Square Inc. has announced the roll out of Square Cash, a new free email personal debit card to debit card money transfer product. As it works informally and simplistically by email, there’s no new accounts, passwords or logins and no new app to add. It works on any email-capable device such as a smartphone, tablet, or computer. Initially, Square Cash is designed to work on a person to person basis and is not intended for retail sales purchases of any kind. It requires either a Visa or MasterCard debit card from any U.S. bank. To utilize the service you compose an email to the party you wish to send money to, you cc: email@example.com, and in the subject field you enter the amount you’re sending. You can either leave the message body blank or describe the payment. Then press Send. International transfers are not presently supported.
There are obvious questions regarding security, liability, dollar limits, and why or what Square gets for these “free” transfers. Starting out, transfers are limited to $250 a week without providing more information to Square. There is a one time requirement by Square to enter your debit card information which they use to verify the legitimacy of your card and check your balance (ala normal card processing protocol) before acting on the email. Funds are expected to be deposited in one to two business days. Because there is no account per se, there is no transfer record or reconcilement feature available. You would only have your email trail to verify any transfers. An interesting concept from some creative thinkers. Let’s see where it leads.