For those businesses that have been using mobile devices to run their businesses, their only choices in accepting credit or debit cards were either Square or PayPal. However, Amazon has decided to throw its hat in the ring as they have unveiled their own card reader. Called Amazon Local Register, the company is looking undercut the competition.
Amazon is undercutting Square and PayPal when it comes to pricing. It's offering 1.75 percent on transactions from now through all of 2015 for those who sign up by Halloween. After that, there will be an increase to 2.5 percent on transactions which is still lower than what Square (2.75 percent) and PayPay (2.7 percent) charge. Money collected is automatically deposited into bank accounts the next day. However there is just one issue that Amazon will need to get past.
That issue? Compatibility. Currently, the reader works with the newest of iPads and the iPhone 4 on but it seems that the only Android devices that are compatible are the three newest Galaxy S smartphones (3,4,5) and both the Amazon Fire HD and HDX. The Fire Phone doesn't eve make the cut.
Early reviews are saying that in order to take advantage of the Local Reader you'll need to sign up for a new Amazon account as you won't be able to use your current account. Currently the reader has two stars on Amazon.com.
For those that are still interested, the device will cost you $10 but that will be credited back to you with the first $10 in your processing fees. While it's currently a work in progess, the extra percentages in savings over Square or PayPal over time, may make using this worth it.
source: Amazon
