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Through the use of elementary arithmetic, Square is charging every company the average expected transaction fees for the month, regardless of whether the actual
by biot 14y ago
Through the use of elementary arithmetic, Square is charging every company the average expected transaction fees for the month, regardless of whether the actual transaction fees would be higher or lower than this. So half the companies save money while the other half lose money.
This is being spun as an innovation when, in reality, it's likely to net Square more revenue as there are probably more merchants between $0 - $10K than there are $10K - $21K.
- eridius 14y agoNo they're not. They're only charging companies that sign up for this fee structure. Anyone who signs up for this when they're not making $10k is bad at math.
- biot 14y agoMost people who sign up for a fixed monthly fee gym membership are bad at math rather than paying a smaller drop-in fee. It makes for good revenue for the gym though. And for those who workout a lot, it is a good deal.
- nnnnnnnn 14y agoThere's no upper bound. Businesses making $30k per month still save money with the monthly pricing. It's a good deal for any business swiping over $10k/month on average.
- kennywinker 14y agoNot sure what traditional payment terminals charge, but presumably when you start doing large volume they bring the cost down. There is going to be a point where square's flat 2.75 between 0-10k/month and 21k/month-infinity is more expensive than a bank terminal (which I'm sure fall to >1.5% at high enough volume).