Groupon is launching a new payments service apparently targeting small-to-medium-sized business merchants allowing them to accept credit/debit cards as forms of payment. This swiper system, called GrouponPayments, boasts a 1.8% rate on all swiped transactions for Discover, MasterCard, and Visa transactions, as well as a 3% rate on American Express purchases. With its highly competitive rates, heightened security, and other features, Groupon has become an unlikely player on the merchant accounts stage. Here’s a brief article on merchant account providers.
The hardware for this system is solid and well-developed. There are two options for card-swiping hardware; a standalone swiping unit and an audio-jack plug-in accessory. The standalone option is rugged and durable for high-volume card-swipe transactions, while the plug-in device is more suitable for ultraportable, road-warrior needs with a lower volume of swipes, although it, too, appears to be of a fairly rugged design. Both card reader units utilize highly advanced, best-in-class encryption methods, keeping customers’ information safe and secure.