Square introduces monthly pricing
squareup.com
Square introduces monthly pricing
1–10 of 152 posts
Re: Square introduces monthly pricing
#2There are limits (it's still _revolutionary_ for an industry that loves to nickle & dime, though)
Up to $400 per any single transaction and up to $250,000 in total transactions per year—or approximately $21,000 per month. Swiped transactions over these limits simply cost 2.75% per swipe.
$21,000 * .0275 = $577.5 in fees.
I would love to see more Square adoption. In Charleston, lots of cart vendors (hot dogs, popsicles) use Square, as well as many vendors at the farmers market.
Re: Square introduces monthly pricing
#3Re: Square introduces monthly pricing
#4There are limits (it's still _revolutionary_ for an industry that loves to nickle & dime, though) Up to $400 per any single transaction and up to $250,000 in total transactions per year—or approximately $21,000 per month. Swiped transactions over these limits simply cost 2.75% per swipe. $21,000 * .0275 = $577.5 in fees. I would love to see more Square adoption. In Charleston, lots of cart vendors (hot dogs, popsicle…
I think it's the perfect response to the Starbucks deal. It shows that Square is still keeping small businesses as their top priority.
Re: Square introduces monthly pricing
#5That sounds pretty awesome at first but I guess it would require some math to figure out if you really are saving much compared to normal CC processing.
Re: Square introduces monthly pricing
#6Break even point is $120,000 of transactions per year, if I'm doing my math correctly.
Re: Square introduces monthly pricing
#7Maximum savings for a business is capped at $3,575/yr and if they sell less than $120k/yr, businesses will actually be losing money.
It sounds more like a safe customer acquisition strategy for Square (with acquisition cost maxed at that value) then a huge savings for small businesses (min swipe cost would be at 1.32% compared to 2.75%).
Re: Square introduces monthly pricing
#8That sounds pretty awesome at first but I guess it would require some math to figure out if you really are saving much compared to normal CC processing.
Break even is at $10k / month
Re: Square introduces monthly pricing
#9There are limits (it's still _revolutionary_ for an industry that loves to nickle & dime, though) Up to $400 per any single transaction and up to $250,000 in total transactions per year—or approximately $21,000 per month. Swiped transactions over these limits simply cost 2.75% per swipe. $21,000 * .0275 = $577.5 in fees. I would love to see more Square adoption. In Charleston, lots of cart vendors (hot dogs, popsicle…
Essentially, a 1.32% transaction fee for all revenue under $250,000, 2.75% on all revenue over.
Deal gets worse for the business the further your revenues are from the $250K limit.
Definitely a big deal though.
Re: Square introduces monthly pricing
#10There are limits (it's still _revolutionary_ for an industry that loves to nickle & dime, though) Up to $400 per any single transaction and up to $250,000 in total transactions per year—or approximately $21,000 per month. Swiped transactions over these limits simply cost 2.75% per swipe. $21,000 * .0275 = $577.5 in fees. I would love to see more Square adoption. In Charleston, lots of cart vendors (hot dogs, popsicle…
Don't forget the up-front fee of $275, so max savings are more like $300. Break-even is $10k per month.
It's a nice idea, though I don't know how many companies are in the $10k-$21k/month revenue bucket that would see a benefit. All companies processing over $250k per year can save a max of $300 per month by signing up to the fixed rate plan and then paying the normal fee thereafter.
The new fee band gives savings to those processing more than ~$10k/month, but provides no savings for smaller users.