Can we process card payments through an outside processor and still use Square POS?

[Sherri1]

We are wondering if can we process card payments through an outside process merchant and still use our square POS? We have had offers for processing at a lesser rate and are curious as these merchant service companies have stated that they work with Square users all the time.

[ryanwanner]

Probably not.

When they say they "Work with Square customers" they usually mean that they pull people away from Square completely.

If you decide to jump ship, make sure you're asking all the right questions:

-Is there a contract? If so, what is the early cancellation penalty?

-Do we have to lease a terminal? If so, what is the monthly fee?

-What cards exactly match the 1% (or whatever) rate? Usually it's the generic visa cards that get that rate, every other card especially Amex and Discover are substantially higher

-Are there batch settlement fees? How much?

-Are there monthly statement fees? How much?

-What other add-ons are available (payroll, online store, customer database, capital, feedback, email marketing, facebook marketing)? What is the pricing on those?

-What is the deposit schedule? Nightly? 3-5 business days? Call and beg for the money?

I'm not saying Square is a perfect fit for all merchants out there, but once you start seeing how much the traditional merchant service providers nickel and dime you and lock you into a non-cancellable contract, I wouldn't be surprised if Square ends up on top in terms of the fee costs. I moved from First Data to Square 7 years ago, and even the First Data rep was blown away by what the bottom line fees were. He still is today. 🙂

[GlassJudy]

My 2 cent's worth is that you are completely right @ryanwanner.  I switched from a processor whose stated rates compared not too unfavorably with Square's but they had TONS of add-on fees, all the ones you mentioned in your post.  Square's fees are exactly as advertised, and among the lowest I've ever seen.

[VanKalkerFarms]

I 100% agree with @ryanwanner you have to watch like a hawk what these rates actually are. They may advertise 1.5% but always fail to mention the qualified vs non qualified and tier pricing. Things like discover and Amex are always higher. Reward cards can add another percent or 2 to the “base” rate they advertise. Plus all the other fees mentioned like batch or closing. I’m sure it is possible to get lower rates if you have the right volume and high ticket average but is it worth the gauntlet of trying to read the bill and telling people you don’t take Amex etc. the biggest issue is you won’t find these fees until you get your statement and by then it’s too late as you likely had to sign a contract. 

as for if Square can work with an outside processor the answer is yes depending on how you define work with. You can process outside payments in a different terminal and at checkout use the other payment option, but it isn’t automatic and the transaction won’t be neatly tied to the credit card as it is in Square. It would be similar to processing a check payment where the square app is recording the payment not accepting the payment. 

[Sherri1]

Thank you for the responses to this question. We are happy with Square and how easy the process of using their offering are so we will be sticking.