Square should automatically wave fees after collecting $275 per month.
why?
Square introduces monthly pricing
21–30 of 152 posts
Re: Square introduces monthly pricing
#22This is very cool but not a free lunch. The fees have to come from somewhere. How about no fees for chargebacks too?
Re: Square introduces monthly pricing
#23I see a potential for abuse - if the cash back on certain credit cards exceeds the max rate, people could cycle money through for profit.
e.g. I had a 2% cash back credit card
Cashback: 21k/mo * 2%=$420
Fees: $275
Upside potential: $145/mo
Not much profit possible, but with multiple accounts at roughly 2 $400 swipes per day per account, I would watch out for something like this.
Re: Square introduces monthly pricing
#24So two things that I've never understood.
1) Why is it just now that someone's actually providing competitive service in this space? We've had people selling CC machines and service for years...
2) Where (in general, not just with Square) does the money actually go? It seems that prior to Square announcing this, getting under 2-3% or so was nearly impossible. On the scale of the US economy alone, that's HUGE money. What are the fixed per-transactions costs? Its just pushing around bits in a system right?
Re: Square introduces monthly pricing
#25Now I m waiting for Stripe to do the same thing
Re: Square introduces monthly pricing
#26So two things that I've never understood. 1) Why is it just now that someone's actually providing competitive service in this space? We've had people selling CC machines and service for years... 2) Where (in general, not just with Square) does the money actually go? It seems that prior to Square announcing this, getting under 2-3% or so was nearly impossible. On the scale of the US economy alone, that's HUGE money. W…
There are virtually no fixed costs to actually performing the transactions. The fees are levied by the not-so-competitive Visa/Mastercard/AMEX trio that would love to keep their fees artificially high.
Re: Square introduces monthly pricing
#27So two things that I've never understood. 1) Why is it just now that someone's actually providing competitive service in this space? We've had people selling CC machines and service for years... 2) Where (in general, not just with Square) does the money actually go? It seems that prior to Square announcing this, getting under 2-3% or so was nearly impossible. On the scale of the US economy alone, that's HUGE money. W…
2) Much of it goes to the credit card interchanges (Visa / MC / Amex / Discover). Those are the folks that end up with the bulk of all these fees. Processors are middle-men that make a surcharge on those rates. Many "traditional" merchants offer interchange-plus rates now.
As for 1), the emergence of mobile devices have really enabled this to happen. Square is really useful in the mobile environment. Prior to that, it was Internet merchants and traditional POS systems.
Re: Square introduces monthly pricing
#28Pretty 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).
Ah thanks, didn't see that!
Re: Square introduces monthly pricing
#29Square is really opening the door for credit processing in a lot of places that it wasn't practical before. I just went to a "Food Truck Friday" event at a local park and every single food truck was accepting credit cards via Square.
Re: Square introduces monthly pricing
#30So two things that I've never understood. 1) Why is it just now that someone's actually providing competitive service in this space? We've had people selling CC machines and service for years... 2) Where (in general, not just with Square) does the money actually go? It seems that prior to Square announcing this, getting under 2-3% or so was nearly impossible. On the scale of the US economy alone, that's HUGE money. W…
There are virtually no fixed costs to actually performing the transactions. The fees are levied by the not-so-competitive Visa/Mastercard/AMEX trio that would love to keep their fees artificially high.
There are plenty of costs though, operating global real time processing networks is not free.