Is there about to be a new wave of local SPs accepting credit cards?

[CorriGuy]

Noticed that Square launched in Canada yesterday - that little dongle you attach to your smartphone and can process credit card payments with. Easy to sign up to as well. Seems suited for independent businesses that otherwise couldn't get (ie, afford, or qualify for) terminals and cc approval.

A few local SPs do accept credit cards. Personally, I'd never ever use one with a SP because of privacy concerns (not so much for theft concerns, but I guess those are there too); but with the cc information, they know the real you. Not saying necessarily the SP will use that info, but you never know, plus if they get busted for anything serious, and the authorities get a hold of their records, there's worry there.

Or is this much ado about nothing? Do you think we'll be seeing local SPs pulling out their iphone with the Square dongle to process payments? Is this potentially a good thing? If privacy is secured somehow (I am not 100% sure how the square cards work) it could be a boon for SPs because probably more people would hire their services if they didn't have to have cash on hand. Or perhaps longer sessions could be booked instead of the "budget" 1 hour times.

What do you think?

 

[Tugela]

Credit card tansactions create a paper trail. Clients wanting to hide their activity at all costs won't want that. SPs who are less than enthusiastic about paying taxes won't want that.

There are a lot of advantages to both sides in a cash transaction, since it allows you to hide your activities from prying eyes.

On the plus side a credit card transaction eliminates the risk of robbery, but I think in the end the desire for discretion will be more valuable.

 

[cherise]

i highly doubt many indies will use this with maybe the exception of established regulars.. even with the agencies its high risk as 1) the card holder can cancel the transaction 2) with so many credit card scams and clones there would be plenty of new pooners id imagine (ultimately getting a "free ride") 3) there would be a month wait for payment or more less transaction fees ...in addition to Tugelas very valid observations

 

[CorriGuy]

i highly doubt many indies will use this with maybe the exception of established regulars.. even with the agencies its high risk as 1) the card holder can cancel the transaction 2) with so many credit card scams and clones there would be plenty of new pooners id imagine (ultimately getting a "free ride") 3) there would be a month wait for payment or more less transaction fees ...in addition to Tugelas very valid observations

Square pays you the next day after the transaction, direct into your account. Not one month later. From what I can tell it only works with a physical credit card too (no inputing of CC information via screen).

 

[Elmore]

How many times do we hear pooners comment on taking a bit of a break because they are broke?
CC transactions open the door for the less fiscally responsible people to pay for sessions that they don't have the cash on hand to pay for. It would be pretty sad to use borrowed money just to poon.

 

[cherise]

Square pays you the next day after the transaction, direct into your account. Not one month later. From what I can tell it only works with a physical credit card too (no inputing of CC information via screen).

all of the credit card fraud these days are duplicatec cards...so there would be a physical card! any joe blow can purchase a beeper sized credit card reader/writer off the internet for a few hundred bucks!

 

[rickoshadows]

Hopefully, we will soon be able to pay from mobile phone to phone like they already do in much of Africa. RIM apparently will be providing the secure network to this in NA soon. It should be much like using a your moblie phone as a debit card, only you can transfer to other phone users as well.

 

[Trevor2136]

From the SP perspective it would also create a paper trail, which isn't a good thing for those who forget to report some of their income for tax reasons.