Last week we saw part two in a series on handling the money you make with a hot dog cart, in which we covered hot dog cart cash registers.
Today I’m going to show you how I accept credit cards at my hot dog cart.
I use a nifty little gadget called the Square. It was brought to my attention by the infamous Jay Leitch – thanks man!
Square is awesome because there are no application fees, no set up fees, and the sign up process is unbelievably simple.
They charge less than three percent per transaction which is pretty reasonable, especially when you consider how few people carry cash nowadays. Having the ability to accept credit and debit cards will boost your sales significantly.
I don’t mind paying 2.7% to get a sale I would have otherwise missed. It’s a no-brainer.
I just got a new location at an antique mall and Saturday was the first time I was able to accept credit and debit cards. It was very cool and my customers were impressed.
I made this video on the way back that shows Square in action.
Go sign up at www.squareup.com
What do you think? Let’s talk about it in the comments.
-Steve
{ 62 comments… read them below or add one }
That is a thing of beauty
Awesome product! You never fail to amaze me with the stuff you deliver. Thanks again. I just signed up and downloaded the app. FREE card reader should arrive in the mail in 2-5 days. WOW… might be accepting CC this weekend!
Looks like a terriffic thing to do Steve…..perhaps
sone kind of minimum sale amount would be in order???
Yes it is Brian.
Thanks for the kind words Rock City, you’re going to dig it!
Larry, I don’t require minimum orders. That ticks people off. Happy customers tell a few people. Unhappy ones tell a hundred.
I use Square also and like you say Steve it’s a no brainer, and so easy to use, keeping the money seperate is easy just set up a simple business checking account with your bank and have square send it to that account, they will even email you when they send it to you so you know its coming. It is a real game changer for small business’ to our benefit.
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That was the coolest thing ever. I have been doing some research about getting into the hot dog business and this is definitely going to be among the things I get when I start up my business. Great video!
The Square is great. I have been using it for a couple of months now. Recently at an event , I had $150.00 in transactions. That cost me $4.13 to gain an additional $145.87 in business. That math works for me. Some people get thier friends to buy just so they can see how the technology works!
Right on Chase. If I can answer any questions for you give me a call at 636 399-2460. I’d be happy to talk with you.
-Steve
The math definitely works for me too Morgan!
Intuit (Quickbooks) recently came out with a similar piece of equipment, with a similar pay plan.
Thanks Steve! We were at a concert recently and my nephew wanted a hot at a cart, but couldn’t buy one cause he didn’t have cash! My husband was wondering if there was a device we could use for our business!
Intuit offers a similar solution called Intuit Go Payment and works pretty much the same. Works with iPhone, iPad, Blackberry, and Android just like the square. Fee is 2.7% per transaction.
“Happy customers tell a few people. Unhappy ones tell a hundred”
AMEN!!!!!
I just bought a new phone, htc wildfire. and I read this today, and what a great way to take c.c. I can use this for my main job. this also beats taking a check from someone and wondering if it will be cashed at the bank THANKS
I’m just starting up a new hot dog stand and this is what I will be doing for my retierment! Love your site. This Square thing sounds like a great idea! Could you send me some info on how to get one! ( American Hot Bunz )
If this sounds like a no brainer, I’m afraid of the comments I’ll get when I tell you I don’t think it’s such a great idea.
We have a Hot Dog Joint. I would estimate that 20% of our customers ask if we take credit cards. When we say we only accept cash, about 95+% reach into their pockets or go to the car to get the cash. Of the remaining 4 or 5% most travel down the road to the bank ATM and come back. In the past year I would guess that less than 4 or 5 customers left and never returned.
I have to agree totally with the statement that I’d give up 2.7% for a sale I otherwise wouldn’t make, but I think there is more to it.
I use one of the other companies, Pay Anywhere it is pretty much the same thing I love it. Everything is free except processing charge too.
we have had it since march and it is great easy and it gives me extra sales at events when other vendors that dont loose out on the sale I pass the charge on to the customer they dont ever mind
@Yanks Franks… I think there is a big difference in adding convenience for customers from a cart as opposed to a brick and mortar operation. You have a lot of built in’s and givens that come with a brick and mortar operation that allow you to be selective. I need to do whatever I can (within reason) to make customers come back again and again. Offering them the convenience to pay by card is just one of those things.
Yanks Franks – I see your point and I’m glad it works that way for you but I have to agree with Rick. I’m not going to risk losing a $20 sale to save 47 cents. I feel that I absolutely MUST offer my customers the option to use plastic.
-Steve
P.S. I do appreciate your input Yanks!
This is a great alternative. You can also get something very similar from Intuit. You can go to the Intuit website for more info. It too is on a small percentage up to 1000 per mo in sales. Check it out!
I saw this the other day by chance on the side of someone’s cart that made the condiment speed rail I believe. I haven’t opened for business yet but I will definitely take plastic when I do. Also, I don’t understand the idea behind a minimum purchase requirement in this case. There isn’t a per transaction fee like some others, it’s 2.7% no matter what. So who cares if you make ten $1.00 sales or one $10.00 sale? Also, something I saw one a blog about square, was that you could only do $1,000 in transactions per week with this, but could ask for that limit to be raised. Has anyone run into an issue with this? Thanks Steve for another great video!
Do you connect the credit card transaction to your bank account with the cell phone app or by the bank account? Really inexpensive way to do it and if no contract is involved that really is great.
I am going to check into it at my Verizon store
tomorrow.How safe is it to our customers?I told my wife before I got your email we needed to check into offering credit/debit cards payments.
I KNOW we are still in the dark ages we still like CASH….but I am willing to change if it increases
PROFITS….. Big D’s Dawgs
MONEY WHAT HAPPENED TO IT..how can you walk out the door with out enough coinage to buy a simple hot dog? Now I have had a few instances…asked them “You gonna be this way tomorrow or the next day? cool, pay me then”, they’ve ALWAYS came back, paid, left a nice tip,bought more, brought a friend or 2 and are totally amazed that there is still trust in this world…
Yep, gotta look into this electronic thing. My wife got me a Blackberry about 4 months ago and it took me several weeks to figure out how to call someone. The only website I go to is this one via e-mail (e means electronic?) A friend told me to think of it as a computer with a phone; I dug it back out of the garbage when I found out how much the thing (Blackberry) cost. Anyway, this is the first useful thing that this device can be used for. Golly these buttons are so small!!!!!! Mr. Tiki
LOL!!!
I have an older wireless card reader and I add .50 to a sale under $5. No one really minds and I keep the sale. When I was cash only, I offered to buy them a bottle of water if they went to an ATM and came back (there was one close). Gave away a .09 bottle of water to make $1.97 on a hot dog, it’s a winner for both.
I read and then watched your presentation and agree with you 100%. so I immediately down loaded the app and am all set to start do cc’s when my reader arrtives.
Thanks for the info
Big Dog House – Come Get Ya One……
Thanks Rick and Steve. It’s good to have choices.
Great job on the videos, Steve.
I use the squareup app. We were recently at our first big event for three days. We were the only vender taking credit cards, so other venders were sending cusotmers to me. It also pays to make freinds at these events. When the competition sends someone to you and you can recommend them to others, everyone is a winner.
Angie
Steve,
This has got to be such a cool thing to use. I know that I DON’T carry money on me and it frustrates me to have to pass up a good old hot dog. I love your new ideas and the help you give others. Keep up the good work.
Oh yeah, I’m passing it on to people that I know don’t take credit cards.
I signed up way back in March and NEVER got my free reader. You can go to the apple store and purchase one for $10 if you don’t receive yours from SquareUp.com. It will work with your IPhone or your Droid/Android phone.
Also, if you purchase a reader on the Apple store. Wait until your reader arrives before signing up. They will then issue you a $10 credit when you sing up for the device.
Thanks for the Apple info Mike. My free reader came right away, but if you get stuck the Apple Store option is a good second.
R. Matthews – Thanks for the kind words brother!
Angie and Jon – congrats on your success. I knew you two would do great!
Big Dog – you’ll love it as much as I do.
Ernesto – yes, you link your bank account through the Square app and it shoots the money into your account. Easy-peasy!
Howlin’ Hank – I like your trusting attitude and I’m sure it goes a long toward building loyal customers. Good job!
Donny – it’s safer than giving your credit card to a waitress and watching them walk off into the back room with it. Square does a very secure encrypted transaction.
Good point about the no minimum on a strict percentage. Wish I had said that!
Rudykazoo, Scotty, and Rick – right on fellas!
Wait a minute – this sounds great, however I don’t have an IPhone or Droid. Why, the data transmission costs can break you! When factoring the cost of sale, you need to compute what it costs you in data charges to truly reflect your costs. 2.7% sounds fine, but then add in the data transmissions cost and the price grows.
That is about as cool as it gets! And with no up front fees. Whats not to love?
Mark, I belive the data usage per transaction is under 1K. Almost negligible. Someone tell me if I’m wrong about that.
Steve,
That’s the best idea I’ve seen since sliced hot dog buns!
That is a great tool, I will be putting my order in.
I was also eyeing those side tables on your cart are you going to show us the how too on that idea?
I’ve been using it for about a year now it works great and so many customers return knowing that you take plastic, I’ve had lots of people that can’t belive it when I show them my phone to sign, But the best thing is the Camera option for the receipt I take there picture with them holding the hotdog, They love it and it really works. People it’s so easy and once you’ve been with Sqaure alittle while the money seems to appear in your account faster. try it what do you have to lose. SOOOOOO easy.
Steve- I’m all signed up with square….I’m doing 2 swap meets this weekend one on sat and another on sun. Can’t wait to try out the square. Mark is right about data charges…im upgrading my phone to do this and it is an additional $30 a month, HOWEVER it is therefore a legitimate business expense and your phone and all charges are a deduction……….not to mention the increase in your sales!
I’ll keep you posted how I do with it!
I’ve been using square for about 6 months now works great
I was wondering what the various credit card companies charge? I have only been able to find that ther is a flat rate per transaction. Any info??
Nice idea, but in reality how much does it slow down your production?
We started using the Square this year after taking knuckle buster charge slips last year. The convenience of the Square is far superior and this year during our busy month of October we were racking up $800.00 a day in credit card sales. We don”t sell dogs yet (am looking into it as a supplement to our Kettle Korn and shaved ice business), but if you don’t take cards you are missing out on the new generation of customers that only use cards for everything. Also, what most don’t understand is the average customer will purchase more items when using a card. We sell several bags of kettle korn and/or larger bags to those using credit cards. Accepting cards should be added to the top 10 things for a successfull business and now anyone can do it for a very small cost. There is no excuse not to offer acceptance of credit cards.
The transaction takes 5-10 seconds.
Square is great. In fact they will send you an extra card reader in case you have a helper with their own phone or tablet. One tip is to keep your volume control turned up on your phone for totally flawless trasactions. It doesn’t read as well with the volume low.
Guess I’ll start using my last name as I see more Marks popping up. I am the Mark from Oregon….
I to noticed the “sideboards” and the tie downs.
Would be nice to see how you did all those.
Sounds like some great possibilities as I progress.
Thanks for your continual helpful advaise and updates!
works great, nobody has cash on them anymore