If you frequent small businesses, you may have noticed an interesting type of point of service machine when you try to pay. Most likely, the unusual type of point of service machine is run by Square. This service is great for small businesses especially because it can help keep costs down, both installation and running costs. Unfortunately though, for businesses that run these sort of machines, there is a negative change coming.
Starting November 1st, there will be a change to the fee that is charged by Square. Currently, when someone uses a credit card in person, there is a 2.75% flat fee that is charged by square. The fee on these types of transactions will be changed to a 2.60% charge plus a 10 cent fee.
Any other type of credit card payment will remain the same. This includes the online stores that charge a 2.90% fee + 30 cents, and the card not present transactions with a 3.5% fee + 10 cents.
Depending on the cost of services you charge, this fee change could either really help or really hurt your business. If your services are on the cheaper side, then the 10 cents will eat away into profits. If your services are more expensive, then you could really save a lot in between the difference of 2.75% and 2.60%.
My anecdotal evidence would be that the businesses that use Square generally offer cheaper services. I think Square knows this, and that’s why they decided to go with a fee that is more skewed to get more from businesses with smaller costs.
Have you, or does your business use Square as their Point of Service machine? Let us know down in the comment section below how this fee will impact your business!