Square is now turning the tables by offering a flat monthly transaction fee of $275 for merchants who do more volume. Basically, Square is going to offer small businesses who make less than $250,000 per year worth of transaction the option of either paying the set 2.75 percent per swipe or one fixed price per month, at $275 per month, with no charge per swipe.With $250,000 in transactions, paying $275 per month works out to around 1.3 percent per transaction, which is significantly lower than the current rate of 2.75 percent.
If a business goes over $250,000 (and had opted into the monthly swipe fee) then the first dollar after will be charged the standard 2.75 percent rate.
One way or the other, the trend in transaction fees will keep dropping as the mobile payment business gets traction. Every newly competitive business has that impact on prevailing prices.
No comments:
Post a Comment