Square provides relief to SMB’s with Flat Rate Payment Processing Solution
Payment processing has always been an issue for small businesses looking to provide credit card options for their customers. Some companies charge upwards of 3% or higher per transaction, plus setup and device fees which can really eat into profits for MSP’s and IT solution providers. Square, the company known for putting credit card readers into the hands of iPhone users announced a plan to provide flat-rate payment processing to small businesses.
The plan provides for unlimited transactions up to a maximum of $250,000 in processed payments per year for a flat rate of $275/mo. There are no additional fees on top of this which can provide small businesses that do many transactions, a real savings over per transaction fees. Square’s usual per transaction fee is 2.75% which is on par with most other payment processing solutions, but the flat fee structure is a new option in the payment processing industry.
Small businesses looking to sign up for the flat-rate service are not bound to long term contracts and can go back to a per transaction model at any time. Square has recently introduced a cash register type program for the iPad which makes taking payment and controlling inventory easy. On top of this they have payment apps for iPhone and droid devices. Users can take payments with or without the swipe reader as well allowing mobile techs to take payments while in the field for maximum efficiency.
Starbucks recently announced that it was partnering with square to process mobile payments at its company operated stores. This was a significant win for Square and speaks to the innovative and forward thinking approach that Square has been known for since bursting onto the scene in 2010. The flat-rate solution will fit the need of many SMB businesses and will be a welcome answer to the high cost fees associated with payment processing.
SAN FRANCISCO – August 16, 2012 – Square is leveling the playing field with first-of-its-kind simple pricing designed for small businesses. Square first redefined mobile payments by enabling anyone to accept credit and debit cards with a flat 2.75% fee per swipe. Today Square expands its simple pricing for card processing with a monthly price for small businesses which includes 0% processing fee and one flat $275 monthly price, no additional fees, and no contract.
One monthly fee and 0% processing is the first pricing option that gives small businesses a lower processing fee than bigger merchants. Square is committed to offering prices that eliminate uncertainty and are lower than those traditionally only available for big businesses. In an industry that until now has only offered a per transaction fee, now merchants who process up to $250,000 per year can pay one flat $275 fee per month with no fee per swipe.
“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 and co-founder Jack Dorsey. “With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”
About Square, Inc.
Square is revolutionizing millions of everyday transactions between buyers and sellers with its free credit card reader for the iPhone, iPad, and Android devices, allowing anyone to accept credit cards anywhere, anytime. Square Register serves as a full point-of-sale system for businesses to accept payments, track inventory, and share menu and location information. Pay with Square is the most seamless way to pay, enabling individuals to pay with their names at their favorite local merchants, discover nearby businesses, explore menu listings, and store receipts. Founded in 2009, and headquartered in San Francisco, Square is currently available only in the U.S. More information is available at squareup.com.