Things are changing in the world of credit card processing and mobile payments, and it's critical for small businesses to stay ahead. Apple and Square want to help.
The tech giant and mobile payments processor have partnered to release a new two-in-one contactless and chip reader. The device lets businesses take Apple Pay (and other NFC-based payments) and EMV chip payments, the new standard in accepting credit payments.
Here's how Square's new contactless and chip reader works and how businesses can start accepting Apple Pay and EMV chips using it. [EMV: What Small Merchants Need to Know]
How Square's contactless and chip reader works
Square's contactless and chip reader works just like other NFC and EMV chip readers. The company has designed the device to be as easy to use as the Square Reader, Square's older, traditional credit-card swiper.
For Apple Pay (and other NFC-based payments), all customers have to do is place their phones near the reader to activate payment. Customers paying with credit cards can either dip the chip part of the card into the reader or swipe the card using the old dongle.
Unlike the dongle, however, Square's new reader is battery powered and works wirelessly. This means it doesn't need to be plugged in to a mobile device's headset jack, making it more portable for business.
How much Apple Pay and EMV cost
Square uses the same transaction fee across all its products. Whether customers are using Apple Pay, the chip reader or swiping their credit cards, businesses will be charged the same 2.75 percent transaction fee per sale.
The new NFC/EMV reader is free for a limited time for select merchants (contact Square for more qualification requirements). This promotion only applies to the first reader, and additional readers cost $49. Businesses that don't qualify for the free reader can purchase readers for $49 each.
How to get the new reader
Square's new NFC/EMV reader will be available this fall. Businesses can reserve their readers at squareup.com/shop/reader-offer. The older Square Reader dongle will also ship with the new reader for free.