Canadian and European small business owners can finally start using Square. The company has finally developed a chip card reader that will be available for $29. The chip card reader will also be useful later in 2015 when major credit card companies will implement chip cards in the U.S.
For these reasons, Square had to move in the chip card direction, and the company will also be phasing out older Square readers that only read the traditional swipe cards.
Businesses that don’t purchase the new chip card readers will be liable in the future (as the older readers are phased out) for fraudulent charges made with chip cards that have been read by a EMV reader - three major banks, MasterCard, Visa, and EuroPay, are behind the new changes, so those are the cards that business owners have to watch out for if they do not have an EMV reader.
Aside from Square, the other EMV reader option that small business owners have is to purchase a larger EMV reader. Those EMV readers that are on the bulkier side tend to be a lot more expensive, though, usually in the hundreds, so a $29 Square chip card reader is much more affordable. Anyone that orders the new Square reader online can also purchase the reader for less than $29 (as low as $25).
How Square Chip Card Readers Work
In case you haven’t used Square yet, these attachments can easily plug into your iPhone or Android phone headphone port, and setup is a snap. The other advantage to Square is that this reader doesn’t come with any kind of serious contract complete with a ton of clauses. It’s hard to see why some business owners might move in the more expensive EMV reader direction, but some might still go that traditional route.
Square is also selling a chip card reader stand for $39 to add to the mix. A lot of people have been waiting for a Square chip card reader, so this should come as good news to a lot of people. There are still transaction fees associated with the Square reader, but those tend to be a lot less than using other types of readers. Square is also a really portable option, so anyone looking to hock candles at a craft fair will love using this EMV reader option, that’s for certain.
The Move to Chip Cards
Why are credit card companies so adamant about moving from swipe cards to chip cards? As has been proven by European and Canadian card companies, chip cards are far more secure than their swipe alternatives. But it has been really frustrating for Americans traveling to Europe or to Canada not to be able to use a swipe card, since most international retailers will no longer take swipe cards. Now, that might all change and everyone might be happier thanks to Square.
If you do run a small business, take the time to check out the new Square chip card reader as an alternative to a more expensive EMV reader. In most cases, the Square option is a much more affordable one.