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It seems like the pitch to consumers here is that you can shop at small and local businesses with your phone. Every business owner I've ever spoken to prefers
by foobarbazqux 13y ago
It seems like the pitch to consumers here is that you can shop at small and local businesses with your phone. Every business owner I've ever spoken to prefers cash for in-person payments if possible, because credit card processors take around 3% of each transaction. I imagine the total fees for paying with an app are even higher.
- dmor 13y agoFrom the Square website: "Pay just 2.75% per swipe for all major credit cards or a flat monthly $275. No other fees—so you know exactly what you pay."
- rdl 13y agoBut there's a $21000/mo maximum for the $275/mo, after which it is 2.75% for additional swipes. Purchases >$400 also are charged at 2.75% for all volumes. So, it's as low as 1.3% if you do exactly $21000/mo in sales. At $10k, it's break-even. Below $10k, it's worse than 2.75%. Between $10k and $21k it gets better, and gets worse past $21k. (Since they include Amex, this would be great for someone doing $21k/mo in Amex charges, though...I think only Costco pays less for their Amex charges.) Compared to running your own account (which is probably about 1.5% all-in for big ticket sales), which clearly makes more sense at some volume ($50k-100k/mo vs. Stripe, probably)
- foobarbazqux 13y agoI read that as 2.75% below $10K, but I think hitting $10K in Square sales per month is difficult if we (generously?) assume that's 10% of your customers, so effectively it's like any other ~3% CC for a majority of small and local businesses. It's good to hear it's not generally worse though, I guess they thought about that.