Like many of you who use Square, I received an email from them informing me that they will now drop the $0.15 transaction charge. When I clicked to learn more, I found this posted on their website:
Now when you swipe a card with Square there is just one fee: 2.75%. What you see is what you pay. Square lets you accept credit cards quickly and easily, using what you already have in your pocket: your phone. When you want to know how much money you’ve made, you no longer have to wade through a complex maze of hidden costs and fees. Just simple multiplication and you know what will be in your bank account. Payments, simplified.
I never liked the additional $0.15 charge on top of the 2.75% fee, but I quickly realized Square has to make money too, so I didn’t think much about it. Then again, I don’t have that many transactions.
For those of you who do, it’s nice to save some money. It may not seem like you’re saving much, but if you think about it, you could save a lot of money over time. Mashable brings up an excellent example:
For example, if I used a regular credit card processing company to run my taco truck business and paid $0.15 per swipe, and I had 2,000 transactions at $5.00 each, that’s $300 in fees. If you paid a 2.75% fee instead, the fees come to $275. The savings of $25 seems small, but the savings only grow as the number of transactions grow — and for small and medium-sized businesses (SMBs), every little bit helps.
It is definitely worth mentioning that these are only for swiped credit card transactions. Any keyed-in transactions are still subject to the $0.15 as well as a higher percentage.
Square has posted a video explaining why they dropped the fee, and what it means for merchants. Take a look: