There is now a device you can plug into your phone to turn your phone into a credit card machine. What? Right!
Chris O’Connell, professional photographer, explains it best with his video
There are many ways to use your cell phone as a credit card machine. Square works for iPhone and iPad. Paypal offers an app that allows you to “bump” phones together to make an instant wireless transfer. Intuit’s GoPayment allows you to capture card information on a variety of cell phones by hand or via a bluetooth card swiper.
Practically speaking, there are a lot of ways this could be awesome, as outlined in this New York Times article. For example, accepting payment for Craigslist sales, obtaining money on the spot from your cashless friend/colleague when you’re splitting the tab at a restaurant, busking, panhandling, or small business transactions.
Of course you have to pay to use them. Using Square costs 15 cents plus 2.75 percent to 3.5 percent of each transaction. For small transactions, no big deal. It would be better than sending someone to find the nearest ATM, missing the chance for a sale, or never seeing that cash that your friend owes you. For large transactions, this might be like paying the high of an account with a credit card processor. GoPayment is more expensive, charging a monthly fee of $12.95 a month, plus a per-transaction fee of 30 cents plus 1.7 percent to 3.7 percent of the payment, depending on the credit card companies’ rates. It would be interesting to find out how they calculate what percentage you are charged.
The New York Times article paints this as a huge step for money to become entirely paperless. My gut reaction for going paperless is a big nooooooo!!!! Let us keep our anonymity and avoid being lab rats for corporations’ marketing interests. Since every credit/debit transaction costs the seller, albeit whatever small percent, it is still a portion of an individual’s money that is pocketed by the credit card industry and I say boo to that. Running cards is a convenience that should be enjoyed by those who choose it, but should not be forced upon all.