Square introduces monthly pricing

Post by jcampbell1 » Thu, Aug 16, 2012, 6:37 PM UTC

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…

Post by tibbon » Thu, Aug 16, 2012, 6:48 PM UTC

gsibble wrote: post #40

tibbon wrote: post #24

So 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…

Hi tibbon! To answer 1: Almost all of the fee structure goes to players much higher up the chain than Square. The networks take a chunk, but in fact most of the fee goes to the originating bank (the bank that issued the card). This is a major source of income for most banks these days and can generally be arbitrarily set by them since merchants not only have no other options except cash, but also cannot tell what the…

Post by ricardobeat » Thu, Aug 16, 2012, 6:56 PM UTC

lordlarm wrote: post #44

The next step for Square, in my opinion, is developing a reader for the EMV cards ( http://en.wikipedia.org/wiki/EMV ), which is hugely dominant in Europe - and also more secure. See a this useful Quora post, from 12 months ago: http://www.quora.com/How-does-Square-intend-to-translate-the... Going international, or making such a reader, opens up an enormous market and the potential is huge. I'm waiting, excited, as I…

Post by dangrossman » Thu, Aug 16, 2012, 7:00 PM UTC

philip1209 wrote: post #23

I 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.

Post by notregistering » Thu, Aug 16, 2012, 7:00 PM UTC

gsibble wrote: post #40

tibbon wrote: post #24

So 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…

Hi tibbon! To answer 1: Almost all of the fee structure goes to players much higher up the chain than Square. The networks take a chunk, but in fact most of the fee goes to the originating bank (the bank that issued the card). This is a major source of income for most banks these days and can generally be arbitrarily set by them since merchants not only have no other options except cash, but also cannot tell what the…