PayPal chip reader
The transition to the new chip credit card technology may at first glance seem confusing— I’ve heard several business owners ask questions such as “How will this impact my business?”, “Will this cost me a lot of money?” and “What are my options?”. In short, if you currently use a point of sale (POS) system, the new industry standards will affect you. Check out our recent post about this chip credit card transition for details. You will want to invest in a chip-capable card reader by October 1 of this year (the date when major credit card providers will switch over to their new policy). But on the bright side, there are a couple of light-weight options for chip card readers that are relatively inexpensive, easy to use and even compatible with most current iPhones, tablets and Android devices.
Both Square and PayPal have announced chip/swipe readers that should be coming later this year. These mobile credit card readers simply plug into the headphone jack on your phone or tablet— effectively transforming it into a cash register.
Square demonstrated its new iPhone-compatible chip readers at the Apple convention back in June; its reader looks like a larger version of its popular square swipe reader. The Square chip/swipe reader should handle all major credit cards. Square hardware chief, Jesse Dorogusker, reports that its new battery-powered Bluetooth-connected device should work for all merchants (regardless of size). The Square chip reader will cost $49 and should be released this fall. The company also recently announced that it will absorb any merchant liability for swiped transactions for any of its customers who order the new chip reader until it arrives.
Square chip reader
Following Square’s introduction of its chip reader, PayPal has announced the release of its own chip reader that now will be compatible with Apple iOS and Windows 8.1-supported devices. To emphasize it’s usability with Windows products, PayPal says that merchants will be able to buy the complete POS system with Surface Pro 3 as a complete POS device, which will be available later this year.
The Square chip reader is now available for pre-order, though the PayPal system will begin rolling out later this year. PayPal is currently launching a pilot program for developers to integrate custom software merchant software builds for individual businesses. If you have any questions about chip-compatible POS options for your business or have questions about other devices you may have come across, please contact me and we can walk through this transition together.
