Monday, September 28, 2015

Square: Free EMV card reader after rebate

If you are a small business owner or have a card reader have you ordered your new EMV chip reader yet?  My husband and I currently use the PayPal reader for our processing needs at craft shows and sat down to research our options this evening.  

If you're not sure what I'm talking about, starting October 1, 2015 credit card processors will shift the fraud liability from themselves to you as a small business owner if you did not read the chip on a credit or debit card at point of sale (if you swiped it instead).  I know for us one fraud allegation could not only ruin our business but our personal finances as well.

Here's what we found:

Keep in mind this is what's best for us based on how we use our reader -- once or twice every two or three months.  It's not steady and it's not a large volume or dollar amount.

If we stayed with PayPal we would have to purchase a new reader for $149 and if we processed $3000 in a set time period we would receive $100 back.  Due to our low sales volume this solution will not work for us.

Amazon has an EMV reader but has not disclosed what the price will be once it rolls out (it's not available yet).  This may be an option for us in the future.

We checked three different banks but they all charged a monthly fee.  There may be a bank out there that doesn't -- I just didn't see one in my search this evening.

We have an Etsy card reader as a backup.  They will not be issuing an EMV enabled reader.

We finally went with Square -- we preordered an EMV reader (they are on backorder) for $49.  If we process $49 in three months (doable for us) we will receive the $49 back in free processing (i.e. they won't charge us the standard 2.79% per swipe).  They are still accepting preorders if you need to switch too!

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