No Merchant Account Needed
Accept credit cards from friends and strangers
Square credit card acceptance has become a popular topic since the campaigns of President Obama, Mitt Romney, and others have started accepting donations via the newly ubiquitous card readers that plug into smartphone headphone jacks. These readers can be bought for a nominal fee at many big box retailers, or are given away free from several websites, and the fee for processing cards is between 2 and 3.5% of the transaction depending on how the card is keyed in. For amounts over $1000, there are usually special circumstances which may prevent the charges from settling into your bank account overnight, since there are obviously fraud concerns when it comes to individuals swiping credit cards into each other’s smartphones. For example, any restaurant waiter/waitress could easily scan a credit card from a patron when the card is being sent back for payment of the tab. Therefore, there are some fraud protections in place to keep individuals from accruing a large amount of fraudulent charges in their accounts, which may also be compromised. The average consumer should also be wary of accepting large amounts of money in payment for big ticket items like cars or other valuables, since the charge could be disputed and once again the card itself could be stolen. At least with a cash transaction, the seller has real money vs. a chargeback . From many reports in the media, there is a customer service gap with square credit card readers, so it is difficult to dispute chargebacks or get the limit raised on your account. The advantages to the square credit card readers are that you can accept money in locations like flea markets, fruit stands, or concert parking lots where you may be selling T-Shirts or other memorabilia.
Notes and Special Information
Special note: Disclaimer.