New iPhone Device Reads and Charges Credit Cards

Oct 22

New iPhone Device Reads and Charges Credit Cards

Though it seems credit cards these days offer endless functions and benefits, new technology is continually developed like the tiny new plug-in that allows your mobile device to now process credit card transactions. The new plug-in and app combo issimply known as Square and could change the faceof financial transactions starting Friday morning.

What is Square?

Square is a free plastic device, slightly smaller than a quarter, that plugs into the iPod Touch, iPhone, iPad and Android. It comes with a free downloaded application that allows small businesses and even individuals to process credit card transactions no matter where they are.

With each transaction, merchants are charged 2.75 percent of the purchase price, plus 15 cents to swipe a credit card. It requires no contract or set-up fee. Also, there are no monthly charges to worry about.

This device is predicted to largely benefit businesses that need point-of-sale credit card systems, especially because it accepts major credit card issuers Visa, MasterCard and American Express. However, it could also benefit consumers just as much.

How You Could Benefit

The creators of Square, Jack Dorsey (the creator of Twitter) and Jack McKelvey, wanted to create a device that could benefit both businesses and consumers. So how exactly could you as an individual benefit from a device that reads credit cards even when you don’t own an actual business?

Suppose your friend owes you money that you have had a hard time collecting for months. You’ve finally reached your wit’s end and demand payment, but your buddy replies with the famous “I don’t have any cash on me” line.

Nowall youhave to tellhim is “No worries, I take credit cards,” pull out your Square device, take the owed amount from his credit card andhave him sign on the phone’s touch screen. Just like that, your money is deposited into one of the bank accounts you’ve designated without the hassle you’ve suffered for months.

The company hopes tha these conveniences will make Squarethe best credit card application and device on the market. They already expect it to bring in $1 billion in daily transactions by June 2011. While this sounds pretty ambitious, with its ease of use and convenience, these guys might indeed be on to something big.

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