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Wed Aug 17 2016 23:00:52

Alternatives to PayPal and Square with Latter's New Rates?

By: Reader

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Dear Ina,
With Square increasing its fees in a month for invoicing customers, do you have any suggestions that would prove to be less expensive as an alternative, other than just offering customers PayPal?

Letter received from Square:

This is a friendly reminder that your promotional processing rate of 2.75% for Square Invoices expires on September 16, 2016. Invoices pricing increased on June 16, 2016. As an active Invoices seller, you qualified for our extended promotional rate.

Starting September 17, 2016, your processing rate will be 2.9% + 30¢ per invoice paid online. Just as before, there are no monthly fees, contracts, or hidden fees for Square Invoices.

If you have any questions, please visit our Support Center.

As always, thank you for being a Square seller, and for using Invoices.
The Square Team

Thanks
S.




Comments (15) | Permalink

Readers Comments

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: Rexford

Thu Aug 18 06:35:34 2016

I wonder why the 30 cents additional. Was the percentage increase not enough?  Jack Dorsey must need a new summer home.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: Ina

Thu Aug 18 07:52:23 2016

FYI, the letter from Square doesn't mention it, but there was always a 30-cent processing fee.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: DingDong This user has validated their user name.

Thu Aug 18 11:17:19 2016

Stripe and Paypal also have 30-cent plus a %.
It seems everyone is charging a 2.9% fee plus the .30.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: Rexford

Thu Aug 18 13:15:54 2016

Thank you Ina.  I guess it's the resort fee of the payments industry.  :)

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: quirkyantiques This user has validated their user name.

Thu Aug 18 18:27:48 2016

2.9% is pretty much an Industry standard. I'll be honest with you-I signed up a few years ago for a merchant account. My processing rate was anywhere from between 1.6% and 2.2% but here is the rub. You are nickled and dimed monthly for ''gateway fees* of $7 to Visa, $7 for another one, $7 for this one PLUS there is now a mandatory ''data security compliance fee/license'' which then was about $110 per year. By the time I added up all the bs charges it worked out I paid between 3.3% and 3.8% per transaction. To pay nothing for Square, no compliance fees and to get away with the freedom of no contract for 2.9% plus 30 cents is a gift. Not to mention the lack of interference, unlike Preypal.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: tango This user has validated their user name.

Thu Aug 18 19:18:53 2016

strikes me as odd - if everyone is charging the same % and small fee.  Collusion?  I mean that means they are all happy with their cut, and no one wants to compete... that is rare, very rare... and very odd.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: thebobman This user has validated their user name.

Fri Aug 19 00:09:56 2016

So, your fees went up 15 cents per $100 charged. Or $150 on $100,000 of sales.

Man...if my profits were that slim, I'd be looking into other products to sell

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: handmedownheaven This user has validated their user name.
Web Site

Fri Aug 19 01:17:04 2016

I have no problem with 2.9% and 30 cents per.  Our physical store tried using typical credit card processing.  Each required a contract, plus there was this fee and that fee.  The shocker was at the end of the year when they took $99 out of my account for a PCI compliance fee.  Our non profit resale store was averaging $30-$40 a month in processing fees plus the $99.  We switched our website & store to Paypal here in the store, Paypal on the website.  Now our fees for the same average transactions per month averages $14-$16 a month.  Much better deal

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: Chicago48 This user has validated their user name.

Fri Aug 19 02:46:32 2016

This is why some B&M businesses are going all-cash.
The only way around the fee is to sell at flea markets and take cash.
They are all the same rates.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: globalhistory This user has validated their user name.

Fri Aug 19 05:03:38 2016

Alternative: CASH ( no coins) and/or STAMPS and ofcourse checks.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

by: hopeforthebest This user has validated their user name.

Fri Aug 19 08:39:59 2016

Your 'promotional processing rate of 2.75%' will increase to '2.9% + 30¢'.

That's a .15% increase, as someone pointed out 15 cents on $100. + the $.30, of course.

I wish all my vendors raised prices by ONLY that much! :)

I usually expect 'promotional' rates to expire at some point.

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: toolguy

Fri Aug 19 10:57:06 2016

Mark my words

Cash will be a thing of the past in 10 years.

Digital money is better for all reasons except FREEDOM.

Cash is dirty, it brings on crime, it makes people not pay taxes, it cost money to make money.

With digital money the government can take their share of every single transaction. When you pay your baby sitter the government will take their cut, when you buy your next door neighbors lawn mower the government takes their share.

It's hard to do a armed robbery on a business when they have NO money!

It's coming like it or not. . .

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: Marie

Fri Aug 19 18:48:06 2016

PP has had a per transaction fee for a very long time.  I'm not sure why it seems to be a surprise to some.  In fact, up until a few years ago, if you refunded a customer fully, PP refunded the percentage fee AND the transaction fee.  Of course they don't do that anymore.  I personally thought that was pretty generous and it is no surprise that is history now.  But the did it for years before they changed it.

As for the increase on PP percentage.  It has been years since PP raised it's fee.  So they removed the discounted rate for most sellers that could achieve it.

While I know some of you have had significant issues with PP over the years, for me it has been a great value for the money.  Yes I've had problems, but not excessively so.

If you are big enough to have your own merchant account, you will find that the fees you pay will be much higher than Square of PP for credit card payments.  

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: RKTOYS

Mon Aug 22 09:40:42 2016

"It's hard to do a armed robbery on a business when they have NO money!"

But it's far easier to do a long distance robbery.

Personally, I like the deal Square offers but I rarely use it anymore.  No venue supports it and practically nobody will pay by invoice.

Even toy shows, where I used to have a healthy percentage of electronic transactions, nobody is charging anymore.  Last two shows I went to, everybody paid cash.  Only one person even asked and got upset when I wouldn't accept a Paypal "gift" in lieu of Square to help him evade $3 in sales tax.  Sorry, I operate a legitimate business...

Alternatives to PayPal and Square with Latter's Ne   Alternatives to PayPal and Square with Latter's Ne

This user has validated their user name. by: RKTOYS

Mon Aug 22 09:50:35 2016

"no venue supports it"
Of course, there is Square's own marketplace, where they've made the idiotic decision to support only flat-rate per-order shipping.  Not wanting to take a bath on shipping to California or price myself out of the east coast market is half of the reason that I don't bother with Amazon anymore.



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