What Is Square Merchant Services?
Square.com card payment services is now one of the more popular credit card payment services in the industry. Square fills a unique niche in the credit card industry by targeting very small businesses that find it hard to justify monthly merchant account fees.
Square payment processing is a good fit for home based businesses or shops that generate anything between $200 to $1500 per month in sales and who are really looking for a short term, weekend or seasonal credit card processing service. And for business owners who don’t mind paying higher processing fees per transaction for this ability.
Now, although some small restaurants use Square Ipad payment terminals, it’s not the best solution for a restaurant quite frankly. Instead, a restaurant or any business with $5000 per month in sales would pay less and make a bigger profit by using a less expensive regular merchant account and a better credit card machine.
Today, in 2023, here at creditmachines.com with Payanywhere, we offer a more competitive service and better credit card machine options than Square.
Square Processing Fees
Square swiped fees and tap fees are 2.6% with a $0.10 per transaction fee. Keyed in sales are 3.5% and $0.15. E-commerce sales are 2.9% with a $0.30 authorization fee.
In comparison creditmachines.com with Payanywhere equipment fees are as low as 1.69% and $0.25 per transaction.
Here’s one more reason why Square Inc. isn’t always the best choice, daily discounting. Square makes deposits into a merchant’s bank account using a daily discount system. This means that fees are deducted prior to the deposit. For example, if a merchant keys in a $100 sale, they will receive a deposit of $96.35. This is the gross sale amount minus Square’s keyed in rate of 3.50% plus the $0.15 fee per transaction.
Unlike Square, our (creditmachines.com) merchant account services offer a more accounting-friendly monthly discount method. With monthly discounting, the merchant services company makes gross deposits throughout the month and collects fees at the end of the month.
A monthly discount method provides increased cash flow than daily discounting. Plus, it also makes reporting and reconciliation easier for the accountant. Square doesn’t provide monthly discounting.
What Cards Does Square Accept?
They accept Visa, MasterCard, Discover, American Express. If you own a website it’s possible to accept additional cards with the right app. For example, you could add on the ability to accept Paypal or Bitcoin.
Are you ready for a better priced merchant account that even your accountant will love?
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