Square’s iPhone Credit Card Reader To Cost $1

I think you already know about Square and all this buzz around iPhone credit card readers. Square recently produced a introductory video to familiarize people with the service. Square’s forthcoming mobile credit card transaction system will be available this summer for the low price of $1.

You won’t need a special merchant bank account, because Square will work with any bank account and the only charge to use the service is $1 for an iPhone app and the credit card accessory. However, for every transaction you will make using Square, they will bank 2.9% of the transaction, so that explains the low price.As a user, you can also pick your favorite charity and Square will donate 1 penny to it, from their cut of each transaction.

So, to be a Square user you will have to pay $1 upfront for the iPhone app and dongle and each time you will make a transaction, Square will take 2.9% of that transaction and donate 1 penny to your favorite charity.

Square is not the only ones that are penetrating the marketing with a service like this. Mophie, a popular retailer of iPhone and iPod accessories is also planning to bring a credit card reader to their line of iPhone cases. But this means you will have to get a case that can cost $10 for a standard one, or around $100 for one that includes a secondary battery.

Another big player in the space this year will be VeriFone. The company has their only mobile credit card processing system called PAYware Mobile and it’s also one part hardware, one part software application.The first iteration of PAYware Mobile is for iPhone and iPod Touch (with versions being developed for Windows Mobile, BlackBerry and Android)