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The new rates for Square for Retail

Square for Retail pricing is changing.
We’re always listening to you, our sellers, and we’ve heard our pricing could better reflect the way retail businesses are run. So we made some changes. It’s now cheaper to add additional points of sale at a location, and we changed the payment processing rate to better suit the average ticket size of retail businesses.

 

[This post was updated in 2019.]

 

Received this email today, indicating that the rates for Square for Retail are changing. While the change per point of sale is an improvement (formerly $60 per, and now $60 for first and $20 per additional), the change in payment processing is bound to be an increase for the vast majority of retailers.

 

The former rate was 2.6% + $0.10. The new rate is 2.50% plus 10 cents.

 

The breakeven point for that rate change is $40. If your average transaction is below $40, the new rate is an increase in costs. And I imagine that most Square retailers see average transactions below that number. If your average transaction is $12.50 (which might be a typical number for a coffee shop), the change amounts to a 20% increase in payment processing costs (from 34.4 cents to 41.3 cents per ticket).

 

I am having a hard time believing this change was made because retailers were complaining that Square's pricing needed to "better reflect the way retail businesses were run".

 

 

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Super Seller Alumni

[This post was updated in 2019.]

 

You are correct this could be an increase for some but this all depends on your business and situation.  

 

I think most coffee shops are using Point of sale over Retail.  This offers no monthly fee and the 2.6% + $0.10 swipe rate. Retail is more for, well retail where your average ticket price it higher.  Even with these price changes, it is still cheaper than most other options out there.  And to now be able to add extra registers for $20.00 instead of $60 is a big saving.

 

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Square

Hello!

 

I’m on the product team for Square for Retail. Thank you so much for taking the time to provide this feedback –we're sorry for any frustration around our new pricing. 

 

When designing the new pricing for Square for Retail, we took into account our seller feedback, and carefully reviewed the average ticket size specifically for current Square for Retail sellers. Since Square for Retail’s features – like a point of sale app optimized for a large catalog and advanced inventory management – are more relevant for larger businesses, the ticket size is higher than the overall Square population.

 

Also, the new pricing is only for swipe, dip or tap payments taken on the Square for Retail app, so our sellers still have the ability to use the standard Square Point of Sale with the 2.6% + $0.10 rate per swipe, dip or tap, and use Square for Retail features in dashboard. Hope this is helpful! 

 

*For additional context on how this plays out with Square's fees, have a look here: Understanding Our Fees | Square PaymentsOr this informative video! 

 

 

Thanks again for taking the time to provide this feedback and thanks as always for being a Square seller!

*This reply was edited by a moderator on August 26, 2020 to offer more visibility into Square's pricing.

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Square

[This post was updated in 2019.]

 

Hello,

 

The 2.5% + 10c rate will only apply to swipe, dip, tap payments taken using the Square for Retail app. So if you're using the standard Square Point of Sale, your rate will stay at 2.6% + $0.10. If you want to read more about payments rates and Square for Retail, check out this article in our support center.

 

Thanks for running your business with Square!

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Do the new rates apply to Weebly e-commerce Portal rates as well, now that Square owns Weebly?

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Super Seller

excellent, this pricing model makes much more sense when adding many registers.

@megank, do custom processing rates override the new pricing model like they do for Square Register?

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Square

Hello,

 

Great question - yes any custom rate will override the Square for Retail rate, just as in Square Register.

 

Let me know if there's anything else I can help you with!

 

Thanks!

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Admin

@DflBakery 


Online payments are not changing - so you should not see any difference with your Only Transactions. This only affect Swiped/Dipped/Tapped payments.

kellyj
Design Program Manager
Square Inc
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