Amazon launches its own credit card reader, undercuts Square on transaction fees

Gigaom

Amazon(s amzn) on Wednesday unveiled Local Register, its take on the mobile credit card reader that lets small merchants take payments from their smartphones and tablets. The reader works with Amazon’s Fire HD and HDX tablets, as well as on iOS devices and a limited number of Samsung Android(s goog) smartphones, but surprisingly it isn’t compatible with the new Fire Phone – at least, not yet.

Dozens of companies have challenged Square in the mobile point-of-sale space, but none so far have had Amazon’s brand recognition. What’s more, Amazon appears to be going for Square’s jugular in pricing. Its standard fee on any card swipe is 2.5 percent of the transaction amount, while Square charges 2.75 percent.

Amazon Local Register tablet

What’s more, Amazon is offering a promotion to retailers that sign up for Local Register before October 31: It’s dropping its transaction fee to 1.75 percent until January 1, 2016. That…

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