As many small businesses that use Square Register to process their payment know, Square had previously made available a monthly fee for swipes up to a certain dollar amount rather than having to pay 2.75% each swipe. This pricing structure made taking payments much less expensive for some merchants, but Square recently announced that they are discontinuing their monthly pricing option. Though the news is being met with mixed reviews, Square has released some details about this move.Why is Monthly Pricing Being Discontinued?
Square is standing behind this decision because they feel that the overall cost for businesses to use their service can be reduced by increasing the overall volume of transactions. While the monthly rate was originally designed to entice large businesses to use the product, Square reports that they received an overwhelming amount of complaints from businesses claiming the unrealistic transaction caps led to a restriction in growth and higher swipe costs overall. Square claims that after this unsuccessful “experiment”, they can offer a better deal to all merchants by charging one low flat rate across the board. When asked if there was a plan to reinstate a monthly rate in the future, Square said it wasn’t currently in the cards but refused to rule anything out.
How Will the Change Work?
As of January 31st, 2014, all Square accounts that were enrolled in monthly pricing accounts will be rolled over into a standard pay-per-swipe account. After January 2nd, 2014, users who were enrolled in monthly billing no longer receive bills for monthly fees and will be covered for enrollment through the January 31st deadline. Users who wish to make the switch to a pay-per-swipe account before that date need to unsubscribe before their billing date at the beginning of December.
Are Rates Going to Change Again?
Though Square cannot guarantee any type of permanent rates because of variables like market conditions and overall demand, they remain committed to keeping user charges to a minimum. They are also working hard to stay on top of the features that are needed by both large and small businesses to stay competitive. Square also stated that users can expect stable pricing for their pay-per-swipe plans for the foreseeable future, but that could change at any time.