Used Square Reader For First Time

[rmc20021]

I am so pleased with the square reader. I used it for the first time yesterday to collect payment from a dcm who has always had one excuse after another when it came to payments.

This probably won't 'cure' the excuses, but it should help a lot.

I'm going to try to get some other families on it as well. Absolutely loved it.

[craftymissbeth]

I ordered mine immediately after I saw your first post about it. I'm excited to receive mine.


Do you pay the 2.75% fee or does the parent?

[mamac]

I'm also curious if the extra 2.75% is passed along to the parents as a "convenience fee" or something.

[Cradle2crayons]

When I used to use the payment reader things on my iPad a while back, I would charge a yearly "supply fee" which took care if the charges. My attorney said at the time here it was legal to pass it to parents (it's not okay in some states), that some parents may pitch a fit. So the supply fee worked and it took care of the fees.

[Meeko]

I really want to offer a debit/credit card option for my clients. But I have heard complaints of companies holding on to your money for up to a week or more before depositing into your bank. Sometimes the next day....sometimes 3 or 4 days......sometimes a week or more......

Anyone had any experience with this? It's the only thing holding us back. I need to know when my money is coming in!

[mamac]

I really want to offer a debit/credit card option for my clients. But I have heard complaints of companies holding on to your money for up to a week or more before depositing into your bank. Sometimes the next day....sometimes 3 or 4 days......sometimes a week or more......

Anyone had any experience with this? It's the only thing holding us back. I need to know when my money is coming in!

According to the card I got in the mail the funds are available the next day for the Square Reader. Checking their website it says that they are available next day if processed during business hours. I'm thinking of getting one eventually... I just need to upgrade my "flip phone" first! ::

[mamac]

When I used to use the payment reader things on my iPad a while back, I would charge a yearly "supply fee" which took care if the charges. My attorney said at the time here it was legal to pass it to parents (it's not okay in some states), that some parents may pitch a fit. So the supply fee worked and it took care of the fees.

I think it is legal in my state to pass the fee to the customer as long as the payment is processed as "credit". I think the law was just changed where businesses can no longer charge a fee or require a minimum purchase for using a debit card unless they don't enter their pin and it goes in as credit.

I would have a hard time charging everyone a supply fee to cover the payment fee if there were parents that didn't take advantage of the credit card payments. Then again, charging only those that use it may backfire as well because they may not end up paying with a credit card to avoid the additional fee. I would rather not give that option if it ended up costing me money. Some things to think about before I get one I suppose...

[Blackcat31]

The site says this:
Surcharges

Beginning January 27, 2013, due to a settlement approved by the United States District Court for the Eastern District of New York involving Visa, MasterCard and various financial institutions, merchants in the United States and U.S. Territories are now allowed to impose a surcharge on consumers when a credit card is used for payment.

There are currently 10 states with laws that prohibit surcharges of any type. These laws are not affected by the settlement and remain in effect: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. Additional states are considering similar such laws, so you should continue to monitor this issue if you plan to charge a surcharge.

If you do decide to apply a surcharge it is your responsibility to meet all legal and card network requirements which include the following:
• Surcharges may only be applied to credit card transactions, not debit cards or pre-paid cards.
• You can only charge your customer as much as you are charged for processing the credit card transaction.
• The surcharge has to be disclosed to the customer before the transaction via prominent signage.
• The surcharge must be listed separately on the transaction receipt. At this time, we do not provide a surcharge feature within the app itself. One option is to use the tax feature.
• The surcharge must be applied universally to credit cards from all payment Networks (Visa, MasterCard, American Express, and Discover).

[Lyss]

The site says this:
Surcharges

Beginning January 27, 2013, due to a settlement approved by the United States District Court for the Eastern District of New York involving Visa, MasterCard and various financial institutions, merchants in the United States and U.S. Territories are now allowed to impose a surcharge on consumers when a credit card is used for payment.

There are currently 10 states with laws that prohibit surcharges of any type. These laws are not affected by the settlement and remain in effect: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. Additional states are considering similar such laws, so you should continue to monitor this issue if you plan to charge a surcharge.

If you do decide to apply a surcharge it is your responsibility to meet all legal and card network requirements which include the following:
• Surcharges may only be applied to credit card transactions, not debit cards or pre-paid cards.
• You can only charge your customer as much as you are charged for processing the credit card transaction.
• The surcharge has to be disclosed to the customer before the transaction via prominent signage.
• The surcharge must be listed separately on the transaction receipt. At this time, we do not provide a surcharge feature within the app itself. One option is to use the tax feature.
• The surcharge must be applied universally to credit cards from all payment Networks (Visa, MasterCard, American Express, and Discover).

Most of my parents would want to use a debit card therefore it wouldn't be worth it to me. It be like loosing a day or or half a day (depending on the family) per family which could add up too a lot and I'm not willing to work for free so they can have the convenience. If I knew they'd all use a credit card I'd try it.

[Blackcat31]

Most of my parents would want to use a debit card therefore it wouldn't be worth it to me. It be like loosing a day or or half a day (depending on the family) per family which could add up too a lot and I'm not willing to work for free so they can have the convenience. If I knew they'd all use a credit card I'd try it.

I'm not sure what the rules are though if you process the debit card like a credit card....kwim?

They do have a customer service number....perhaps you could contact them and ask. https://squareup.com/help/en-us/topi...ccept-payments


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Also for those concerned about when the money actually shows up in your acct or is available to you, why not have the parent swipe their card say on a Wednesday so the funds are available to you on Friday?

Just a thought.....

[LysesKids]

I use Square on a regular basis… funds are available within 24 hours AS LONG as a transaction is processed Monday thru Thursday… if it's done on Friday or a weekend, the money doesn't show in the bank account until Tuesday ( they only process weekdays). You need to hook your bank account to the account for them to transfer the money - AND yes, I add the 2.75% as a tax and my parents pay for it as they were forewarned. I take cash as the other payment option - no checks for the last 5 years and no questions why

BTW, you have to run the debit cards as a credit otherwise Square won't run it; Saphire cards do not work , however anything that has the MC, Visa & Discover logo's work fine

[LysesKids]

The site says this:
Surcharges

Beginning January 27, 2013, due to a settlement approved by the United States District Court for the Eastern District of New York involving Visa, MasterCard and various financial institutions, merchants in the United States and U.S. Territories are now allowed to impose a surcharge on consumers when a credit card is used for payment.

There are currently 10 states with laws that prohibit surcharges of any type. These laws are not affected by the settlement and remain in effect: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. Additional states are considering similar such laws, so you should continue to monitor this issue if you plan to charge a surcharge.

If you do decide to apply a surcharge it is your responsibility to meet all legal and card network requirements which include the following:
• Surcharges may only be applied to credit card transactions, not debit cards or pre-paid cards.
• You can only charge your customer as much as you are charged for processing the credit card transaction.
• The surcharge has to be disclosed to the customer before the transaction via prominent signage.
• The surcharge must be listed separately on the transaction receipt. At this time, we do not provide a surcharge feature within the app itself. One option is to use the tax feature.
• The surcharge must be applied universally to credit cards from all payment Networks (Visa, MasterCard, American Express, and Discover).

Here's my payment policy…
FEES are paid in Cash or thru Credit/Debit card with an occasional barter deal thrown in; NOTE: Credit payments will incur a 2.75% fee to run a card. I am charged a fee to take them, but it's unfair to make cash clients pay for something they don't use and as such, fees listed are for CASH PAYMENTS. *This childcare home does not accept checks for payments. Receipts are given for all payments.

[Blackcat31]

Here's my payment policy…
FEES are paid in Cash or thru Credit/Debit card with an occasional barter deal thrown in; NOTE: Credit payments will incur a 2.75% fee to run a card. I am charged a fee to take them, but it's unfair to make cash clients pay for something they don't use and as such, fees listed are for CASH PAYMENTS. *This childcare home does not accept checks for payments. Receipts are given for all payments.

So you ARE or aren't passing the fee off onto the parent?

Is that legal to do?

I don't use the square reader at all but I've always been told that you can't pass the fee off to the parents.

So unless the law has been changed.....I don't see a way around even if you word it the way you did.

[Oss_cc]

So you ARE or aren't passing the fee off onto the parent?

Is that legal to do?

I don't use the square reader at all but I've always been told that you can't pass the fee off to the parents.

So unless the law has been changed.....I don't see a way around even if you word it the way you did.

A lot of gas stations around here have a cash price that is lower than the credit/debit price. So that sounds like it is a way to make it work without it being a surcharge. IE: Cash/Check price is $500/month, Credit/Debit price is $515. I haven't used my square reader for child care, just garage sales and such and have not ever charged a fee, but it's worth looking into for those who do use it.

[Crazy8]

when I got the square reader a few years ago I remember reading I was not allowed to charge clients the fee, but looks like maybe that has changed. I only let parents use it as a last resort, its just a bookkeeping pain in the butt to me and totally wasn't worth the $25/week in fees I'd be racking up if I couldn't pass them on to parents.

That 2.75% actually comes out to more once you process the transaction too.

For ex, weekly fee is $150. Adding 2.75% parent is paying you $4.12 extra. When you run it for $154.12 square actually charges you the 2.75% on that amount, not on $150, so they charge you $4.23. I know its only a few cents but over the course of a year from multiple families it would add up.

Also need to look into how you have to claim that fee as income, not sure how that works???