We have a noodle truck at the office on Thursdays.
And it is pretty damn good.
And they take credit/debt cards. You’ve seen it before, haven’t you? iPad with a credit card swiper, pick your tip, sign, have your receipt emailed to you?
This observation isn’t original to me, and I’m not sure it is terribly profound, but: services like Square have revolutionized credit card processing. I remember the old days, when setting up a merchant account was hard to do, and you needed a phone line, and you needed bulky equipment, and the credit card processors charged enormous fees. Now? I’m kind of far from retail, so I’m not sure if Square has resulted in downward pressure on fees (though I suspect it has).
Someone I know who is in retail and takes credit cards reviewed an early draft of this post and provided this information: they pay 2.61% for credit card processing, but each month’s statement also contains a laundry list of “cryptic inexplicable fees” that they have to pay as well. Square claims to charge a flat 2.75% for swiped transactions (Visa, MC, AmEx, Discover) with no additional fees. (I say “claims” because I have not used Square and can’t verify that for myself.)
Square also claims to deliver your money in one to two business days, no matter what type of card it is. The retail person I know says that AmEx fees depend on how long you let AmEx keep your money: they let AmEx hold their money for 15 days, and pay between 2% and 3%.
But fees aside, anyone who has a bank account can take credit cards these days, and all you need is an iPhone or iPad (or a supported Android device, though frankly that looks a little painful). Little to no bulk, no landline, and the money goes into your linked bank account.
The big thing, as I see it, isn’t the merchant charges: it is the portability. Your credit card machine is your phone or tablet, and it fits in a trailer. Or in a pocket. And you don’t need anything else – you don’t even need a printer, you can just email receipts to your customers. (Okay, you might want a charging cable, depending on how good battery life is on your device. But other than that, nothing.)