Square Eliminates 15¢ Fixed Fee On All Swiped Payments
Square, the mobile payment processor, which we reviewed in the past has recently announced that they have eliminated the 15¢ fixed fee that was incurred with every swiped (using the reader) payment. Now, all you have to pay on a per transaction basis is the 2.75% fee as opposed to the 2.75% + 15¢ fee (per transaction) which was the case previously. However, credit card payments accepted by Square that are manually entered still require a 3.5% + 15¢ per transaction fee.
This announcement definitely differentiates Square from its current competitors and especially from current credit card processing companies who take a large amount of fees (typically). In fact, according to Square, many businesses are not even aware of how the fees work or how much in fees is taken. You can watch the video (provided by Square) where they speak with several business owners about credit card fees.
Mobile payments is definitely going to be a huge trend in 2011 and onward, I think this step by Square will definitely heighten interest in their service, especially for small/medium businesses. After all, who actually likes paying fees? The less, the better.