Whether you're a small, mobile business, or you're just tired of spotting your cashless friends, mobile payment solutions, which let you accept credit cards using your cell phone, are a welcome innovation. Square is one such solution, and for some circumstances it's a perfect one: It plugs into a variety of mobile devices and uses a simple, attractive interface to allow you to accept credit card payments. Card Case, the buyer's interface to Square, is a similarly easy and intuitive way to pay for things, making it easier than ever to buy at your most-frequented haunts. It's free to use, but Square charges a small fee for every transaction. The fees aren't exorbitant, though, and Square's excellent aesthetics and ease of use on many devices make it our Editors' Choice for mobile credit card readers.
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| Square with Iphone |
Setup and Getting Started
The easiest way to start using Square is to go to the Square Web site, or to download the Square app that's available for iOS—iPhone, iPod touch and iPad—and Android, which supports many but not all Android devices. Signing up for an account is as simple as entering tax information—for me, an individual, it was my social security number and some other personal information. Square is very clear about protecting your data, but it's always good to be wary of anything asking for this information. The Square app is the best thing Square has going for it—it's a gorgeous app with an intuitive interface that is easy for both sellers and buyers to figure out.
The easiest way to start using Square is to go to the Square Web site, or to download the Square app that's available for iOS—iPhone, iPod touch and iPad—and Android, which supports many but not all Android devices. Signing up for an account is as simple as entering tax information—for me, an individual, it was my social security number and some other personal information. Square is very clear about protecting your data, but it's always good to be wary of anything asking for this information. The Square app is the best thing Square has going for it—it's a gorgeous app with an intuitive interface that is easy for both sellers and buyers to figure out.
Once you register for an account, Square sends you a free card reader. The reader is a tiny, 0.75-by-0.75-by-0.5-inch white, plastic square that plugs into the headphone jack of your device, and when connected can immediately start accepting payments. The system works over Wi-Fi or a cell phone data connection.
Selling and Getting Paid
Making money is as simple as choosing an amount and swiping a card. If you have items you sell regularly, you can also set up a virtual shelf with all the items for sale, and choose them to automatically register a total. You can swipe a credit card through the reader, or key in the card number manually. You can also accept cash and use Square for tracking and receipts, but the real value is with a credit card. The reader itself worked well, though it occasionally took two or three tries to read the card.
Making money is as simple as choosing an amount and swiping a card. If you have items you sell regularly, you can also set up a virtual shelf with all the items for sale, and choose them to automatically register a total. You can swipe a credit card through the reader, or key in the card number manually. You can also accept cash and use Square for tracking and receipts, but the real value is with a credit card. The reader itself worked well, though it occasionally took two or three tries to read the card.
Once the buyer swipes their card, a receipt is prepared, which can include itemized charges, location, or your company's logo. The customer signs the receipt using their finger on the touch screen (which works great on the iPad, and fine on smaller phone screens), adds a tip if they want to, and chooses to either have the receipt e-mailed to them or sent as a text message. Every receipt also has a unique URL.
Square takes a small fee for every transaction. If you swipe a credit card, the fee is 2.75 percent of the total transaction. If you key in the number manually, the fee is 3.5 percent. (The fee hike is because keyed-in cards are inherently less secure, since you're not swiping an actual card.) Square recently eliminated its per-transaction fixed fee (which was 15 cents), which makes calculating charges even easier—you'll see 97.25 cents of every dollar. The fee is comparable to services like PayPal, which charges 1.9-2.9 percent plus 30 cents, as well as Square's main competitors, Pay Anywhere (Free, 3 stars) and the Mophie Marketplace Complete Credit Card Solution ($79.99, 3 stars). For small purchases of only a few dollars, it's a far better deal since there's no fixed fee.
In the app or on Square's Web site, merchants can track their sales history, easily issue refunds, or download the transaction information as .CSV files that can be imported into Excel, Quickbooks and other software. You can easily link your bank account to your Square account, and Square will automatically deposit your earnings every 24 hours.
Card Case
Square's payment system got a new angle with an update in May, 2011. Called Card Case, the new feature allows Square users to start tabs at restaurants and shops they frequent, to make paying even easier and faster.
Square's payment system got a new angle with an update in May, 2011. Called Card Case, the new feature allows Square users to start tabs at restaurants and shops they frequent, to make paying even easier and faster.
Here's how the Card Case system works (it's iPhone-only for now, with Android coming soon): You go into a Square-supporting shop (there aren't many yet, but that should change), and the first time you pay as normal. You swipe your card through the shop's Square reader, sign the receipt with your finger, and enter your phone number to get a text message receipt. In the receipt is a link to download the Square app and start your Card Case. Log in or create an account, and a billfold-looking screen shows up with a small card from the shop.
Next time you visit that same store, open up Square, tap on the store's name, and select "Start Tab." That lets Square know that you're in the store, getting ready to buy something, and your name will show up on the merchant's Square-running tablet. Within the card, you can also see the menu, what's on sale, and more. When you get to the counter, you just tell cashier your order and your name. The cashier taps your name in the store's app, and it automatically charges your credit card.
Security is an issue here, since paying with your name isn't exactly secure. Square takes a few steps to alleviate that. If your phone's location shows you're too far away to be in the store, you can't open a tab. When you're starting out, you'll create a 4-digit pin for large purchases, without which any major buys can't be completed. You're also prompted to upload a picture of yourself, so the cashier can make sure it's really you. Your tab expires after an hour, or you can close it manually. You'll also get an email or text message after every purchase, so any rogue purchases can be rectified quickly.
Conclusions
Square probably isn't the best way to get your buddy to pay you back for coffee. It is, however, an attractive, simple and useful way for anyone from street vendors to mobile businesses to accept credit cards. It's also, thanks to Card Case, one of the easiest and most fluid ways I've ever paid for something. Thanks to its support for a plethora of devices, ease of use and beautiful interface, it's our Editors' Choice in the mobile payment category. Regardless, always do the math before choosing a device—in this space, the best deal is the best product, and the right deal for you will vary based on what you sell, and how much.
Square probably isn't the best way to get your buddy to pay you back for coffee. It is, however, an attractive, simple and useful way for anyone from street vendors to mobile businesses to accept credit cards. It's also, thanks to Card Case, one of the easiest and most fluid ways I've ever paid for something. Thanks to its support for a plethora of devices, ease of use and beautiful interface, it's our Editors' Choice in the mobile payment category. Regardless, always do the math before choosing a device—in this space, the best deal is the best product, and the right deal for you will vary based on what you sell, and how much.
