Update 7/29/15: Groupon Payments has been rebranded as Breadcrumb. Please see our Breadcrumb review for more information about this product.
Groupon Payments (grouponworks.com/merchant-solutions/payments) is a new service launched by the popular daily deal website, Groupon.com, which enables merchants to accept credit card payments via their smartphones. Like its predecessors, such as Square and GoPayment, Groupon Payments includes a free app and audio jack card reader, and doesn’t appear to have any other monthly fees or time commitments. Additionally, the company claims that it will beat any competitors’ fees if they offer the exact same service.
Groupon provides very little detail about the Terms & Conditions of Groupon Payments or its complete pricing schedule via its website. Some might even say that the rates quoted on the site are slightly deceptive. Groupon promotes a swipe rate of 1.8% plus $0.15 per transaction for VISA, MasterCard and Discover (2.3% + $0.15 for keyed sales) and 3% plus $0.15 for swiped AMEX transactions ( keyed: 3.25% + $0.15). According to other sources, these low rates are reserved only for merchants who run “Daily Deals” with Groupon. Otherwise, the swipe increases to 2.2% plus 15 cents per transaction for VISA, MasterCard and Discover. It is unclear as of this review how much the keyed and AMEX rate increases because Groupon does not publish this information, instead requiring merchants to enroll or call a customer service line.
It is too early to rate how well the service is performing with merchants, or if there are any common complaints. However, Groupon is providing a dedicated support team reachable by both phone and email seven days a week, which may be advantage over competitors like Square. The company, itself, currently holds an “A” rating with the Better Business Bureau (BBB) and has been accredited since 2009. As of this review, the report states that 498 complaints have been filed within the last 36 months and that all but 62 have been resolved to the customer’s satisfaction. It should be noted that complaints against the company could be from merchants as well as consumers. Numerous complaint also exist outside of the BBB, most of which appear to be consumers reporting problems with merchants who ran a Groupon Daily Deal.