1. Akshay Masand's Avatar

    Amazon, the online retail giant, recently unveiled a new mobile credit card reader and companion app-based payment processing system dubbed Local Register. The system allows users to accept credit card payments on their compatible iOS device of choice much like its more established competitors. Users will need to attach a small plastic card reader to the headphone jack which converts input from a credit card’s magnetic stripe to audio waveforms. The respective companion app then interprets the reader’s signals and takes care of the communication with Amazon’s backend.

    Instead of offering the reader at no cost, which is what competitors such as PayPal and Square do, Amazon will be charging users $10 up front and credit the amount back in processing fees. Furthermore, the company is set to charge just 1.75% of each transaction through the end of 2015, at which point the fee will be increased to 2.5%. It should be noted that PayPal and Square charge 2.7% and 2.75% respectively whereas Intuit’s GoPayment charges 1.75% for subscribers and 2.4% for users who are on the pay-as-you-go plans. As a result, Amazon's Local Register offers rates that are quite competitive. It isn't a surprise though given the size of its online presence.

    Furthermore, Amazon promises to deposit funds into users’ bank accounts the next business day following a transaction and will also allow the funds to be made available for purchases on Amazon’s website “within minutes” of the transaction. The program and service is set to make its debut and be limited to businesses in the US at first and later expand to other countries. With a vast online retail store and a large target audience, it wouldn't be a surprise to see Amazon's Local Register take off and become a competitive player in the mobile card reading market.

    Are any of you going to try Amazon’s mobile card reader?

    Source: Amazon
    Last edited by Akshay Masand; 2014-08-13 at 05:08 PM.

    Twitter: @AkshayMasand
    2014-08-13 05:02 PM
  2. steve-z17's Avatar
    Seems like they're offering a pretty good competitive rate. We'll see how it holds up against Paypal and Square.
    2014-08-13 06:04 PM
  3. jackbauerctu's Avatar
    I have both paypal and square. I personally like that I can have the funds in my paypal account instantly and use my paypal MasterCard debit card to make purchases immediately.
    2014-08-14 08:40 AM
  4. greyhounds's Avatar
    How easy would it be to modify one of these apps so that the card reader records the credit card info for later nefarious use?

    I'm always hesitant to give someone my card to read with their iphone!
    2014-08-14 07:03 PM