What is more efficient?

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signtwist

Filing Flight Plan
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Geoffrey Mason
For a start up business, do you think it's better use a tablet POS system rather than the usual credit card machine? What is more efficient? Please do share your thought on this, Thanks!
 
Square is the way to go with the POS systems they have now. They are running circles around traditional merchant service providers which are a royal PITA. They do all in one register, POS, inventory, reports, CC processing.

I am not in retail but we dumped our merchant service provider which was even set up directly through our bank for Square and could not be happier. My home town is all mom and pop shops and many are going that way and say they love it.
 
Compare the fees you are going to get charged by the different systems and providers.
 
I used to make it a point to call a new company's support line before recommending a POS solution to clients. Other than pricing and timeliness of deposits, ready availability of support was the consideration that I thought was most important for small merchants who would effectively be out of business if the system malfunctioned. I could help them with the installation and initial setup, but if the system itself went down, I needed to know the client could get someone on the horn to help them out.

Some of these outfits (including Square, the last time I checked) don't even have phone numbers. That would be a deal-killer for me. Although in fairness, I don't know anyone who's ever had a problem with Square. I just don't like the idea of not being able to call them if there were a problem. (Also, they may have phone support now. I've been out of that loop for a while.)

The system I personally used when I did in-person, card-present transactions was the predecessor to PayPal Here. I forget what they called it then, but it was basically just a swipe terminal connected to a phone. It was primitive compared to the current PayPal Here program, which features a self-contained terminal that also accepts chip cards. They also have some more full-featured solutions through third party vendors that read bar codes, do inventory management, and that sort of thing. I didn't need those functions because I primarily sold services, not merchandise. I just needed a way to charge the plastic.

I still have a PayPal merchant account, but I only run between $2,000.00 and $5,000.00 a month in plastic through it these days, most of it from customer-keyed online payments. I also still have virtual terminal access, although I rarely use it anymore. I no longer have the card reader, but I rarely accept cards in person these days, anyway. If I did, I would invest in their new reader because it's less expensive than hand-keying the transactions.

The thing I like about PayPal is the instantaneous availability of funds. I can transfer money to my checking account, withdraw it from an ATM, or spend it anywhere that accepts PayPal or MasterCard, within seconds after the charge clears. The company I'd been using before I gave PayPal the merchant processing business held the money for two to five days. They also continually demanded increases in my security deposit because many of my charges were in the thousands of dollars. The fact that I have never once had a chargeback, dispute, or other complaint didn't matter to them. Their goal seemed to be to keep as much of my money in their hands as they could, and to keep it as long as humanly possible.

PayPal never played those games. It took them about 20 minutes for me to be approved for all four logo cards, they never asked for a security deposit, the card reader arrived a couple of days after I opened the account, and the money was (and still is) available to me instantly. There was none of that ******** that my previous processor put me through. I can hand-key a charge in the thousands of dollars through their virtual terminal, and transfer it to my checking account a second after it clears.

I probably should mention that I've been a PayPal customer since early 1999 and have been using them as my merchant processor ever since they started offering that service; and I've never had a single chargeback, dispute, refund request, fraud accusation, or any other sort of complaint. I don't know if they're quite as accommodating with new accounts that don't have a track record.

So suffice it to say that I like PayPal. They're pricey, but they've treated me well for many years.

If, however, I ever do get tired of PayPal, my first call will be to our own beloved Jesse. Merchant processing is one of Jesse's business endeavors; and anything that Jesse does, he does honestly, ethically, and very, very well. He's probably the smartest individual I've ever met -- and I've met some pretty smart people. So whatever you wind up choosing as your solution, be sure to talk to Jesse first before making your decision. You'd be short-changing yourself if you didn't.

Rich
 
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I'm not too knowledgeable in this area, but I will say square is probably one of the easiest and best choices for just getting started, you can't beat their rates either. Lately I've noticed some small businesses in my town using this tablet with a card reader in one. Not sure what it's called but it looks like it's something worth looking into.
 
The tablets look a lot more finished, clean and user friendly, the old style readers probably have the same interface as they did in 1980.

Also every time I've had a "uhh could I see your car again" or "hit the red button for credit, oh waaaaait! No but the green button for credi..t, man you already hit the red button, now we have to start over".
Well it's always been one of the terminal type machines.


If the rates are about the same I'd go tablet all day.

I've had a squared reader for my iPhone for a few years, for the few clients who can't pay cash for my freelance pilot/instructor stuff, it's a clean and easy interface, I don't use it a whole bunch, that said I got nothing bad to say about it.
 
Shawn said:
Square is the way to go with the POS systems they have now. They are running circles around traditional merchant service providers which are a royal PITA. They do all in one register, POS, inventory, reports, CC processing.

I am not in retail but we dumped our merchant service provider which was even set up directly through our bank for Square and could not be happier. My home town is all mom and pop shops and many are going that way and say they love it.
Click to expand...

How about Tsys? they say that it's a good merchant service provider as well,
 
Does square accept e-wallet payment like Samsung pay and Apple pay? I found a merchant provider that does so, and I'm thinking of giving them a call as soon as possible to inquire about their services.
 
What kind of volume? If you are Walmart volume, their card readers can take the abuse.
The Square devices I have seen are on free-floating devices, I would be afraid of them falling off the counter putting you of business out for a while or disappearing unless they are nailed down. I have seen tiny businesses with Square devices that required multiple, many swipes to get them to work as well. I don't have the feeling they are nearly as robust.
 
Let'sgoflying! said:
What kind of volume? If you are Walmart volume, their card readers can take the abuse.
The Square devices I have seen are on free-floating devices, I would be afraid of them falling off the counter putting you of business out for a while or disappearing unless they are nailed down. I have seen tiny businesses with Square devices that required multiple, many swipes to get them to work as well. I don't have the feeling they are nearly as robust.
Click to expand...

Magstripes' days are numbered. I wouldn't invest in any POS system without EMV capabilities. Savvy customers prefer it, too.

One of the reasons why Sparrow-Fart's merchants got on the EMV bandwagon early on is because almost everyone in town had our card numbers compromised when the local supermarket's old-fashioned magstripe POS system got hacked. I've written about that mess a few times. I was the first one to report it; but as more complaints started coming in right behind me, the case worked its way up from the County Sheriff, to the State Police Cybercrimes Unit, to the Secret Service, in about a day.

We all got an education about exactly how ****ty and insecure magstripe is and were advised to request EMV cards from our card issuers. The local mom-and-pop stores took that as a hint to upgrade to EMV in a hurry. Ironically, the only store in town that hasn't upgraded yet is the one that got hacked. But only the summer residents and campsters shop there anyway because the prices are so high, so no one really cares.

Rich
 
I would get into the POS systems that have the rental, it will allow you to grow when you need to!
 
According to a charter captain that I recently used, with his square setup for credit cards, if he uses the magstrip and I contest the charge as fraudulent, he eats it. If he uses the EMV chip, square eats it.

I have no insight into their merchant agreements.

From a tech perspective chips are much more secure since they are active and not passive. I wish they'd use chip & PIN for two factor authentication, but so far, no.

John
 
You are a startup. Money = life, even pennies. Choose the reliable one with the lower fees. End of story.

Don't be tempted to go with the "cool" one and pay more. I have no idea on the fees, but I suspect Square or other type must be more.
 
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