So what have we been saying about square(now referred to as “the shape”), micro merchants, not secure, and not a money maker, here is validation from an excellent source: http://www.forbes.com/sites/stevenbertoni/2014/04/21/why-square-needs-to-sell-itself-and-do-it-quickly/
Well at least the profitability and micro merchants are mentioned. Why is “the shape” attractive to micro merchants, less than $1000 per month in credit card volume, no monthly fees. However, with no monthly fees comes no support, unless one considers text or email support and no chargeback support.
What is a chargeback? A chargeback is a dispute between the card holder and the merchant (business). Normal procedure with an excellent merchant company for a chargeback, a notice is sent out with 10 or so days to respond. Merchant provides documentation for the chargeback and the information provided is reviewed along with the dispute and a decision is made. With “the shape” the chargeback is auto debited without any chance to fight it! Imagine an auto repair business with a $400 complete brake job and it getting auto debited. I think the auto repair owner would be furious!
Glad to see also from this article that corporate America is chasing after mobile acquiring. It is a dead-end, because there is no money in it. It costs about the same to acquire a micro merchant, as a regular merchant who will process much more volume.
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