Hi Josh,
Anyone who is considering taking credit cards or already does take credit cards should read this. http://en.wikipedia.org/wiki/Merchant_account It explains a lot of things that I wish I knew 10 years ago when I opened up my first merchant account. The credit card companies are not going to explain most of this to you. They will tell you a swiped rate, a keyed rate, how much it is per transaction and act like that is everything. Lots of these companies will nickel and dime you and screw you big time if they can. For instance Wikipedia says...
Early Termination fee
The early termination fee can be charged by some providers if the merchant ends the contract before the end of the contract term. While contract terms of 1–3 years are typical, some providers have terms of up to 5 years with a one year prior notice to cancel or the fee will be assessed. Some providers also assess all statement fees and monthly minimums remaining when the contract is terminated. Some providers may also assess a "lost profit" fee based on an assumption of profits they concluded they would have earned during the full term of the contract.
I just closed the account I have had for nearly 10 years and opened a new one with Merchant Anywhere. I have yet to find out what my old account is going to expect for the termination fee but after reading this I'm a little worried.
I see where square charges 2.75% for swiped transactions and 3.5% for keyed. http://www.merchantanywhere.com/index.htm charges 1.69% swiped or 2.2% keyed and 30¢ per transaction. Based on my sales this past weekend the difference in the interest rates should have saved me more than the $24.95 monthly fee MA charges. However I received a statement for a transaction I did about a week ago. I can already see that there are some small nickel and dime type fees that weren't mentioned. I would bet that square has a few small surprises on their bill too. We should talk when I get my first full monthly statement.
Clark
--- In artshow_photo@yahoogroups.com, Josh Trefethen <joshtrefethen@...> wrote:
>
> I have been looking at square for a long time as a good way to process
> payments - was sent my card reader last year, but had not had a chance to
> test it out until this past weekend at the show in Frisco, TX.
>
> The week prior, I filled out a form to have my deposit level increased from
> the $1000 default. About 2 hours after the form was submitted, I received a
> notification that my limit was lifted - and I now had unlimited transaction
> throughput - with immediate deposits to my account.
>
> So, this weekend, I used the square system exclusively for all sales at the
> show.
>
> I have both an iPad and an iPhone - but chose to use the iPhone since it has
> a camera. When processing transactions, I would take a photo of the
> artwork, type in the total amount, swipe the card, then have the customer
> sign their name on the screen. I'd then input the email address or phone #
> to send the electronic receipt. Everyone loved the process and commented
> that it was "so high-tech" and "like the apple store". I feel like the
> process takes just a bit longer than my usual swipe and print, but not so
> long to make it a nuisance.
>
> I sold several thousand $ of art (way over the default limit of $1000), and
> all my money was deposited into my account within 2 days. Seems to work
> great. When I log into the website to look at my transactions, I can see
> all of the details and the photos of the work sold. Helps with inventory
> management, and also helps the customers remember what they purchased.
>
> Long story short - I am converted! I am going to shut down my merchant
> account and store and forward, and use this system exclusively. I always
> have a cell signal at the shows I do, so feel comfortable in making the
> switch. Plus I wont have the PCI compliance or statement fees each month,
> whether I use the my merchant account or not.
>
>
> Regards,
>
> -Josh
>
> http://JoshTrefethen.com
> http://facebook.com/JoshTrefethenPhotography
>
>
> [Non-text portions of this message have been removed]
>
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