Square Inc. now lets its merchants get feedback from customers through a response window added to its digital receipts. Appropriately, the new service is called Square Feedback.

Square Feedback makes its debut only four months after Square CEO Jack Dorsey spoke of the potential for merchant interaction through digital receipts when delivering the keynote speech at the National Retail Federation conference in January.

The new service comes at a $10 monthly fee to the merchant. When consumers respond to a question presented on a digital receipt, the answer goes directly to the merchant and is visible on the Square Dashboard from any location in real time.

"There's no app involved on either side — the merchant simply turns on Square Feedback in their dashboard, and any buyer can see the feedback module in their emailed receipt," says Square spokesperson KC Simon.

Because negative shopping experiences can quickly spin out of control through social media outlets, Square views the feedback service as a way for merchants to respond quickly, Simon says.

"Square Feedback is a powerful way for sellers to keep their customers happy and protect their online reputation," Simon says.

Currently, all comments between the customer and merchant through Square Feedback are private messages, Simon says. But merchants can resolve issues one-on-one through the service.

Square introduced Feedback shortly after launching an order-ahead service called Pickup, which merchants can use for an 8% fee.

Square is probably looking for additional revenue-generating opportunities, and Square Feedback has value for merchants, says Maria Arminio, president of Avenue B Consulting Inc., a Redondo Beach, Calif.-based payments management consulting firm.

"Merchants can use this service to address issues but also develop strategies for new products or customer service enhancements," Arminio says.

A day before announcing Square Feedback, the company delisted its Square Wallet app to make room for Square Order, a new consumer-facing app being tested in New York and San Francisco for pickup orders.

"Processing organizations grow and expand by getting the front-end piece, the delivery, down pat and then they focus on all of the back-office support capabilities," Arminio says. "If they can get that right, it really does provide an enhanced overall processing capability for that merchant, and there is huge value for that."

The flurry of new services from Square come less than two months after the company denied a Wall Street Journal report that it was seeking a buyer. The report indicated Square was in serious discussions with Google about a possible acquisition. 

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