4 ms·

That's a very narrow window of value. If < $10k means you're better off going with the per-transaction rate, >10k but less than $13,095 means you're better off

by rexreed 14y ago

That's a very narrow window of value. If < $10k means you're better off going with the per-transaction rate, >10k but less than $13,095 means you're better off with a regular merchant account and > $13,095 but less than $21k means you're better off with the flat rate, then how many firms would really benefit from this? Looks like they should say "if you're doing more than $10k (or $13k if you want to bring in the competition), but less than $21k, take this deal". But of course, no one would take it.

abalone 14y ago
Square has value beyond their rate. They also have an interesting/evolving point-of-sale iPad app, and a groundbreaking wallet app. These could help grow business beyond the shavings of a percent that you'd save playing the processor numbers. And there's value in a simple rate, too. Yes maybe you could run the numbers and find some scenarios where you'd save elsewhere, but it's a very confusing and somewhat deceptive landscape, and if you get it wrong you might actually end up paying more. There's value in knowing that you're going to get a pretty fair and understandable rate up to at least $250K/yr of revenue.
nnnnnnnn 14y ago
Not "less than 21k." There is no upper bound on the value. You always save money, provided you process upwards of $10k/mo. A merchant processing 50k/month on square paying 2.75% would save money by switching to the new plan. At least, if I'm reading this correctly.
- wadetandy 14y ago
  Except that merchant can't switch to the plan if they process that much, since it is limited to merchants under $250,000/year.
  - suldan34 14y ago
    after 21k per month, you jump back to the regular rate of 2.75% per transaction. Over $10,000 per month, Google Checkout charges me 2.2%. But of course with Google Checkout you can't do all of the cool things that you can do with Stripe.
  - nnnnnnnn 14y ago
    No, it isn't limited that way. It's 0% under 250k, and reverts to the regular 2.75% if you process above those limits.

by rexreed 14y ago

abalone 14y ago

Square has value beyond their rate. They also have an interesting/evolving point-of-sale iPad app, and a groundbreaking wallet app. These could help grow business beyond the shavings of a percent that you'd save playing the processor numbers. And there's value in a simple rate, too. Yes maybe you could run the numbers and find some scenarios where you'd save elsewhere, but it's a very confusing and somewhat deceptive landscape, and if you get it wrong you might actually end up paying more. There's value in knowing that you're going to get a pretty fair and understandable rate up to at least $250K/yr of revenue.

nnnnnnnn 14y ago

Not "less than 21k." There is no upper bound on the value. You always save money, provided you process upwards of $10k/mo. A merchant processing 50k/month on square paying 2.75% would save money by switching to the new plan. At least, if I'm reading this correctly.

wadetandy 14y ago
Except that merchant can't switch to the plan if they process that much, since it is limited to merchants under $250,000/year.
- suldan34 14y ago
  after 21k per month, you jump back to the regular rate of 2.75% per transaction. Over $10,000 per month, Google Checkout charges me 2.2%. But of course with Google Checkout you can't do all of the cool things that you can do with Stripe.
- nnnnnnnn 14y ago
  No, it isn't limited that way. It's 0% under 250k, and reverts to the regular 2.75% if you process above those limits.