In my last post I began to discuss payment systems and focused on Apple Pay. Today we are going to go over the differences between other payment systems.
Amazon’s Local Register
Amazon’s Local Register allows small businesses to use tablets and phones, including the latest iOS, Fire, and a few Android devices as digital cash registers. Local Register does not require a long term contract and there are no setup or monthly fees however, there is 2.5% swipe rate for major cards and a 2.75% rate for manual transactions. Aside from its basic function, Local Register provides in-app reporting and your deposits will be available the following day.
Square
The Square reader is free at sign up and there is no long-term contract. Square has a 2.75% swipe rate fee, or a fee of 3.5% + 15 cents for manual transactions. Besides mobile point-of-sale transactions Square has the capability to sync with other business applications, such as Quickbooks and Xero, and offers functions such as appointment scheduling, online invoicing, item management, sales reporting, and pre-ordering systems. Most importantly, the website helps you determine what you need depending on your type of business, be it retail, professional services, or food and beverage. If you are considering using Square, consider pre-ordering the new EMV compatible reader for $29.00.
PayPal Here
PayPal Here offers quick access to your receipts and 1% cash back on signed purchases if you sign up for their debit card. Paypal Here has a 2.7% swipe rate, or a 3.5% + 15 cents rate for manual transactions. If you have many tourists beware there is 1% cross-border fee plus the standard swipe rate, however Paypal Here allows you to receive and account for all types of payments, including check and PayPal app payments. Paypal Here provides point-of-sale solutions for merchants of all types and sizes and also supports multi-locations, inventory management, reservations, and quick serve options. If you ever have trouble using the app, there are quick video tutorials to assist you.
Intuit GoPayment
Intuit Go Payment gives you the option to pay per transaction or save more per transaction by paying a monthly rate of $19.95. Their pay-as-you-go option includes 2.4% swipe and 3.4% key-in rates and a 25 cents fee per transaction. By paying a monthly rate you only pay 1.75% swipe, 3.15% key in, and 25 cent transaction fees. GoPayment accepts ACH bank transfers but unlike Paypal Here and Square, GoPayment has fees for chargebacks, ACH bank transfers, and PCI Compliance.
When determining which payment system to invest in it is important to consider many factors such as the sales volume, fees, customer habits and preferences, security for both you and your customers, and government regulations such as the new EMV requirement. For more information visit the links provided.