First of all, you're actually paying 11.11% commission. But in all likelihood you're not actually paying anything.
Let's say you actually sent somebody $5000... and if they just ran away with it you would reverse the payment. Even if they bought you the 4500 in BTC and sent it to you, what's stopping you from reversing the payment anyway?
And if that's not the case why would you trust a stranger with an irreversible payment?
Let alone the fact that
you can buy bitcoin within the Square app, nothing about this deal makes sense.
regardless of how true that sounds. I figured bitcoin ATM would just charge more than that.
Depends on where you go. I found one that was buying LTC for slightly less than 4% the other day. 8-10% is pretty standard. So a 10% (or 11%) commission is actually more money for a much stronger chance of getting ripped off.