rowe]

They must've changed. The monthly fee is $12.95 :(

Intuit GoPayment - Get paid on the spot using your mobile phone (http://mophie.intuit.com/)

That's the optional plan if can get if you process over $1000 in credit card transactions a month. The other plan is free.


Mobile Credit Card Processing made easy with Intuit GoPayment (http://payments.intuit.com/products/basic-payment-solutions/mobile-credit-card-processing.jsp)

[Tom Camp]

You guys sold me, I am going to order one.

[Brian Hannigan]

I just got an e-mail/ad for the intuit system.

GoPayment: A Mobile Payment Processing System from Intuit (http://intuitpayments.com/getpaid/pricing-42F2-992FC.html)

I see that over $1,000 as mentioned above is a..
$12.95/mo fee.
Card swipe fee of 1.7%
+.30 per transaction.

Square up is a flat 2.75%

Just some info for you to have and think about.

[Rick Hurst]

Brian,

The only drawback with the Square service is it says if you have over a $1000. a week in charges, they have the option of not depositing these funds for up to 30 days.
Have you noticed that?

Rick Hurst

[H.G. Watson, Sr.]

Thoughts to ponder (I don't personally "know" all the ins and outs technically, but am concerned about same due to what has been "warned" about, especially lately, in the media, and the personal experience of having an I-phone stollen):

First, the I-phone (and I don't know if this is the same for all "smart phones" constantly switches from the network's various towers - connections and will swap from the network to other signals).

The I-phone caches & stores information - which can be retrieved.

It is imperative to initiate an access pasword on your I-phone should it fall into the wrong hands or be stollen - stored paswords, account numbers, user-ID information in APPS can be acquired.

It is very important to install security apps to your phone - and use them, such as remote disabling, tracking, etc. in the event your I-phone is stollen (these too can be disabled by the knowledable thief). I-phones are dependant on the sim card - a thief will be allowed to set up with the service provider simply by installing a new sim card - unlike days gone by, they do not "black list" SNs of reported lost or stollen equipment.

When/If your phone is lost or stollen - you must notify all your CC accounts, bank accounts, etc. interrelated, accessed, etc. with the I-phone - failure to do so, and freeze those accounts and start up completely new ones, at your own peril (learned that the hard way) - this includes secondary accounts that you used your I-phone (general internet or specific app) via a primary account to transact with (deposits, withdrawls, transfers, i.e. transactions).

If you don't set up your security right - your I-phone can "share" info with a neighboring device such as I-phone to I-phone, wirelessly transmitting/receiving the data, not using the/a network (if I understood that right - "sharing" apps or functions built in). Wandering into an insecure WiFi network/signal (might be scammer devised for example), can be a security "hole".

"Smart Cards" as in credit and/or debit cards - data can be "grabbed" wirelessly by theives simply by being in proximity to them not requiring one to be swipped by a device - no contact required with the card itself - you may recall many articles on that in the media a few weeks/months ago. Folks were being advised to keep these cards in a protective shielding sleeve, especially at sporting events, large venues such as malls, airports, etc. These are the cards that don't have to be literally swipped at some points of sale - they can just be "waived" at gas pumps, etc. at designated points of sale.

There are hosts of "spyware" floating all over the internet specific to various smart phones.

Regards to I-phones, If you're not controlling how your smart phones are "updated" and/or not regularly and securely (hard wired connection) running the updates via I-tunes on a hard-wired, secured computer connection to the internet - how can you "know" your I-phone, its connections, and transactions you make are "secure" from YOUR end, and also not subject to data mining should your I-phone fall into the wrong hands? I also have been told to never EVER install an app that is NOT via the I-store because it may have malicous code or not be secure.

Regarding smart phones, and even some not-so-smart phones, most may recall that wirelessly programming may be installed, that can turn your phone into a remote listening, viewing (activating camera), tracking, etc. device.

Readers may recall a continuing problem (world-wide) regarding cloned cards (debit & credit) activity showing up months, even years, after the "exposure" of the card data, swiped or waved. Store chains, POS, approval interfaces not just lacking in having updated encryption systems, but "exposures" in other ways. The "smart cards" are supposedly even more vulnerable to cloning from "afar".

I replaced my stollen I-phone with a less fancy, not-so-smart model. The "smart cards" are kept in protection sleeves. I've gone back to "old school" regarding accessing accounts, etc. Seems I-phones and other smart phones can also be easily "cloned" - (i.e. cloned sim-cards). Again, not my strong point, and may have misunderstood what folks from AT&T and I-Store "explained" - but the whole business of having phone stollen was initially not a big deal, then developed into a real "mell of a hess" that took a good deal of time over three months to "iron out", then many months later had fraud cloned card activity show up in a spending spree on a single day in a foreign country (ontario, Canada), where me, the card, the phone, and no transactions prior ever with card number, had ever been (new card account number never used - only accessed via "secure app" to check and view along with other accounts with same institution on stollen I-phone). Fortunately, as the card holder, I was not liable, and the fraud department of the institution caught the activity after the 2nd transaction, contacted me, shut it all down - but the merchants up there likely got stuck by the thieves (IIRC a wide flat screen TV at a wal-mart and I forget the other large purchase or the name of the other merchant (not one we have here).

The problems I foresee are liability regarding exposure of the customer's "card" information, access by thieves to your own "account" with the approval or access venue for CC processing - especially by "money laundering" type schemes where thieves may use YOUR account to process transactions from stollen card data leaving you holding the bag.

I am unaware of the limits of liability regarding the user/store/company who is "hurt" by phony transactions at the present time, if there is any. I know your customer can be protected to a limit depending on the type of card (credit, charge or debit) should fraud occur - but the clearing house to you as a merchant - I don't know. I know stores take the hit when thieves use stollen card numbers, cloned cards, stollen cards at their stores.

I wouldn't want to be the guy who ended up on the losing end of thieves, scammers, and a "leaky" security system for such data, or on the wrong end of a lost, stollen, or shipped in for repair, or warranty swap-out, smart-phone. Seems the thieves are usually quick to find loopholes, and the lack of security or awareness by the majority of users - and exploit them long before they are or can be "fixed".

[Ken Rowe]

I decided to give Square a try and here's my experience:

I signed up online, entered my bank account information, and it took a couple days for my account to be verified electronically. In the meantime the card reader was ordered. The email I received from Square stated it would arrive in 4 to 5 business days. I received it in three.

Prior to receiving the reader I emailed Square and requested that funds over $1000 per week Not Be Held for 30 days as per their policy. The next day I received a reply stating they had withdrawn the $1000 limit on my account and any transaction processed via swipe would be credited immediately to my bank account.

My first credit card transaction was Monday evening. The money was deposited in my account Thursday morning.

All in all a positive experience...Thanks Brian.

[Scot Asher]

Had square for few months now but haven't had anyone paying with a credit card. I have swiped my own though and it works well. I ordered the adapter that plugs into my droid. I don't think I will use it much but it's a nice option to be able to offer clients that alternative to pay.

[Larry Morrison]

I just ordered 2...one for the inspection business and one for our insulation business. I think this will be a good fit. I had (just canceled today) a regular merchant account. On average, I would pay 3% after all the monthly fees. And at least 4% for AE cards (I hated taking AE for that reason) Some months I would not run any but still had the $8 monthly fee. Also there was an annual $100 security fee.... (this was coming up again in about 1 week) Should be unneeded since I don't store any card info...but oh' well.

I didn't see anything on Sqaureup about any annual security compliance check by a third party...I hope they don't have one)

I used to pack around a terminal to swipe the CC because, as you know, if you key in the info, it cost you about another 1%. The terminal also required a Land Line and I found at least 1/2 of the customers don't have a land line. I would have to swipe the card then hook it up after returning to the office and then mail them the receipt. (another .44 cents)

[Dana Bostick]

I signed up with Intuit, same deal, no monthly charges, cancel at any time. Still waiting for my free phone scanner though. Good tech phone support. The per charge fee varies depending on keyed in or swiped charge.

Don't hold your breath on the reader thing. They played "bait and switch" on me and wanted to charge me for the reader that was supposed to be free. I still have a burr in my side over that game. I've kept them only because its the app that will run on my phone and the rate is pretty low. I have a separate merchant account on the website (TSYS) but no one uses so it's getting dropped. Seems no one wants to pay in advance and I have no problem getting payment at the end of the inspection. This deal will make it easier and typically, the rate is lower on a swiped card than on a hand entry. Much faster as well.

[Fidel Gonzales]

I don't remember who in the forum recommended it to me. But so far is work great. I use with I-phone.

[Robert Ernst]

I use it and ordered a extra reader as a back up. It's easy to use. The customers signs with their finger right on the screen. You can text or e-mail the receipt. If you text it shows up in their phone in a few seconds. If you log in to your account you can also set it to put the location on the transaction into the receipt. Works well for us that are in the field and not at a set location. You can also key in cards. I've attached a picture of part of a receipt.

[Mike Schulz]

If you enter credit card numbers manually, your cost will then be 3.5% + 15¢ per transaction. https://squareup.com/pricing

I get allot of CC over the phone. Onsite I tell them I prefer check and 90 % percent of them don't have a problem with that........something to ponder.

[Tom Camp]

Square is a great source for accepting credit cards. It is easy to use no hidden charges no monthly fees and no contract.

To contrast this service I was contacted by First Data to use their service which they assured me was the same as square only better fees. As it turned out there is a 3 year contract plus monthly fees. I was paying much more than with square. The card swipe I had to buy from Charge Anywhere for $30.00 and pay $5.37 per month for the use.

When I realized all the charges from First Data and Charge Anywhere I called to cancel my account. That was easy with Charge Anywhere but with First Data I had to pay an early cancellation fee of $ 497.00, it was worth it to be rid of such a deceptive organization or maybe just a clever and deceptive sales person, any way GOOD RIDDANCE.

My Advice is to stay away from First Data.

Tom Camp Inspection Services (http://www.tomcampinspectionservices.com)

[Hans Cramer]

I have been using Square for about 3 months now. I have had no issues at all. I swipe on average $1500.00 a week and have always had the money deposited in my accout within 3 days. After 3 years with a traditional machine, this is a very nice change (and a lot cheeper to use). Very impressed that they dont add on a fee for swiping rewards cards.

Hans Cramer
Cramer Inspection Group, Inc.

[Jack Myers Jr]

Have used Square for almost a year now with no complaints whatsoever. Would suggest using this to everyone, it is a very good tool.

[Todd Goff]

I came really close to signing up for this device - after all, the fees seemed straight forward and the convenience would be an undeniable plus - but after doing some poking around on the internet I've become very apprehensive. Apparently, a total lack of customer service and the stories of funds being held are deal breakers for me. For now, I think I'll have to pass. Here's one of the review sources (http://www.cardpaymentoptions.com/credit-card-processors/square-review/) I stumbled upon.

[Jim Luttrall]

I came really close to signing up for this device - after all, the fees seemed straight forward and the convenience would be an undeniable plus - but after doing some poking around on the internet I've become very apprehensive. Apparently, a total lack of customer service and the stories of funds being held are deal breakers for me. For now, I think I'll have to pass. Here's one of the review sources (http://www.cardpaymentoptions.com/credit-card-processors/square-review/) I stumbled upon.

Maybe I am off base but the review sight seems to be selling merchant services and has a vested interest in slamming Square while boosting other serviced that have the extra middle man fees. Some of the reviews I read looked to be concocted to my mind, Just sayin...

[Dan Cullen]

We run about $80k a month of cc billing through authorize.net using HomeGauges "no pay, no report" feature. We've been doing this for several years without a hitch of any sort. Never a worry about a lost check, deadbeat client, security breach....nada.

In this day and age of cyber crime i wouldn't blame some customers who would not want their cards swiped by my phone. Just as importantly, at 2.75 per transaction our cc costs would go up by several hundred dollars. I'm not sold by any means.

[Ken Rowe]

We run about $80k a month of cc billing through authorize.net using HomeGauges "no pay, no report" feature. We've been doing this for several years without a hitch of any sort. Never a worry about a lost check, deadbeat client, security breach....nada.

In this day and age of cyber crime i wouldn't blame some customers who would not want their cards swiped by my phone. Just as importantly, at 2.75 per transaction our cc costs would go up by several hundred dollars. I'm not sold by any means.

Not really. To run them through homegauge you have the following fees:


The fees for a Card Not Present (CNP) Payment Gateway account are:
Non-Refundable Setup Fee: $99.00
Monthly Gateway Fee: $17.95
Per-Transaction Fee: $0.10
No contract - No cancellation fees

If you are applying for an Internet Merchant Account, the typical fees will be like the example below:
Monthly Fee: $9.95
Authorization (Transaction) Fee: $0.25
Qualified Discount Rate: 2.19% (varies according to type of credit card, who issued the card, nature of your business, etc. )
Minimum Monthly Discount Fee: $25.00


Based on your post in another thread you've done 829 inspections this year, 6.5 months. That's a possible 127 transactions a month. Add on the minimum of $120 per month for homegauge services (for the 6 inspectors listed on your website and you're right about the same $2200 in fees Square would be charging. Remember, that 2.19 % you're being charged is the minimum fee and can and will change according to their own disclosure.

[H.G. Watson, Sr.]

In the news, settlement class action retail merchants, temporary (8 mos) reduction in fees to the merchant for Credit Card (CC only, not applicable for debit cards) transactions - also allowed to charge POS higher gross to customers (reversing long-standing Visa, MC, and others' prohibition of passing on costs/transaction fees/processing fees or charging higher to credit card-paying customers at point-of-sale or time-of-transaction)


Many stories/articles independant & based on AP wire reports.

One such story/link in Chicago-Sun-Times (currently free, limited access to story): Consumers could pay more under credit card settlement - Chicago Sun-Times (http://www.suntimes.com/13775247-761/consumers-could-pay-more-under-credit-card-settlement.html)

FYI, July 14, 2012:



Visa, MasterCard and major banks agreed to pay retailers at least $6 billion to settle a long-running lawsuit that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards. As part of the settlement, announced late Friday, stores from Rite Aid to Kroger will be allowed to charge customers more if they pay using a credit card.

The pact, which is being called by lawyers involved in the case the largest antitrust settlement in U.S. history, is seen as a major victory for merchants that have long complained about the billions of dollars in so-called “swipe” or “interchange” fees that they pay to banks for purchases made using plastic. But at a time when shoppers increasingly are using credit and debit cards, merchants will face a dilemma: Whether to charge shoppers extra for using plastic, and if so, how to do so without angering them.

Marilyn Landis, who was last year’s chairman of the National Small Business Association, said that the settlement is a victory for small businesses across the country because it could ultimately lead to banks lowering the fees they charge stores for customers’ credit card purchases.

Landis, who owns Pittsburgh-based financial services firm Basic Business Concepts, said that would be a big relief. She’s now paying 3.75 percent each time a customer pays with a credit card. If bank card companies reduce the fees they charge her to 2.75 percent, she would save a dollar on every $100 in sales.

“That’s huge,” she said.

According to the National Retail Federation, the nation’s largest retail group, swipe fees costs for stores total about $30 billion per year. Mallory Duncan, senior vice president and general counsel for the group, said the settlement is a step in the right direction.

“What we need are changes in the rules that bring about transparency and competition that would be here for years to come,” he said.

The dispute between stores and banks dates back to 2005. That’s when large retailers, including Kroger Co., Safeway Inc. and Walgreen Co., began filing price—fixing lawsuits against Visa, MasterCard and other banks.

The retailers claimed the credit card issuers worked together to fix the fees that stores pay to accept credit and debit cards. The fees, which vary depending on the type of store and the type of card issues, average about 2 percent of the price of a purchase.

Visa and MasterCard make money on the fees that stores pay for each customer that uses credit or debit cards for their purchases. The fees are set by card processing networks but collected by, and split with, the banks that issue the cards.

The card companies long have defended the fees they charge stores.

They say stores benefit from being able to accept credit and debit cards from customers, who often spend more when they’re using plastic instead of cash or checks.

Retailers fought to charge customers who use plastic for their purchases extra. They’ve argued that the ability to charge customers who use plastic more for their purchases would reduce their costs for accepting the cards.

But up until now, Visa and MasterCard have banned stores from charging customers who use credit cards more. Merchants, however, have been allowed to offer customers discounts if they pay with cash. Some gas stations do this, for example.

As part of the settlement, credit card companies have agreed to reduce [u]swipe fees for eight months. The temporary reprieve on fees is valued at $1.2 billion. The settlement does not apply to debit cards, which have grown in popularity for small-value transactions.

“These new rules will give merchants the tools they need to put pressure on the credit card networks to lower interchange or swipe fees, which are the second-or third-highest cost of doing business for many retailers,” said Patrick J. Coughlin, senior trial counsel at Robbins Geller Rudman & Dowd LLP, and one of the lawyers for the plaintiffs.

Joseph W. Saunders, chairman and chief executive of Visa Inc., said in a statement Friday that he’s comfortable with the agreement, which he believes will not affect the company’s earnings outlook.

“We believe settling this case is in the best interests of all parties,” he said.

Noah Hanft, MasterCard Inc.’s general counsel, said in a separate statement on Friday that the decision to settle “was based on our belief that MasterCard and our stakeholders are best served by an amicable resolution.”

“Although we have strong defenses to all claims, a settlement avoids years of litigation and uncertainties that are inherent in such cases,” he said. “We believe that today’s settlements should resolve all issues with the merchant community.”

[Dan Cullen]

The HomeGauge services are not directly connected to the credit card clearing costs. We would want to use their server anyway for storing and accessing our reports. You make it sound as though the two costs are intertwined and they are not. Apples and oranges. Even if we went with the smart phone swiper we would keep the HG monthly services.



Not really. To run them through homegauge you have the following fees:


Based on your post in another thread you've done 829 inspections this year, 6.5 months. That's a possible 127 transactions a month. Add on the minimum of $120 per month for homegauge services (for the 6 inspectors listed on your website and you're right about the same $2200 in fees Square would be charging. Remember, that 2.19 % you're being charged is the minimum fee and can and will change according to their own disclosure.

[Scott Patterson]

I have had Square for about 2 years and have not had a problem. I don't average $80,000 a month(kind of hard to imagine that amount for any inspection company) but I do average around 6-8 charges a month. They held funds when it was first started a couple of years ago. They revised their program. If I have a charge today it will be in my account tomorrow. One of the quickest CC providers I have every seen. I have had 3 providers over the past 15 years and Square is by far the best for me.

That review that is posted has misinformation and it does look like it is more of a slam the competition type review.. Listen to folks that use the dang thing and you know are real people!

Bottom line is that you need to do what works best for you and your business. For me it is Square... You can even send a receipt for a Cash sale from your phone or iPad.

[Dana Bostick]

I haven't looked into it yet, but I have seen an ad about a phone with built-in swiper that intrigues me.

Ted, in my personal opinion, such a device would be a bit too "gadgetry" and be more of a dedicated device design for a high volume merchant that works at remote locations frequently such as trade shows etc. I would also be concerned about the proprietary nature of the card swiper or its supporting software. If your phone dies or you change providers will the new provider support the system?

As for Square, I have been using them for about six months now with absolutely no problems. They do have their limitations but for our businesses they are sufficient.
Because Square limits their transactions to only certain types or activities, they are somewhat limited in their usefulness. They do not offer an online virtual terminal Gateway that would allow you to key in a transaction from your computer should that be necessary. Because I operate several different businesses and need that service, I am forced to have a different merchant account provider for those businesses and restrict my use of the square system to only on-site, swiped card transactions for my inspection business.

Typically, a swiped transaction has a lower discount rate than a keyed in transaction to compensate for user error etc. As an example; a keyed transaction might have a discount rate in the range of 2.75% (like Squares) while a "Card present – swiped transaction is lower, typically in the range of 1.75% or even less.

Square's rate of 2.75% per transaction compensates for the lack of a transaction fee and a monthly fee that the others would charge. If you only run a few transactions a month, this is acceptable. If you run a high-volume of credit card transactions, you might be better off with a more standard merchant account since the monthly fees and transaction fees would be amortized over many more transactions and ultimately cost less per transaction. This is something you would need to crunch the numbers on to determine.
Good Luck

[Joseph Melbourne]

Square sounds real good and was thinking of signing up. But good point made, sometimes I'm asked to take credit card over phone. Any other company suggestions.

[Ken Rowe]

You can take cc payments over the phone with Square. Just a little higher processing fee.

[Dominic Maricic]

Paypal has a device called Paypal Here that lets you swipe or manually enter a card on site. I call it the triangle as a joke (I'm sure paypal had the same thought). It works just like the square.

[Lon Henderson]

I let my credit card processing account expire about 3 or 4 years ago. BTW, my two cents is avoid at all costs anything associated with Global Pay, which is tough, since they are huge. But here is the thing about credit cards for me. At 2.75%, a $300 inspection costs $8.25 out of my pocket. That's my Subway lunch money. A $500 inspection is $13.75 and a $700 inspection is $19.75! Several times, when clients have asked about using a credit card, I tell them how much the fee is and they say some little expletive and "no wonder you quit taking cards."

The interesting thing to me is that when I took cards, during that three year contract, only six customers actually used a card. This year I have had six ask about using a card, so I have had more interest in it, but I am having a hard time stomaching the fees. I asked all six if they would be willing to pay the fee if I took their card and all said they would rather just write a check and keep the fee for their own Subway lunch.

Not taking credit cards hasn't cost me a single inspection ever. (as far as I know)

[Jim Luttrall]

Lon, I feel your pain over the contract and fees but I just chose to ditch the contract and go with Square. No contract or fees unless I use the product.

I tell clients when booking the inspection that I will accept cash, check, or credit card. And that I prefer checks. 90% pay by check with the rest divided between cash and cards. The nice thing about cards though is the convenience of not having to take time and gas to do the deposit. I've begun thinking of dropping the preference notation off of my notice, basically I'm lazy when it comes to book keeping and "office work" so the convenience of square is beginning to win me over!
Yes, I am cheap and don't like the fees but I have built fees into my pricing up front so it is just a cost of business that I don't fret over anymore.

[Lon Henderson]

I don't even have the cost of gas for a deposit. Several years ago, Chase set me up with a direct deposit check reader for free with no deposit fees and now I never leave my chair to do a deposit. I haven't been through a Chase drive through or inside the bank since.

I understand the cost of doing business and generally agree. But since, I have no evidence that not accepting credit cards has cost me any business, it keeps things simpler just not doing cards.......and more money in my pocket.

I'll add that I never received payment from the last card I ever processed, about 6 months before my contract expired. Global Pay acknowledged that I had processed the card, that I had a confirmation, that the card was in good standing and they were sure sorry that I never received payment, but oh well, they'd get over it.

[Michael Sloane]

I've used both Square and Intuit in my previous job, and its been my experience that most people were more comfortable with Intuit as it is a name they recognize (Quicken, TurboTax, etc) and its printed right on the reader. Granted I was putting a lot more money through it at that job, and dealing with a shadier clientele. (Bail bondsman in Dallas.)

That being said, the only difference between the two for me and my inspection company is 2.7% with Quicken and the ability to pick up the phone and call them if there is an issue.

[John Kogel]

I got an emergency call last week, the inspector had not showed for a 2PM job. I was free, not far away and always ready to go. And always ready to trump the competition. When it came time to pay for the late, emergency service, the out-of-town buyer who was there with her daughter, apologized for not having her check book.
Could I follow her about 8 miles to a cash machine? That is, after I waited for the biz with the realtor was settled? They just had to go over the contract and locate the property corner posts, and whatever...?
Then the daughter offered her credit card, which was gratefully accepted. I will say about 80% of my clients pay by CC. They prefer it and so do I. The cost is rolled in to my fee, and I get paid 100% of the time.

Cash or a check is a bonus for me!

In Canada, I use First Data. I might save a few bucks with Square, but maybe not. It depends on volume which is better.

[Wade Hancock]

I use it.
No worries so far.

[Donald Mead]

Just got one, never accepted credit cards before. Now I use my phone for credit cards, camera, sale calls haven't used it as flashlight yet.

[Ted Menelly]

The year and a half since I read this thread. Maybe 2 people in that year and a half as asked me to pay with a credit card. Check or cash. No fees no worries no problems no more expenses, no accounting. Deposit, done. I have never regretted not taking credit cards.

[Joseph Melbourne]

I agree with Ted.

[Nick Ostrowski]

In 9+ years of inspecting, I think I've lost two jobs, tops, because I don't accept credit cards. Oh well.

[Dominic Maricic]

That might be true but what you can't quantify are the number of people that would have gone with you rather than the cheapest inspector in town because you didn't offer them the option to delay actually paying for the inspection and to get frequent flier miles from it. There are few inspectors that have done over 400 inspections this year that I've talked to that don't accept credit cards. It's all part of your marketing if done right.

[Ken Rowe]

That might be true but what you can't quantify are the number of people that would have gone with you rather than the cheapest inspector in town because you didn't offer them the option to delay actually paying for the inspection and to get frequent flier miles from it. There are few inspectors that have done over 400 inspections this year that I've talked to that don't accept credit cards. It's all part of your marketing if done right.

Extremely well said.

[Ted Menelly]

I absolutely never put forth the payment options until i sign the folks up for a home inspection. Then I tell them cash, personal check, money order or cashiers check. They almost always go for the personal check and never question any of my choices. The rest go for the cash. Problems with payment or check being bad. Almost one hundred percent no as far as problems as long as I have been working doing anything.

Just saying. In the past when I took credit cards for a while I used to get the low cost homes that are twice as long to inspect and twice as long a report when it is 1500 sq ft compared to a 5000 sq ft home. Which I got 4 times the money for.

The reason why I took credit cards is because everyone said it was a must have. I had "accept credit cards" everywhere. Still at that time even with all the marketing the percentage was so low that I might as well not make comment on it.

Just saying.

[Jim Luttrall]

Times are changing Ted:D
Time to get with the 21st century.
I have even dropped my "checks are preferred" from my list of payment options. Card processing with the Square is just so easy it is worth the price for me. I still accept Cash, Check, or card and leave the choice to the client.
I am more and more frequently coming across folks that use their debit card for everything and have not written a check in years or don't have checks. Old codgers like me are fading fast with the next generations using electronic payment for everything and cash being the choice for lower income types. Heck, even food stamps are given on a card these days.

[Ted Menelly]

Times are changing Ted:D
Time to get with the 21st century.
I have even dropped my "checks are preferred" from my list of payment options. Card processing with the Square is just so easy it is worth the price for me. I still accept Cash, Check, or card and leave the choice to the client.
I am more and more frequently coming across folks that use their debit card for everything and have not written a check in years or don't have checks. Old codgers like me are fading fast with the next generations using electronic payment for everything and cash being the choice for lower income types. Heck, even food stamps are given on a card these days.

I actually do live in the 21rst century. As I said I used to take credit cards. Almost no one paid with them. Now folks order up an inspection and before they order the inspection not one, well a rare occasion one, person asks what type of payment I accept. I tell them after they order the inspection.

As far as the 21rst century goes I just ordered up all the components and built maybe the fastest coolest running computer around, my second in 6 months. I am well connected to the pace of the day and all I was doing was expressing the facts that I personally have found in my daily run of business.

No one cares whether I accept plastic or not. No one grunts or groans or second thinks the purchase at all.

AS far as all else.

How is it going lately Jim. I was just up toward you way in Wylie at the Exotic cat rescue place insync exotics. Lyons, Tigers, bob cats, lynx's, leopards oh my. Great place.

In-Sync Exotics Wildlife Rescue and Education Center Wylie, Texas  75098 (http://www.insyncexotics.com) in case anyone is interested.

Always accepting donations to help out with all those rescued kitty cats.

[Dan Harris]

[QUOTE=Ted Menelly;213518]I actually do live in the 21rst century. As I said I used to take credit cards. Almost no one paid with them.

No one cares whether I accept plastic or not. No one grunts or groans or second thinks the purchase at all.
QUOTE]

How do you deal with out of state customers that do not attend the inspection?

[Ted Menelly]

Very good question

I have a very decent amount of out of state clients. They either mail me a check or they have their Realtor take care of the payment to me.

Never a Hitch. Ever! No one seems to mind as I get referrals from them once they are here.

You gotta think. When you are out you are going to pass you bank. A quick 2 minute stop at the bank and deposit the check. If it is out of the way you just stop at the bank another day. Not a hassle or inconvenience at all.

One thing I find with out of state clients is never a hassle. Never calling around to a half dozen other inspectors. I tell them how much and the check is here a few days later. Usually and I should say most of the time before I do the inspection. Sometimes a day or 2 after. So? I can live with that. I do not press them on it. I even send the report off the night of the inspection.

I should add this. I would say 50% or more and I am guessing a lot more and make a direct transfer to my account. When that happens I have the money in my account the day I set up the inspection. All done on the computer they are sitting in front of ordering the inspection.

[Jim Luttrall]

Just funnin' with you Ted. I did not take credit cards for the first 10 years of inspecting and never really had a problem with it.
Even waited for payment until closing and rarely had a problem... then I moved to the big city and a different way of life.
Of course, you are in Cow Town that has a whole different feel than Big D. Everything here and especially in Collin County is "bigger, faster, better" (at least that is the feel).

I suppose I could get by without taking cards but it is expected in my local.
Different strokes for different folks!
Still Square processing model is great.

[Ted Menelly]

Just funnin' with you Ted. I did not take credit cards for the first 10 years of inspecting and never really had a problem with it.
Even waited for payment until closing and rarely had a problem... then I moved to the big city and a different way of life.
Of course, you are in Cow Town that has a whole different feel than Big D. Everything here and especially in Collin County is "bigger, faster, better" (at least that is the feel).

I suppose I could get by without taking cards but it is expected in my local.
Different strokes for different folks!
Still Square processing model is great.

I know you were Jim.

Funny though

Bigger, Faster, Better

I do a lot of work in Westlake. Two years ago and probably now it was considered the highest per capita income in the US. I just inspected a home there and it was the baby as in smallest in the entire neighborhood at 8300 sf and 8 car slots, plus guest quarters and pool. Two years to build. We might have smaller areas of the bigger, faster, better but we do have them. Already getting referrals from that one. Gotta love it.

Yeah yeah. Some of the old farts like you :-) still call it cow town and rightfully so.

I do not do Dallas. Maybe the north sections and Plano, Carrollton, Frisco and I was just in McKinney a week or so ago. Dont really like Dallas. It reminds me as a much younger man driving in and out of Boston to work.

635, 75.....forget about it. Said in a snickering older x Yankee voice. I guess that was 22 years ago when I moved out of there. Does that still make me a Yankee????

[Jim Luttrall]

Said in a snickering older x Yankee voice. I guess that was 22 years ago when I moved out of there. Does that still make me a Yankee????
Well, you said it yourself ;) Once a yankee, always...
:D

[Ted Menelly]

Well, you said it yourself ;) Once a yankee, always...
:D
Damned Yankee