# Square Mobile Credit Card Processing



## Molda (Jun 6, 2013)

Rectangle Ware Eve Pay. Made for high ticket services/products.


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## A1PW (Mar 19, 2013)

I have been using square to process credit card and debit card transactions with my mobile pressure washing & roof cleaning business since the beginning of the year. So far I like it and it is very easy to use on the go. There is a 2.75% percent charge for each swipe, but I charge each customer the additional 2.75% for procesing fee and it all seems to working out so far.


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## 480sparky (Feb 1, 2009)

A1PW said:


> ..... There is a 2.75% percent charge for each swipe, but I charge each customer the additional 2.75% for procesing fee and it all seems to working out so far.



Did they change the law that makes doing so illegal?


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## EthanB (Sep 28, 2011)

480sparky said:


> Did they change the law that makes doing so illegal?


I think it's just against the the terms of service making it a breach of contract. Not a law. I could be mistaken though.


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## TimberlineMD (Jan 15, 2008)

EthanB said:


> I think it's just against the the terms of service making it a breach of contract. Not a law. I could be mistaken though.


It used to be against 'terms of service', but congress got into it awhile back and made it OK for merchants to pass on the 'fee' to their customers. 

Most merchants have not done so, because they are afraid of the 'lash back' from their customers.


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## gear junkie (May 20, 2013)

I don't charge extra when a customer pays by CC but do give a discount when they pay by check or cash.


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## Tinstaafl (Jan 6, 2008)

gear junkie said:


> I don't charge extra when a customer pays by CC but do give a discount when they pay by check or cash.


That's the same as 1099'ing an employee.


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## EthanB (Sep 28, 2011)

Tinstaafl said:


> That's the same as 1099'ing an employee.


I'm not sure about that Tin. 1099'ing an employee is illegal while I'm not aware of any laws against giving a discount for cash or check payment.


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## Tinstaafl (Jan 6, 2008)

It's the same in the sense that you are manipulating the wording in your favor, in an attempt to disguise the practical truth--legality aside.

A cash discount is exactly equal to a credit penalty. 1099s are a bit more complex, but at the end of the day, if the employee/sub is doing everything he should, the only difference is that he delivers the pound of flesh to the government instead of the boss doing so.


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## kiteman (Apr 18, 2012)

Is anyone familiar with Best Card? It seems to be new in our area promising lower rates, free equipment, etc.


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## ForgeElec (Jul 16, 2013)

Tinstaafl said:


> It's the same in the sense that you are manipulating the wording in your favor, in an attempt to disguise the practical truth--legality aside.
> 
> A cash discount is exactly equal to a credit penalty. 1099s are a bit more complex, but at the end of the day, if the employee/sub is doing everything he should, the only difference is that he delivers the pound of flesh to the government instead of the boss doing so.


Gas stations and other businesses have been giving a discount for cash for years without any issue, it's completely legal.

Either way, as of January of this year it became legal in most states to charge a CC processing fee equal to what your fee is. 

For Square, if you add on 2.75% it won't be enough. You need to divide the job total by .9725

It's a minimal difference, but it works out to be exactly correct and it helps with book keeping.


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## EC Craftsman (May 20, 2013)

ForgeElec said:


> Gas stations and other businesses have been giving a discount for cash for years without any issue, it's completely legal.
> 
> Either way, as of January of this year it became legal in most states to charge a CC processing fee equal to what your fee is.
> 
> ...



So if a gas station is doing it. . . It's ok. . . Right? Many people don't pay large amounts of taxes owed, and hire help under the table. . . Some for the entire length of their career and don't ever encounter "any issues" . . . Doesn't mean their actions where "completely legal". In my opinion gas stations are the worst example of exemplary business......


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## EC Craftsman (May 20, 2013)

On a more related note:


I think square is perfect for my business. I've never had any issues (I know I shouldn't speak to soon-ill most likely have an issue on the very next swipe just because I said that) 

My wife also has a sort of mobile business and takes on many small transactions in spurts. Works great for her. I take payments on average $1000-$3000 and don't have any complaints except for the fact that it does take a few days to get into my account. Wife's payments are the same. I was turned on to square because it was very simple.


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## kbenz (Jul 1, 2013)

I have square and paypal mobile. square works good. have not used the paypal yet


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## TNTRenovate (Aug 19, 2010)

Tinstaafl said:


> It's the same in the sense that you are manipulating the wording in your favor, in an attempt to disguise the practical truth--legality aside.
> 
> A cash discount is exactly equal to a credit penalty. 1099s are a bit more complex, but at the end of the day, if the employee/sub is doing everything he should, the only difference is that he delivers the pound of flesh to the government instead of the boss doing so.


Only if one raises their rates by the 2.75% first. If they are offering a true cash discount it is not the same.

Also, CC companies are changing their policies after a recent law suit. You can charge a fee for someone using a CC without breaking TOS.

And as far as it being illegal to 1099 an employee, I don't know of a law that makes it illegal. If you do classify it wrong, they just charge you penalties, fees and back taxes. It is not a black and white classification.


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## ForgeElec (Jul 16, 2013)

EC Craftsman said:


> So if a gas station is doing it. . . It's ok. . . Right?


 Yes, they've been doing it for decades. They have found that it was a legal loophole. 



> Many people don't pay large amounts of taxes owed, and hire help under the table. . . Some for the entire length of their career and don't ever encounter "any issues"


 Do they put it up on the sign in front of their business? I'm not talking about tiny mom&pop places, I am talking about Exxon, Mobile, Lukoil, etc. Large corporations with huge legal teams.

Do you believe you know more than them?


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## TNTRenovate (Aug 19, 2010)

ForgeElec said:


> Yes, they've been doing it for decades. They have found that it was a legal loophole.
> 
> Do they put it up on the sign in front of their business? I'm not talking about tiny mom&pop places, I am talking about Exxon, Mobile, Lukoil, etc. Large corporations with huge legal teams.
> 
> Do you believe you know more than them?


It wasn't a legally loophole as it wasn't illegal, just violated CC TOS.


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## ForgeElec (Jul 16, 2013)

TNTSERVICES said:


> It wasn't a legally loophole as it wasn't illegal, just violated CC TOS.


It was illegal in most states to charge a higher rate for CC purchases until January of this year, as I cited in my original post.


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## TLP (Jun 17, 2013)

Wouldn't it be nice if members would stop arguing over what gas stations do or any other business and just give some facts about ours we could rely on? In the time they spent posting BS, I did a quick goggle research and found some reliable info to include the real scoop on this topic. 

From what I gather, 10 states have banned merchants from adding a CC processing fees and more are on their way, so don't hold your breath if you are in a state that does not prohibit it. (see below). I'm in one of the banned states. 

Most of my bids are from roofs, gutters, siding in the $10K median, adding a 3% hidden charge and a cash discount would put me out of the competition war. 

We don't have alot off CC request since most of our clients $ comes from insurance claims. Only way I see out of these for the others is to suck up the charges and hope it gives us a competitive marketing edge for doing so, more sales volume to offset the charges. Sounds like the same competition will be happening with CC and the fees may go away on their own. 

As far as I know it is not against site rules to post media articles from time magazine and CNBC. If so remove and use goggle to get the right answer. 

http://business.time.com/2013/01/25/a-4-surcharge-for-using-a-credit-card-legal-but-not-likely/

http://www.cnbc.com/id/100485094


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## ForgeElec (Jul 16, 2013)

TLP, it's funny that you come in here lambasting others for doing what you yourself just did. Get off your high horse, no one is impressed.

As mentioned earlier, it was legal before, now, and will continue to be legal to give a cash discount. 

Yes, it's a loophole. You may say "but that doesn't make any sense!" but it is still a fact.

As I mentioned earlier, gas stations have been doing this for decades, they do it now, and they will continue to do it.

What I said about it being legal in most states to charge a credit card fee in January was correct. I have been doing it ever since. If a customer wants to pay with CC, I simply inform them that there will be a minimal charge. A few people didn't like the charge so they paid with check instead, all of the other people didn't mind. 

It's up to them, all I know is that I will NOT eat 2.75% off the top.


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