Freshbooks Launches Mobile POS Card Reader

Freshbooks, a Toronto-based accounting technology firm, announced it is entering the mPOS market.

The company plans to offer a credit card dongle that can be used by merchants and businesses for offsite transactions.

The brand’s new product is very similar to Square’s reader, and will likely be its biggest competition in the space.

“Since day one, FreshBooks has been committed to helping service-based small business owners save time, get paid faster, and look professional, and the FreshBooks Card Reader is the next step as we continue delivering on our promise,” clarified Mike McDerment, CEO of FreshBooks.

To use the new dongle, individuals must attach the piece on a compatible smartphone through the 3.5mm audio jack. Service charges for transactions made on the reader are slightly higher compared to Square. The company takes in 2.7 percent and $0.30 for each Visa and MasterCard transaction, while American Express (AMEX) will cost 3.4 percent and $0.30.

Furthermore, merchants are required to cover the price for the actual device, which costs $29. To cater to a broad range of transaction methods, the scanner is capable of reading both magnetic-stripe and EMV cards.

The system can be integrated with the company’s cloud accounting software for seamless tracking. Payments made on the piece have the potential to be synced with customer invoices and reports. The software and hardware combo provides merchants with a complete and scalable solution to expense management.

“Seventy five percent of small businesses already use mobile devices to run their businesses, and the FreshBooks Card Reader will offer them with yet another way to streamline their workflow while on-the-go,” said McDerment.

The official launch for the mPOS reader is scheduled for 2016, but business owners can test the service by requesting for an invite on the brand’s website.