In the world of commerce, Square is emerging as a giant in the financial services and mobile payment market. Square is doing well with its mobile point of sales systems for small businesses. It also has various advantages with a simple price structure of 2.75%. However, if you are a merchant agent, it would be good to take a look at the advantages and disadvantages from a merchant perspective.
Pricing
Square does work well in favor of small accounts, but not for medium or large accounts as there are fees that are traditionally designed for small merchants who process very little and have a very small average ticket. Square’s pricing plans start at 2.75% with same day funding for an additional 1% and 0.15 cent per transaction. That’s a whopping total of 3.75% plus $0.15 for the average sale. Take a $100 transaction with Square pricing model and next day funding your merchant would pay $3.90. This is much higher than the standard rate that you can offer.
Another drawback is withholding funds, if Square finds transactions to be suspicious. In addition to this, merchants who use square are locked into only using square devices. This ties merchant to only the software that’s available from Square. Betterpay agents have the ability to offer products such as the Poynt smart terminal, Clover, VeriFone and much more.
Conclusively, it is important for a merchant service agent to inform merchants of the pros and cons of using a Square account. This will help them stay above the competition and maintain leverage over the predominant hype of using Square.
