![]() In some cases, that results in the company determining that they can’t serve your business and closing your account.Īdditionally, aggregators are somewhat more risk-averse. With an aggregator, review often comes later. With a processor that does an upfront application and underwriting, applicants are considered before approval. While the quick signup process means you can often start accepting cards same-day, it also opens you up to greater chances of unexpected account closure. However, aggregators don’t do upfront due diligence. Aggregators can be a good option, especially for smaller businesses and individuals that don’t need or want a merchant account with a monthly fee. Square’s application collects credit card information and routes it to Paymentech where it is then routed through Visa or Mastercard’s network to the customer’s issuing bank. Paymentech is the company that processes transactions for Square, and JP Morgan Chase is the company’s acquiring bank (also called a member bank). Square is not actually a credit card processor it’s an aggregator. Update - : Square discontinued $275 monthly flat rate pricing as of November 8, 2013. Update - : During Square’s IPO, information came out that Square lost millions of dollars by processing transactions for Starbucks. This effectively significantly reduces the benefit of using Square for small transactions. Update - : Square eliminated it’s flat 2.75% pricing, instead offering 2.6% + 10 cents per transaction for swiped card payments. ![]() Update - : Square eliminates processing fee returns for businesses that issue refunds starting in April of 2023. Custom pricing available for high-volume businesses. Rates subject to change at Square’s discretion. Additionally, there are different rates for other plans, as noted. Those costs depend on whether you’re taking cards by swiping or keying. In 2019, Square eliminated its long-standing “flat rate” and moved to a flat rate + transaction fee pricing model. ![]() In this Square review, we’ll explore those pros and cons to help you decide if Square is the right fit for your business. Just be aware of the pros and cons before signing up based on name recognition. That’s not to say you shouldn’t use Square. This has allowed the company to grow rapidly, but at the expense and frustration of many of its users – frustration that comes in the form of deposit limits, frozen funds, and poor customer service. ![]() Square has oversimplified credit card processing. It’s best suited for individuals or businesses with low or sporadic sales volume or a low average sale amount. Square credit card processing isn’t a good fit for every business. ![]()
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