Square offers flat rate on processing payments
Fresh off its recent $25 million deal with Starbucks, mobile-POS-provider-turned-payment-processor Square is aiming to make payments even simpler for its merchants. The company has announced new "first-of-its-kind" pricing for small businesses. Instead of a flat 2.75 percent fee per swipe, companies can now opt for a monthly price of $275 with no contract or additional fees.
The new plan is a benefit for small businesses that process more than $10,000 a month on Square. Only companies that process less than $250,000 a year qualify, but this still means that businesses processing just under that amount could save around $320 a month or almost $4,000 a year.
Savings aren't the only consideration for merchants. Pricing plans for many merchant acquirers and payment processors are intentionally opaque. With a flat-pricing plan, Square is looking to capitalize on merchant dissatisfaction with the confusing payment options.
"For 62 years, merchants have suffered complicated, expensive processing fees. Square is the first company to rethink electronic payment pricing with the merchant in mind. We are giving merchants affordable, predictable pricing, " said Square CEO Jack Dorsey in a statement. "With one monthly price, merchants know that the [total of] sales they've processed in a day is the same amount deposited in the bank."
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