Square is a new way to accept credit cards with a mobile device. Keeping it really simple, following Paypal, they only take out a percentage per sale. No monthly fees or extra costs. It’s pretty amazing.

Does it really work? What are the catches? As an experiment, I’ll be trying out Square for my business over the next few month for credit card transactions. I do appreciate my current merchant account, but if I use Square, I could save over $180/year in monthly fees and extra fees. Sounds like a deal I can’t beat.

In the meantime, I interviewed a few Portland, Oregon

businesses on why they have chosen Square and how’s it’s helping their business.

Dane Ault with Monkey Minion Press mentioned that
“We’d been wanting to add credit card processing to our convention appearances for a while before Square came out, but due to the costs associated (monthly fees, processing costs, etc) and the arcane mumbo-jumbo that most of the credit processing companies we looked at wanted, it was just unfeasible, no matter how much it might grow our bottom line. We looked into the credit procesing services offered by Costco, and a few others things that had iphone apps and those cell phones with the card swipers built into the sides.”

Dane noticed that their sales close to doubled once they could accept credit cards at their shows. Folks didn’t mind forking over their credit card to pay for items. He’s pretty happy with how Square has met their needs. He said “The fact that the Square app can also double as basically a mobile Point-of-Sale system and cash register is just fantastic in helping us keep track of not just credit card sales but cash sales, too.”

Kim Malek at Salt and Straw explains why they chose Square:

“We researched many traditional options but found the industry to be quite confusing.  We appreciate the systems to track sales by category and check on sales remotely at any time…I can keep track of what’s going on and call the shop to do things like manage labor or get more inventory as needed. Plus, it’s paper free, which supports our mission of doing what we can to tread lightly in the planet.”

Kim also mentioned some surprises they didn’t expect such as seeing their customer enjoy paying on an Ipad.

“People live seeing the sleek design and innovative interface…like getting to sign with their finger and have their receipt texted or emailed to them. It’s the only POS that causes people to cheer out in delight and call their friends over to watch them pay!”

She noted some cons were the system doesn’t accommodate for tipping so there’s been a decline in tips and some confusion with customers on the whole tipping thing in general. She also mentioned that Square is working on resolving tipping with their system.

Marco Madian, a massage therapist, found the using Square gave him the flexibility to accept credit cards no matter where he is. He works out of 2-3 offices and wanted to be able to bill for chair massages and Square is making it possible!

Marco mentioned that the downsides he’s found are the tipping aspect as well. He stated

“It would be nice if people wanted to tip that it’s not a straight % that they could just add a $$ amount instead.  As a Service Industry (massage) people often tip but to add 10-15% is not normal, usually it’s like $5 – $10 or something similar.”

Dane, Kim and Marco are overall pretty excited about Square and it sounds like it’s helping to grow their businesses. In the part two of this report on Square, I explore how I’ve been using it and talk more how mobile devices are allowing businesses to use services like Square.

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I got a chance to talk with Meredith Miles, the lady behind Floating Owl Designs.  She’s a great storyteller and describes how her business originated and the success she’s had with Etsy. Meredith has been successful in finding a niche and a knack at promoting it.

My business name is Floating Owl Designs. I make anything creative but right now, name hangers are most popular, as well as name ornaments during the holidays. These consist of wire bent into names and inserted into wooded hangers or made into a holiday ornament with a jingle bell, great as personalized gifts.

The inspiration for starting this business came from being laid off a year ago this April from doing an accounting job, which paid but made me miserable. I happily got married last year, 3 months after losing my job and had all the time on my hands to plan out my wedding. Instead of spending hundreds or thousands of dollars on decorations someone else can make, my family, husband and I designed and made everything. That resulted in numerous compliments of our wedding having lots of personality, separating it from other weddings people had attended. I enjoyed the whole process even after the wedding ended, that I started to wonder if it was really possible to do these things full time, like a, “real job,” with “real money.” My sister and I had always pondered if it was possible to support yourself being creative for a living whether doing it from home in a spare room or being lucky enough to find a job that you can stretch your creative legs AND be an asset to a company.

I started looking into seminars, inspiring websites, talked to friends who had started their own companies on their own. All I kept hearing was, “It IS possible! Don’t “try” to do it, DO IT!” I started realizing you have to change the way you think, surround yourself with supportive influences, start moving, and keep moving. I made a calendar of the future and worked backwards, starting at December 31st, 2011. What will I be celebrating on New Years… Having my own business? My website up and running? Converting our spare room full of useless stuff into a home office? Hitting a target from the profits I made? Then I made a target of what had to be completed by September, 2011. Then also June, 2011, then March 2011. It all sounded fantastic but dreamlike. But with my mind numbing background working behind a desk, working for people who were crazier than my most craziest thoughts, and having a husband and sister telling me, “Go! You can do this, we’ll help you!”, it was time to stretch my creative legs on my own time.

It took less than a day to convert the spare room into an office, complete with large Ikea table to work at, shelves displaying my own creations for inspiration and a place for supplies. Well that was easy. Huh. The thought of, “will this really work?” started to become a memory instead of a reality.

To promote my business, I’m a part of Etsy, a handmade marketplace website. I had been intimidated to sign up and see what it was all about as a seller. I signed up, perfected my skills as a, “wire bending machine” and posted some ornaments at Christmas time, hoping my shop would be found from such hits as simple as, “ornaments.” Sure enough, I was found, and had an original, personalized idea people wanted to give their loved ones for the holidays. I depended on search terms to get the customers into my shop. Once in, I had to keep their attention with decent photos of my work and reasonable prices. It was quite a successful holiday season, all from including, “ornament” as part of my product name.

After the holidays, I had to think up a new product and had name/bridal hangers in the back of my mind. They seemed easy to make, I had the wire bending down and brides are one consumer willing to spend money. I did have to do some research on quality, wooden hangers, a drill, packaging, etc. I looked up the competition, how their quality compared to mine. I felt I had a fair chance, some of the wire handwriting was hard to read. And me being a perfectionist might pay off in a craft like this.

Again, all in the search times, particularly on Etsy, I was found through terms like, name hanger, wire hanger, bride or bridal hanger, mother of the bride hanger, etc. I posted some hangers, they sold out in hours. Inquiries poured in for custom made orders. I began a list of what, who, which type of wood for the hanger and when needed by. I had become an online crafter. I had no idea brides were crazy, Crazy, CRAZY over these name hangers. I had found a niche that has a huge demand.

One of my biggest challenges has been staying motivated that this will work, that I will be, “successful.” But I had to assess what successful meant to me. It came down to 2 things, doing something that made me happy, and, making money from what I created. The day I finally posted hangers I made to Etsy, I had a really good feeling, a feeling of, “I think this might actually work!”

And that feeling felt good. It felt different. And when I got payment confirmation emails from Paypal, it got exciting real fast. The more sold, the more I made. I got faster at bending the wire, perfected how to manipulate it into married names like Mrs. Schnittker. I have been lucky. I haven’t had to market my products very much, I’m found even off only a few listings on one site.

Some goals for this year are to get my website… floatingowldesigns.com up and running. I’d like to be able to change it up as often as I need, keep up with what sells, keep taking better pictures of my products. I would like to start the process of having a business, apply for a business license, be tax ready by end of this year, and see where this all takes me. I used to settle on jobs that paid the bills at the expense of my sanity. Doing something (accounting) for someone else (fire breathing bitchbag of a boss… my sisters term), resulted in growing health problems. I hated who I was becoming, I was miserable, coming home every day to my supportive, then boyfriend now husband, in a terrible, toxic mood. I let my day job run my life. Now, I have goals, I’m being creative every day and I’m making money. I have options, and I’m more creative in other aspects of my life. I love to cook again.

This all hasn’t been easy, some days I’m working over 12 hours, but it beats the 8 hour shifts behind a desk, processing invoices. I finally want to work and it’s my products I’m selling. I’m still not sure where I’m going with this, but I’m sure my quality of life has gone up, while finding I can make money creatively and be happy. Who knew.

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Paypal held a monopoly, back in the days when eBay was king,   allowing folks to do cash transations online no matter where you lived. People could buy a Mr. T lunch box from someone in Germany and send them a payment from Australia. Both parties had paypal accounts that held their bank and credit card info.

Sometimes that can be a hassle and turn-off customers. Sometimes you want to send invoices to your clients but not deal with a merchant account either. That’s where Google Checkout comes to the rescue, it’s set up to be able to take credit cards, but doesn’t require same set up that Paypal requests. Google Checkout can stand alone as a simple shopping cart or can be integrated into more sophisticated shopping carts like osCommerce. This is a list of all the 3rd party software it supports. To get a better idea of how this works, especially if you have a product bases business, here’s a walk-through.

If you are a service based  business,  you can use Google Checkout to help with invoicing. I find that it makes my customer’s lives easier, I send them an invoice, they get it in their email and with the click of a button, they can pay their invoice.  It’s very simple and straightforward.

How have your experiences with Paypal and/or Google Checkout been? Do you prefer one over the other?

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