With Square, on a swipe or dip, it’s a flat 2.75% fee.
If you enter it manually (i.e. over the phone, internet, etc…) then it’s 3.5% + $0.15 fee
If you are a high volume merchant (> 250K/yr) then they can cut you special deals.
The other thing I didn’t mention is that it does not matter if it’s Visa, MC, Amex, Discover, Debit Card
They are all the same rate.
Traditional processors will charge more for Amex (that’s why some place don’t take it) because it’s a different system than Visa & MC. A loyalty card, cash back, frequent flyer credit card? Guess what, those perks a paid by extra fees that traditional processor pile on top of their regular transaction fees and that merchants end up absorbing.
That’s why it’s impossible to decypher a traditional processor report.
With Square, because of the flat fee, none of that matters to me as a merchant.
It goes back to knowing exactly how much you’ll put in your pocket.
Square absorbs those costs from its cut. The nominal 2.75% rate is higher than what traditional processors quote (anywhere from 1.25% to 2%) BUT there are all sorts of fees added on top ($25 monthly fee, etc…) and the extra % for perk cards, Amex, etc…
It just flabbergasts me that small retailers are still going with regular processors.
Did I mention you usually have to purchase the credit card machine for anywhere from $300 to $700+, have it programmed, pay maintenance, etc…
That’s why lots of small places have not gone to the chip yet (need to replace the machine) and still swipe only. The bad thing is that on a swipe, the merchant is now liable for fraudulent activities.
You need to dip (i.e. have chip reader) for the credit card to cover fraudulent activity.
With Square, it cost us an iPad, a stand and the $49 chip reader - not necessarily cheaper than a CC machine…
BUT the iPad can be used as a Point-of-Sales system, interface with a cash drawer, print out receipts on printers, manage inventory. AT NO COST TO THE MERCHANT.