4 ms·
$1 + 2.9% : "Square can afford to give away the dongles because they will be banking 2.9% of each transaction." Not so cheap.
by proemeth 17y ago
$1 + 2.9% :
"Square can afford to give away the dongles because they will be banking 2.9% of each transaction."
Not so cheap.
- joezydeco 17y agoWhat's the typical Visa and MasterCard vig these days? Isn't it around 2.5%?
- dhyasama 17y agoVisa and Mastercard charge merchant account providers a set percentage (called interchange) and then the providers mark up from there. Interchange is different for every industry because of varying fraud and chargeback rates. Also consider the risk of card present versus card not present (or ecommerce). So I guess this is a long way of saying it depends. For card present situations like Square will always be, you can get an account under 2% if you are in a low risk industry and hammer your sales agent.
- dhyasama 17y agoExactly. 2.9% is very high for card-present transactions where the risk of fraud is lower and 1.9% is more normal. The extra 1% will cover a lot of fraud/chargebacks.