Instead of having to pay a fee of 2.75 percent for each transaction, small business merchants can opt to pay $275 per month, with zero per-transaction or processing fees. The company is still offering its original plan, giving business owners a choice.
“For 62 years, merchants have suffered complicated, expensive processing fees,” said Square CEO and co-founder Jack Dorsey in a statement. “Square is the first company to rethink electronic payment pricing with the merchant in mind. We are giving merchants affordable, predictable pricing. With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”
The application, which had already been popular among small business owners, is likely to continue being a favorite. These types of discounts are typically reserved for larger companies that process massive transaction volumes. With Square offering this payment plan, they are leveling the playing field for smaller businesses that do not benefit from the economies of scale that larger corporations do.
Under the plan, all swiped and Pay with SQuare transactions up to $400 are free, according to EcommerceBytes. All manually-entered transactions will continue to cost merchants 3.5 percent plus 15 cents, with no other fees or contracts to worry about.
Subscription commerce companies like Square can easily manage their service offerings with a cloud-based subscription management platform, which will enable them to effectively manage the complete subscriber lifecycle, from calculating the bill to receipt of payments.