Thursday, September 20, 2012
On Sept. 19, 2012, online daily-deal marketer Groupon Inc. launched a payment service it guarantees is "the lowest cost option" for its merchants to accept credit cards. The new software solution, Groupon Payments, is built into the latest version of the Groupon Merchants app. The app works with Apple Inc. mobile devices.
The Palo Alto, Calif.-based company stated its lowest rate guarantee is only available to Groupon's U.S. merchants, and these retailers "must provide proof of their current third-party rates for identical service" for the guarantee to apply. Groupon also said that, under the terms of the Groupon Payments Merchant User Agreement, it may "modify or discontinue the guarantee" or other Groupon Payments services "at any time."
The solution, which includes a card reader for high transaction volume or an audio jack accessory, is available for any U.S. merchant running a deal with Groupon. Groupon Payments' interchange rates for Visa Inc., MasterCard Worldwide and Discover Financial Services card-present transactions are 1.8 percent plus 15 cents per transaction; the American Express Co. fee for a card-present transaction is 3 percent plus 15 cents per transaction, Groupon noted.
The company's payment service is also available as a pilot program to merchants who do not employ Groupon offers. The cost is 2.2 percent for Visa and MasterCard-branded (3 percent for AmEx-branded) transactions, plus 15 cents per transaction.
The company employs encryption to secure credit card information and is backing the app with a support team. Features of the service include bill totals, tips, tax calculation, refund processing, emailed customer receipts, live transaction history, daily sales reports, deposit tracking and revenue trend analysis.
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