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I think Square is a fantastic company and they have a very disruptive product, but this is a puff piece. Using a $3 average transaction size plays to its streng
by pitdesi 15y ago
I think Square is a fantastic company and they have a very disruptive product, but this is a puff piece. Using a $3 average transaction size plays to its strengths. Square is in fact cheaper for anyone with a small transaction size. However, it isn't going to be a cheaper option (than a reasonable merchant account) if you're average transaction size is over $17 or so - use this calculator to figure it out... http://feefighters.com/square-calculator http://feefighters.com/square-calculator
That being said, it is very easy to get setup on square and that is a huge plus point. We at http://feefighters.com http://feefighters.com do our best to make it easy to get setup with a merchant account but still recognize that Square makes sense for some merchants (and thus show it in bids and refer a lot of business their way when it makes sense).
EDIT: Earlier had the inflection point at 10, it's actually higher if you don't include the cost of the iPhone service... There is no easy number, you have to play around because of the number of variables. Thanks for the correction dhbanes. Interestingly enough, Squares average transaction size is MUCH larger (close to $80 last time I checked). They have a lot of contractors that use it for 000's of dollars.
Disclosure: we are partners with Square but also with many credit card processors. Our system is completely impartial. We think Square is wicked awesome.
- dhbanes 15y ago...However, it isn't going to be a cheaper option (than a reasonable merchant account) if you're average transaction size is over $10 or so... Using your calculator and a total monthly volume of $4,000 (the default setting), there isn't a single average transaction size that makes Square more expensive than a merchant account - all the way up to $10k. Even when increasing total monthly volume to $10,000, I have to raise the average transaction amount to $50 before the merchant account becomes $20 cheaper per month.