by Alison Storm | 10/26/10

You've probably heard of Twitter, and maybe even recognize the name of the founder Jack Dorsey. But you probably don't know what he's been up to lately. After revolutionizing the way we communicate online he's now hoping to bring big changes to the credit card industry.

According to CBS Dorsey's new company is releasing a product called "Square." It's basically a square-shaped mini-credit card reader that can easily attach to any smart phone. The produce would allow merchants to easily accept credit cards. "It just fits in to the audio jack of your mobile phone," Dorsey told Harry Smith on the Early Show, "and it works on your iPad, your iPod, your Android phone, and you plug it into the top, you load the software, and you can put in an amount, and then you can just take a credit card, swipe it. It goes up to see if there's (money available on the) card, and then it asks to sign with your finger. So you simply sign with your finger on the screen. We think it's going to be used by a lot of babysitters, dog walkers, hairdressers, flight instructors, piano teachers -- anyone you can imagine paying with a credit card who you can't today. This makes it very, very easy to accept cards."

Users will have to pay 2.75 percent of the transaction cost plus a 15-cent fee according to CNN. They say Dorsey believes this is comparable to what retail stores currently pay to accept credit cards. "No one carries cash any more," Dorsey told CNN.  "Everyone carries a little plastic card and nobody carries their checkbook. So being able to accept credit cards means more money, more volume." So far the app can be used on the Droid, Droid X. HTC Evo, Samsung Galaxy S, iPhone, iPad, and iPod Touch.