[RetailEdge Moderator]

No. Why would we? The Square rates are not great. We are in the business of providing value to the retail point of sale market. On the face of it the Square solution looks like a great deal. 2.75% per swipe and a free swiper? It looked so attractive to us we even went back to analyze our rates.

After our analysis here is what we found:

1. 2.75% sounds good. However if you need to key in the credit card number and can't use the swipe device then your rate goes up to 3.5% + 15¢. Ouch.

2. Our rate was even better than 2.75% using some one of our partners (PPI). And we key in our values because we are taking most of our orders over the phone.

3. The rate structure of the square is easy to understand. You have two different levels 2.75% and 3.5%. Easy. And the Square users we have talked to are really happy with the rates that Square provides. One square user was so happy because he had been paying over 3% for his credit card rates and so the Square was a deal compared to that. However, as we found out easy is not necessarily the best. It did take us a long time to analyze our actual effective rates. There are many different card types and rates associated with them. Our partners' (and our) rates were significantly better but not as easy to figure out. And retailers have been paying too much for too long for credit card processing.

4. If you want to process credit cards on an iPhone or iPad, both of our partners Payment Processing Inc and Mercury Payment Systems have a free iPhone/iPad application you can use that will allow you to process sales through your iPhone or iPad. The device that attaches to the iPhone is not free like the Square device. But the square device is pretty flimsy and is not really designed to last in a normal retail environment.

5. With RetailEdge Island you use the program on a laptop device with a full copy of the program that will adjust your inventory, track customers and sales back at the store. And although a laptop is not as small or mobile as an iPhone, you do get much more functionality out of the RetailEdge Island than you do from just taking the customer's money (which is important as well).