Square Offers Flat-Fee Processing Option
Aug. 23, 2012
Shortly after mobile payments startup Square made news by pairing with Starbucks to process payments for the coffee giant, the San Francisco-based company recently unveiled a new pricing structure. The company has introduced a flat-fee option for small businesses. Under the new plan, merchants that process up to $250,000 per year can elect to pay $275 per month with no additional fees and no contract.
“For 62 years, merchants have suffered complicated, expensive processing fees. We are giving merchants affordable, predictable pricing,” said Square CEO and co-founder Jack Dorsey. “With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”
Businesses can choose to pay $275 per month to use Square’s service, or the traditional 2.75 percent per swipe. For the smallest merchants, the flat fee may not be the best option but, according to several reports, it would result in savings for businesses that process between about $120,000 and $250,000 in credit card payments per year.