Does this save money for Starbucks over their own branded card? Due to the rewards available, I'd assume many of their highest volume customers are using it, and would be unlikely to switch to Square unless those rewards were transferable.
Jack Dorsey: Today Starbucks Signed up for Square
121–130 of 199 posts
Re: Jack Dorsey: Today Starbucks Signed up for Square
#122Earlier quoted context omitted.
"Square will process Starbucks U.S. credit and debit card transactions": Wikipedia says that Starbucks has $11.7 billion in revenue every year. I would assume that a majority of that revenue is through a card. I am not familiar with Square's revenue but I feel that this will at least double their transactions. Am I correct?
Will have an impact also in terms of economies of scale. Their transaction fees _should_ go down as they process a larger number of transactions. Makes the partnership much more strategic, and it makes sense why Starbucks also invested - might have been part of the package.
I'm having a hard time seeing how Starbucks has higher processing costs than Square. I think that Starbucks will continue to pay their low costs and be able to use Square as their platform. No reason Square couldn't process Starbucks transactions, too without needing to change their merchant accounts.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#123Earlier quoted context omitted.
My wife actually thinks it is rude to pay with cash or check when people are waiting behind you in line. Cards are the fastest way to pay, you don't even have to sign for purchases under a certain amount.
You don't enter a PIN? That process easily makes it take longer than cash.
What? Perhaps if you have down syndrome, but otherwise takes around 5 seconds. Swipe card, enter 4 digit pin, press enter. Faster than it would take the cashier to type in the amount you just gave him, much less make change.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#124Earlier quoted context omitted.
"Square will process Starbucks U.S. credit and debit card transactions": Wikipedia says that Starbucks has $11.7 billion in revenue every year. I would assume that a majority of that revenue is through a card. I am not familiar with Square's revenue but I feel that this will at least double their transactions. Am I correct?
Here in Europe (Germany) i have never seen anyone buying a coffee with a credit card. Maybe debit card, but that also is rare, its mostly cash for these small transactions. Most coffee shops dont even take any cards at all, even here in germany!
Switzerland... Usually cash. Sometimes Debit Card / Maestro (for larger purchases or if you don't have money on hand). People usually withdraw money from the ATM to pay for their purchases.
The idea probably is: It's easier and simpler to withdraw 200 bucks once and pay in cash at the different stores instead of having to enter the card and PIN every time you purchase something.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#125Earlier quoted context omitted.
I'm living in Germany for the summer and am surprised at how little people use cards here compared to the in the states. I love being able to use a debit/credit card so that everything I buy is logged. That means I can see everything (automatically tagged) using Mint. It also decreases the hassel of carrying as much cash around and going to the ATM as often. On a tangent, it seems like people here have more of a nega…
Here in France, people use debit/credit cards to buy EVERYTHING. Some merchants discourage this by insisting on a 15 euro minimum charge. But by and large cards are used more often than cash. In restaurants it is common to split the payment of the meal and have each person contribute via a card. It's been that way for years, although the frequency of card use is not as overwhelming as in the US. At the supermarket, i…
Hmmm... I have been to France probably over ten times, I've never noticed this.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#126Earlier quoted context omitted.
My wife actually thinks it is rude to pay with cash or check when people are waiting behind you in line. Cards are the fastest way to pay, you don't even have to sign for purchases under a certain amount.
You don't enter a PIN? That process easily makes it take longer than cash.
No PINs for credit cards in the US.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#127Earlier quoted context omitted.
"I would assume that a majority of that revenue is through a card." Really? I almost never use a card for café type purchases. Maybe if I were buying a meal, but for a coffee or two I'm 99% likely to use cash. (Note: mine is an Australia-centric view, perhaps things really are very different in the USA?)
To add to this, often cafes enforce a minimum transaction size, such as $10, to use card. This means usually you only use card it you are grabbing lunch as well.
I've read before[0] that it is actually a violation of a stores terms with Visa to enforce minimum transaction sizes. Those stores could potentially be reported to Visa and have sanctions placed on them (like an increased transaction rate). Interestingly, a merchant is allowed to offer a discount to people who pay by cash but they can't charge more for people paying by credit card.
[0] - http://www.msnbc.msn.com/id/11697094/ns/business-consumer_ne...
Re: Jack Dorsey: Today Starbucks Signed up for Square
#128Earlier quoted context omitted.
Question: Yesterday I saw you in Starbucks and heard you say "put it on John's tab". Today I see you are 2 behind me in the queue. What stops me from strolling up to the counter, big grin and saying... Put it on John's tab please? Wouldn't the proximity of your phone mean they would take the payment from you even though you haven't authorized it?
I'm pretty sure that a picture of the customer appears on the cashier's iPad app/register.
Yep, you can't enable the tab feature without first taking a photo of yourself with the app.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#129Earlier quoted context omitted.
To add to this, often cafes enforce a minimum transaction size, such as $10, to use card. This means usually you only use card it you are grabbing lunch as well.
I've read before[0] that it is actually a violation of a stores terms with Visa to enforce minimum transaction sizes. Those stores could potentially be reported to Visa and have sanctions placed on them (like an increased transaction rate). Interestingly, a merchant is allowed to offer a discount to people who pay by cash but they can't charge more for people paying by credit card. [0] - http://www.msnbc.msn.com/id/1…
After the credit card reform act went through in 2010, the card companies now allow for a $10 minimum.
http://consumerist.com/2010/09/amex-visa-mastercard-all-give...
Re: Jack Dorsey: Today Starbucks Signed up for Square
#130Earlier quoted context omitted.
Question: Yesterday I saw you in Starbucks and heard you say "put it on John's tab". Today I see you are 2 behind me in the queue. What stops me from strolling up to the counter, big grin and saying... Put it on John's tab please? Wouldn't the proximity of your phone mean they would take the payment from you even though you haven't authorized it?
I'm pretty sure that a picture of the customer appears on the cashier's iPad app/register.
In that case, the cashier can easily charge you without your consent. Of course, you get the confirmation mail and can cancel the transaction but this is inconvenient.
Making payments too easy makes it easier on the bad guys as well.