Accept Credit Cards With Square and Your iPhone

  • Advertise with us
Review by odie posted 07-14-2011 10:14 PM 6285 views 19 times favorited 30 comments Add to Favorites Watch
Accept Credit Cards With Square and Your iPhone No-picture-s No-picture-s Click the pictures to enlarge them

I’ve seen this advertized today on LumberJocks’ pages. I’ve been using it for 2 months and absolutely love it. If you’ve read my blog “So you want to go pro” I complained about the outrageous costs for accepting credit cards. Square is a new company that has NO monthly fees as all other companies do. This uses a card reader (they supply for free) and your iPhone. Compare my experience below:

Old Credit Card Company
$56.29 / mo. if used or not
All cards had different fees including extra for rewards cards (1.5% to 3.5%)
Credit Card machine on loan ($15.00 / month for wireless air time.
I was only able to accept Visa and Mastercard (Others were a hassle).

$0.00 / NO monthly fee
If cards are swiped the fee is 2.75% / keyed is 3.5% + $.15
The card reader is free and plugs into your iPhone earphone jack
I am able to accept Visa, Mastercard, Discover, and Amer. Express.

The old company would deposit the full amount charged into my checking account within two days. At the end of the month they would go into my account and take out their fees.

Square deposits amount charged, minus their fee, into my checking account within two days. They do not go into my account at the end of the month.

If you’re a small business and wanted to accept Credit Cards, this is a great way to go.

-- Odie, Confucius say, "He who laughs at one's self is BUTT of joke". (my funny blog)

View odie's profile


1692 posts in 4617 days

30 comments so far

View Bertha's profile


13588 posts in 3470 days

#1 posted 07-14-2011 10:19 PM

I had my spam alert ready when I clicked on this. Boy, was I wrong. My apologies. This sounds like a really great idea for many of the pros here. What an advantage to be able to accept credit for a job. I just DIDN’T buy an iphone after everyone here told me to, so I know a lot of people already have them. Thanks for this!

-- My dad and I built a 65 chev pick up.I killed trannys in that thing for some reason-Hog

View Verna's profile


202 posts in 3551 days

#2 posted 07-14-2011 11:18 PM

Thank you, Odie for this review. I’ve been wondering if Square was all it was advertised to be.

-- Verna -- Indianapolis, IN

View ABarr's profile


14 posts in 3434 days

#3 posted 07-14-2011 11:48 PM

I’ve used it as well and quite like it. I’m using it on a Samsung Galaxy phone – doesn’t have to be an iPhone. One thing to be aware of is that (I assume this is still true) they hold payments that are over a certain amount, $1000?, for up to 30 days before transferring into your account.


View PurpLev's profile


8574 posts in 4426 days

#4 posted 07-14-2011 11:52 PM

sounds like a super useful device and service. thanks for the review. good to know what options are out there for the smaller businesses.

-- ㊍ When in doubt - There is no doubt - Go the safer route.

View TMcG's profile


191 posts in 3778 days

#5 posted 07-15-2011 01:47 AM

Gotta love innovation when it actually delivers a real world benefit !

This comparison is also interesting info if you have varying transaction sizes and monthly volumes


View Allison's profile


820 posts in 4576 days

#6 posted 07-15-2011 02:44 AM

Been told of this and know several people using it and they swear by it. My daughter-in-law uses it for her customers in her hair salon business.

-- Allison, Northeastern Ca. Remember, Amateurs built the Ark. Professionals built the Titanic!

View Jack Barnhill's profile

Jack Barnhill

366 posts in 4143 days

#7 posted 07-15-2011 04:27 AM

Thanks for posting this, Odie.

-- Best regards, Jack -- I may not be good, but I'm slow --

View closetguy's profile


744 posts in 4669 days

#8 posted 07-15-2011 05:33 AM

I use Propay. They have the same type of reader for the iPhone and should have an Android version soon. Like Square, there is no monthly fee. I was set up next to an artist at a show last year who was using an iPad with a reader. It was pretty neat also. He had all of his product inventory pictures and information loaded into it and just touched a picture of the item that was being sold. It processed the card and emailed the receipt, with picture, to the customer’s email address. Technology advances continue to amaze me.

-- I don't make mistakes, only design

View stratiA's profile


101 posts in 4153 days

#9 posted 07-15-2011 06:16 AM

I have several friends who use it. They all love it. I am a crafter as well. However I am only a small fish and do only a couple shows a year and less than 1200 in sales. I have not established a business formally yet and I am aware of why I should. Either way I am still confused as to whether I can use this. After reading the rules and such from what I understand you only need a SSN to use this service. What are the rules of reporting for tax purposes. From what I understand they do not report to IRS. My lawyer buddy mentioned something about a 1098 or 1099 form etc. I am not ready incorporate until next year. However I have 2 shows booked for Nov and I believe it could pick up my sales a few hundred bucks. Or at least and possibly help me in my decision to do a few more and bigger shows. Can anybody clear this up for me before I get on the phone with my accountant. Thanks.

-- Strati Alepidis, Burlington, Ma, Member Red Sox nation

View Russ's profile


142 posts in 3976 days

#10 posted 07-15-2011 05:08 PM

I use payanywhere and love it, most of my sales are by credit card and it definitely increases sales.

-- Happiness is being covered in sawdust

View Chris Wright's profile

Chris Wright

541 posts in 4258 days

#11 posted 07-15-2011 06:38 PM

I love these phone card readers and think they are great, and when I get to where I can sell at shows and fairs I’ll be looking into getting one, but the only down side I see, and I admit, it’s a limited one, none of the ones I’ve looked at so far (Square, Intuit and ProPay) do not work with my phone, the Blackberry Torch. If anyone out there has a credit card reader system that works with the Torch I’d love to hear about it.

-- "At its best, life is completely unpredictable." - Christopher Walken

View superstretch's profile


1531 posts in 3470 days

#12 posted 07-15-2011 07:11 PM

Square is awesome! I’ve used it a few times for random things like splitting bills, accepting CCs for computer work, etc.

There’s one sticky bit that might not sit well with people: You can accept an unlimited amount of cash, but anything over $1000 in a week is held for 30 days. The good news is that if you email them and explain what you do, how much you get in a week, etc., they’ll raise that limit.

FYI, this is also available as an Android app! Don’t like the iOS people make you think you’re out of luck :)

-- Dan, Rochester, NY

View RexMcKinnon's profile


2593 posts in 3972 days

#13 posted 07-15-2011 07:51 PM

Love the concept but it does not appear to be available in Canada. If anyone know an equivelent up here please post it.

-- If all you have is a hammer, everything looks like a nail!

View bunkie's profile


415 posts in 3924 days

#14 posted 07-15-2011 08:05 PM


A 1099 is a form issued by someone who pays you for work done (it’s also for payments from 401Ks and other sources). It wouldn’t apply in this case unless you were contracted by someone to do a job. If you are selling items at a craft show, 1099s don’t apply.

It would be your responsibility to report your income from sales of your work on your tax return by completing a schedule C form (Profit/Loss from a Business). That’s where you would report income and deductible business expenses (such as the fee charged for accepting credit cards).

Of course, you should consult an accountant or read the relevant documentation on the IRS website first.

-- Altruism is, ultimately, self-serving

View odie's profile


1692 posts in 4617 days

#15 posted 07-15-2011 08:15 PM

@ StratiA: I would wait until you’re legit.

@Russ: Credit cards are a must.

@Chris: I would call Blackberry and ask them. There has to be something out there.

@superstretch: I haven’t run into that yet. I’ll see what happens with August and 4 shows.

@Rex: Yup, only in the USA right now.

-- Odie, Confucius say, "He who laughs at one's self is BUTT of joke". (my funny blog)

showing 1 through 15 of 30 comments

Have your say...

You must be signed in to post the comments.

DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics