Groupon Introduces Credit Card Payment Service

September 19, 2012, Written By Natalie Rutledge

Today, Groupon launched a payment service that enables merchants to accept credit card payments using a card reader attached to an iPhone or iPodTouch.

By entering this market, Groupon Payments will take on the two leaders, PayPal and Square. Groupon apparently wants to compete on price.

Groupon, the largest deal company, is charging Discover, Visa and MasterCard 1.8 percent of the transaction price plus 15 cents per transaction. American Express will be 3 percent plus 15 cents per transaction. By comparison, Square charges 2.75 percent per swipe while PayPal charges 2.7 percent.

Groupon will initially target businesses that offer deals through the company. Other merchants may be able to use the service but at a higher rate.



The information contained within this article was accurate as of September 19, 2012. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at [email protected]
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