Amazon has launched Local Register, a new payment system that functions in almost the same way as Square and PayPal Here. All three systems work by providing mobile applications and a card reader to users. In the case of Local Register, users can access the payment app for free and then receive as $10 card reader capable of accepting all major credit cards.
For each transaction Amazon will place its own 1.75 percent fee onto the total amount, regardless of a card being debit or credit. That rate is much lower than Square’s which sits at 2.75 percent, though users must sign up before January 1 in order to skirt around Amazon’s normal rate of 2.5 percent. For manually-entered transactions, the regular fee will be even higher at 2.75 percent. No matter when people sign up, however, Amazon’s rates are better than Square’s for practically the same service.
Transaction credit equal to $10 is also provided to users when they sign up which essentially gets rid of the $10 startup cost that goes along with getting the card reader. Since Amazon will be handling a business’ financial information, it can also keep track of key statistics such as when sales are highest during a set period of time. All of that information will be offered in the Local Register application for iOS and Android.