The mobile payment company Square now offers business a flat $275 monthly usage fee for their service. This is revolutionary for the credit card payment industry because they are the first company to rethink their business model with the merchant in mind. The $275 monthly usage fee allows for unlimited transactions making it easier to keep track of transactions.
“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 said in a press release. “With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”
The amount you charge your customer is the amount that goes into your bank account. This shift in thinking will make it easier budget monthly expenses, pricing and accounting. Great move on the part os Square. I am not sure how they came up with the $275 fee but I am guessing someone in that room might have said, “What if we just get rid of the period”, so instead of 2.75% per transaction it is $275 per month. Genius!