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    3 Replies Latest reply on Oct 18, 2013 12:47 AM by shirleyw

    Merchant services and the newbie

    pandoraj Adventurer

      Hello all,


      I was going to go through Square, however, after reading Amspcs blog post about what Square can and will do to your hard earned money, I am shying away from Square. I am in the start up phase and have a vague idea of what my sales volume should be at a given month which is roughly $1,100 to $1,500. With the those low sales volume's it doesn't give me much moeny for merchant services and that is also why I thought about Square. Additionally, Square doesn't require a credit check to able to use their services. My bank said that they can aid me in merchant services, however, I would have to lease the equipment at $40 a month, get a phone/fax line (which I planned on skipping in the first place and I have no idea what it will cost me because I wanted to skip the phone line), 2.7% per transaction, and verify my personal income statement.

      I have also looked at Phone Swipe, however, I believe they want to do a credit check. I could just write them and say it sucks, please do not check it because I am repairing it at this time. Any was..does any one else know of merchant services that do not do a credit check? I can do a personal income statement if the merchant wants to know other personal information.


      Thank you for reading



        • Re: Merchant services and the newbie
          amspcs Ranger

          Pandora, Allow me to clarify some of the issues you pose. First, all true merchant accounts will require a credit check. That's because a merchant account is technically a loan account (specifically an open line of credit) just like an auto loan, home mortgage, or any other loan product  So credit does pay a role. That said, again just like any other loan, there ARE places people with sub-standard credit can look to, albeit at higher fees.  The old adage about higher risk equals higher reward applies here. Now, if your credit is absolutely horrible, you have recent b/r or whatever, you can pretty much forget about any processor showing an interest.  But moderately bad credit is very writable. If you fall in the moderately bad range, you really should give Phone Swipe a shot---all they can do is decline you, and they might just find a way to help you.  Here's the link to apply: As far as Square goes, you are correct in that they don't consider credit as closely as merchant accounts do.  But that's not necessarily good, and in fact is usually very bad.  Since there is little or no risk assessment with Square, the only other way they have to protect themselves from risk is to put a short leash on merchants money and withhold funds at the drop of a hat, often indefinitely or for very long periods of time.  That's why the blogs are full of horror stories about Square murdering businesses by denying them their cash flow, compounded by the fact that the merchant has zero recourse because there IS no customer service or anybody to talk to at Square.  I can't imagine why any sane businessperson would risk their livlihood on something like that, particularly when alternate processing means, usually less expensive, are so readily available.

          • Re: Merchant services and the newbie
            shirleyw Newbie

            Pandora, I too have a small business with less than $ 150.00 in credit card sales per month.

            I have been using Square for the last 1 1/2 year and, never had any problem with them withholding my money.  I also know a logo other businesses that have been using it for the same amount of time and, they too have no gripes.

            I will agree with AMSCP, in the past when i have had technical issues with setting up "Mobile Staff" they were NOT very helpful.   Not to mention they do not have a live person to speak to.


            Prior to using Square, I had used 2 other merchant services.  Some months I made $ 0 in sales and still had to pay a minimum of $ 55.00 in fees whereas Square you only pay per swipe.

            Since you do not currently take credit cards, I would apply for Square and use the system as little as possible just to see if you encounter any problems before you start promoting to your clients that you take credit card.

            Best of luck