Square Offers Merchants a Flat-Rate Plan for Payment Processing
By Ina Steiner
Merchants who process up to $250,000 per year via mobile devices through Square can now pay a flat monthly fee of $275 with zero per-transaction or processing fees. Square will continue to offer its original pricing plan that charges a processing fee with no monthly fee.
Square is popular with local small-businesses who process payments on mobile devices. It supports Apple iOS and Google Android devices, and currently does not support any non-mobile devices.
With its original plan, merchants process transactions for a fee of 2.75% (manually-entered cards cost 3.5% plus 15 cents per transaction).
With the new monthly pricing option, all swiped and Pay with Square transactions up to $400 are free, while all manually-entered transactions will continue to cost 3.5% plus 15 cents. There are no additional fees and no contract.
"If you typically process swiped payments less than $400 and over $120,000 per year, monthly pricing may work best for you," according to the Square website.
Starbucks coffee chain recently invested in Square, and Starbucks CEO Howard Schultz joined Square's Board of Directors.
The two pricing plans are explained on the Square pricing page.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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