Just a couple of decades ago, credit cards were nowhere near as widely accepted as they are today.
In those days, most customers carried cash, and many small businesses found it too expensive and complicated to process cards.
Nowadays, however, many people have gotten out of the habit of carrying cash since electronic payment systems have become ubiquitous, and businesses of every size, from the locally-owned coffee shop to the potter who sells ceramics at craft fairs, must be able to accommodate their customers.
Consequently, there is a healthy market these days for mobile payment systems small businesses or individual vendors can use with a smartphone or tablet. Square is one of the oldest mobile payment systems, and its straightforward fee structure is one of the features that keep it competitive.
Square offers several card reader options that are compatible with iOS and Android mobile devices: a small, square magnetic strip reader that plugs directly into a phone or tablet, a slightly larger plug-in card reader that can read chips and accept payments with an NFC reader, and an iPad stand (tablet not included) that makes it easy for customers to sign and leave a tip directly on the tablet.
Square Processing Rates for Online Businesses
Online businesses can use Square’s e-commerce API or invoice service to process online credit and debit card payments. In addition, Square provides a point-of-sale app with a simple user interface for the customer along with analytics and sales reporting for the seller. All products are PCI compliant, and each transaction is encrypted when the card is swiped.
Square has kept its fee structure simple and straightforward, charging 2.75% of the sale per magnetic strip, chip, or contact-less transaction. The fee is slightly higher, at 2.9% plus an additional 30 cents per transaction, for e-commerce or invoice payments.
If the sales clerk keys in the credit card information manually, the fee is 3.5% plus an additional 15 cents per transaction. Square explains the higher fee is due to the greater security risk since neither the customer nor the card has to be physically present when the numbers are entered.
What Cards Does Square Accept?
Square accepts all major credit cards (Visa, MasterCard, Discover, American Express, JCB, and Union Pay), and all cards have the same fees applied.
Square makes no distinctions among types of businesses either, as for-profits and non-profits pay the same square processing rates.
These fees include any charges made by the credit card companies.
What Are Advantages With Square Processing Rates?
While some mobile payment processing services charge for refunding money, terminating a contract early, and other actions, Square does not charge any hidden fees.
All square processing rates are upfront and easy to understand.
In addition to payment processing, Square also offers subscription services, such as employee management (at $5 per employee per month), payroll management (starting at $25 per month), and e-mail marketing (at $15 per month), to name a few.
For no extra charge, Square deposits the money in the seller’s account one to two days after a transaction. For 1% of the amount of each deposit, sellers can receive money instantly, even outside of normal banking hours.