On the heels of its big partnership with Starbucks, Square has just announced a new flat-rate processing fee for small businesses.
Square is a mobile payment service that lets you accept credit card payments anywhere with your iPhone, iPad, or Android device.
As an alternative to the standard per-transaction model, the company now lets you choose between a flat $275 fee per month for unlimited use or a 2.75 percent fee per swipe.
Square will offer the fixed fee to small businesses making less than $250,000 per year. With $250,000 in transactions, paying $275 per month works out to about 1.3 percent per transaction. During the course of a year, if your business goes over $250,000, then the first dollar after will be charged the standard 2.75 percent rate.
Not only is this a significant savings opportunity for Square’s current customer base, but it should help to attract even more attention for the company as well as the mobile payment industry.
Before you start using a Square Card Reader or Square Register, it’s important to weigh the pros and cons of adopting a mobile payment solution. Take a look at your current transaction fees and make sure that Square is the best option for your business.