I Just Accepted My First Square Payment, Looking for Uses!

[Jon Westfall]

<div class='os_post_top_link'><a href='https://squareup.com/' target='_blank'>https://squareup.com/</a><br /><br /></div><p><img src="http://images.thoughtsmedia.com//adt/auto/1285454579.usr7.png" style="border: 1px solid #d2d2bb;" /></p><p>Back in the springtime of this year, when the world was thawing out and the sun grew hotter with each passing day, I did set up an account with <a href="https://squareup.com" target="_blank">Square</a>. Alas my account languished in the 90% verified state for many months while I waited for <a href="https://squareup.com/letters/the-home-stretch" target="_blank">supply chain issues to be resolved</a>, and I was deeply saddened by the perpetual waiting. However now that the first signs of Autumn are upon us, I have found my waiting to be resolved. Earlier today a Square reader was left in my mail slot, and I processed my first credit card transaction, $1.00 from myself, of which I'll receive $0.82 at the end of the month. My journey begins.</p><p>So aside from the cool sticker and the reader I got today, what do I really have with such a service? Most certainly I can fix the dreaded problem among friends where a bill comes at a restaurant, and rather than ask the waitress to split it, all decide to chip in (on credit of course) and make a quicker exit. I can now triumphantly tell my friends that I'll put it on my card and charge theirs, losing only a small amount in transaction fees (Something I'm willing to do - these are my friends after all). Aside from that problem though, what can I use my Square and Nexus One for? Certainly on-the-spot consulting just got easier ("Ah, you want me to look at your computer"), and I can be the only garage sale on the street that takes plastic. But for me, and perhaps many of us who signed up for Square due to the "Wow, that's cool" factor, what practical uses exist?</p>

[Lee Yuan Sheng]

No one carries cash in the US anymore, do they? Needing to use a device to charge a credit card off friends for a dinner strikes me as ridiculous in my neck of the woods.

[Jon Westfall]

No one carries cash in the US anymore, do they? Needing to use a device to charge a credit card off friends for a dinner strikes me as ridiculous in my neck of the woods.

I carry cash to be used in an emergency only (e.g., car problems requiring a tow, etc..) and a small amount of money for purchases that don't take plastic (between $5 - $30). Everything else goes on the card, which is easier from a number of perspectives - I know exactly where my money is spent each month, and since I don't carry a balance from month to month, I'm actually earning value in the form of rewards associated with my cards.

The only pitfall of this is the scenario I describe where a number of friends get together and don't wish to be a pain and ask for separate bills. In that situation, Square seems to fill a need, however ridiculous it may sound!

[Paragon]

Processing credit card payments like this has been a long time coming, so I'm glad to see it. For small businesses, or businesses that don't operate full time in the retail market, setups like this could be very cost effective.....except for the 18% fee. Until they bring that down to a more normal level it is going to languish in garage sales and use between friends, as you have mentioned John.

[EDIT] After reading a bit further I see it's not 18% ( $1.00-.82=18) It is 2.75% plus .15 cents which is very good for such a service. Now they just have to come to Canada. :)

Dave

[Tony Rylow]

I think this is fine for using as part of a business, but if one of my friends pulled this out at dinner to try to take a payment from me, I would have to laugh. It isn't a big deal to ask for bill to be split, I do this all the time.

[Jon Westfall]

I think this is fine for using as part of a business, but if one of my friends pulled this out at dinner to try to take a payment from me, I would have to laugh. It isn't a big deal to ask for bill to be split, I do this all the time.

Eh, you've laughed at my actions enough times at dinner that I'm immune :D

[Fritzly]

Processing credit card payments like this has been a long time coming, so I'm glad to see it. For small businesses, or businesses that don't operate full time in the retail market, setups like this could be very cost effective.....except for the 18% fee. Until they bring that down to a more normal level it is going to languish in garage sales and use between friends, as you have mentioned John.

[EDIT] After reading a bit further I see it's not 18% ( $1.00-.82=18) It is 2.75% plus .15 cents which is very good for such a service. Now they just have to come to Canada. :)

Dave

I am missing something: he paid $1.00 and will receive $0.82, am I correct? If so the fee is 18%

What do you mean by 2.75% plus $0.15? If the fee is 2.75% who gets the $0.15?
I am definitely missing something ..........

[Jon Westfall]

I am missing something: he paid $1.00 and will receive $0.82, am I correct? If so the fee is 18%

What do you mean by 2.75% plus $0.15? If the fee is 2.75% who gets the $0.15?
I am definitely missing something ..........

The fee is $0.15 per transaction + 2.75%, so on $1.00 it is 18%. However on $20, the fee would be $0.70, 14% of the transaction. On $100, the fee would be $2.90, 2.9%, etc...

Jon.