Mobile Credit Card Readers increase sales

With the proliferation of 'smart' phones that can access the internet anywhere, developers are creating applications for mobile credit card readers that give small business owners a way to expand payment options for their customers.
In the past, if a business wanted to accept credit cards, they had to establish a merchant account with a bank. This is a costly service for a small business owner who does not do a huge volume of transactions. If you've ever seen a sign at the cash register indicating a minimum purchase requirement for credit card payment, this is why. A business pays a fee to the bank to process the transaction in the form of a percentage of the total transaction and a fee per swipe in addition to a monthly guaranteed minimum that is paid regardless of your volume (or lack) of sales. The actual percentage and swipe rate varies based on volume. The higher your volume, the lower your fee. The small local business owner is usually paying a higher fee than a big chain store and the cost of running your credit card cuts into his profits.
When you think about the types of businesses that accept credit cards, you would naturally think of brick-and-mortar locations - actual storefronts - but you probably wouldn't think of going to a garage sale or a flea market and paying with a credit card. Those are typically cash-only transactions for a variety of reasons, primarily because the seller isn't a registered business. Home-based crafters who sell at small fairs and markets have similar issues. Imagine you are at a craft fair and find the perfect gift, only to discover that the seller accepts only cash and you don't have enough. When you walk away from that transaction, both you and the seller are disappointed. This is the gap that is being served by mobile credit card readers. There is a direct correlation between accepting credit cards and increased sales. The seller accepting cash only will find he is losing sales to the merchant at the next booth who has one of these readers.
There are a number of widgets in this genre - Square, PayAnywhere, GoPayment, PaypalHere to name a few. These devices connect to a smart phone and enable a seller to accept credit cards anywhere they have a cellphone or wi-fi signal. The initial investment is small - most of these sell for about $10 and offer a $10 credit after the first transaction - and there is no contract required. While the specifics of each application vary slightly, all of them offer the capability of calculating sales tax and emailing a receipt to the buyer. I've seen these in use at the admission gate at festivals that charge an entry fee and at outdoor fairs where sellers don't have electricity or a phone line for a typical sales register. As a consumer who pays for nearly everything with a debit card and rarely carries cash, I love that these devices are becoming more popular.