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If Square is an aggregator, it may have difficulty working around the card brands’ merchant-account rules, suggests Todd Ablowitz, president of Double Diamond Group, a Centennial, Colo.-based consulting firm. “It’s a lot harder than it looks,” Ablowitz says.

Square also likely is telling its investors that the start-up is going after merchant segments that are not accepting payment cards already, Ablowitz suspects. “A merchant is not going to switch to a mini-jack powered device from a point-of-sale terminal,” he says.

ISO & Agent Weekly, December 9, 2009