Intuit Inc. (NASDAQ:INTU) launched a service in 2009 called GoPayment. GoPayment allows small and medium sized business owners accept credit cards on their mobile devices using a card reader that attaches to a compatible mobile device. Intuit is now offering the card reader and is waiving the monthly fee, but there is a catch.
Customers will be charged a rate of 2.7% for each card swiped and 3.7% for each card that has to be keyed in. A 15-cent fee is applied per transaction too. This deal is better for those who do not use credit card swiping that much.
For those who swipe credit cards a lot, the $12.95 monthly service is probably a better option. There are per-transaction charges applied along with the monthly charge, but its not as high. The business owner is charged 1.7% for each card swiped and 2.7% for each card keyed in with the monthly plan. And there is a 30-cents per transaction charge.
“By offering a free card reader and no monthly service fees, we want to give more small businesses a head start in the new year by enabling them to take mobile payments without any upfront investment,” stated Intuit general manager of Payment Solutions Chris Hylen. “And this is just the beginning. We’ll introduce new ways all year long to help more small businesses get paid quickly and inexpensively using their favorite mobile devices.”
GoPayment is compatible with the latest version of QuickBooks and there is security built in. Credit card information is not stored in the phone and all of the data is encrypted. The GoPayment reader works on the iPhone, BlackBerry, iPad, several Android devices, and the iPod Touch. Intuit’s GoPayment service has processed about $80 million in mobile payments so far.