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Square introduces monthly pricing

squareup.com

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Re: Square introduces monthly pricing

#12

Post by tehwebguy »

Pretty cool, but it's definitely a gamble for a small business that doesn't have proven revenue yet:

- At $10k / month $275 is 2.75%

- At $5k / month $275 is 5.5%

- At $2500 / month $275 is 11%

It doesn't say if there's a commitment or if there's a way to switch back and forth depending on volume.

Re: Square introduces monthly pricing

#13

Post by ConstantineXVI »

tehwebguy wrote: post #12

Pretty cool, but it's definitely a gamble for a small business that doesn't have proven revenue yet: - At $10k / month $275 is 2.75% - At $5k / month $275 is 5.5% - At $2500 / month $275 is 11% It doesn't say if there's a commitment or if there's a way to switch back and forth depending on volume.

Quoth the page:

> "we’ll bill you $275 on the first of each month. Change pricing plans at anytime from Square Dashboard."

So no commitment. If your volume drops too low, seems you can just drop back to their usual rates. And since their "overage" rate is just the standard rate, there's no reason not to do it if your volume's higher than their cap ($250K/yr, max $400/swipe).

Re: Square introduces monthly pricing

#14

Post by rodly »

Is it illegal to chop up payments that exceed $400? If not, I'd say this is a nice way to save a bit of money if you do more than $10,000 in business every month. Not sure if it's worth the hassle to implement though.

Re: Square introduces monthly pricing

#17

Post by charlesju »

phjohnst wrote: post #10
stevencorona wrote: post #2

There 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…

It's not strictly for the band of $10k to $21k per month. It's anyone that makes more than $10k a month because additional swipes after $21k are the same as the opportunity cost.

This is a great deal for any company making more than $10k a day, or about $500 assuming 20 working days a month. It's starting to sound like a decent deal that should appeal to a lot of small businesses.

Re: Square introduces monthly pricing

#18

Post by Cyranix »

Coming back from Portland and pleasantly surprised at the number of cabs using Square. Not an expert in the world of taxi companies, but at first glance the monthly pricing seems like a potential match for them.
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