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A Change to our Tap, Dip, and Swipe Rate

Hi Seller Community,

 

Caty here, writing with an important update on Square’s standard card present processing rate (e.g.: swipe/ dip/ tap transactions.)

 

This morning we began notifying existing sellers that we’ve changed the standard 2.75% processing rate for tapped, dipped, and swiped transactions to 2.6% + 10¢ per card present transaction. For existing sellers — which many of you are — this change will come into effect on November 1, 2019. 

 

This rate change does not affect the existing processing rate for card not present (manually keyed-in-payments), Card on File/ Virtual Terminal payments, payments taken with Square Register or Square Terminal, payments taken with Square for Retail or Square for Restaurants, or any customers under an existing custom pricing agreement. Additionally, all sellers will still enjoy the following benefits: 

  • One rate for all major cards
  • No startup fees, statement fees, refund fees, PCI-compliance fees, chargeback fees, or business card fees
  • End-to-end encrypted payments
  • 24/7 fraud prevention
  • Payment dispute management
  • Fast deposits, and real-time access to your funds with Square Card

 

Why are we making this change?

Since our inception we’ve been committed to building accessible, easy to use tools designed to help sellers of all sizes start and grow their businesses. Like any company, we regularly review the market forces and revisit our decisions to ensure we’re best positioned going forward.

 

The payments landscape has changed significantly since we were first founded, and the flat 2.75% rate simply doesn’t cover all the costs that it used to. Square pays a combination of fixed and variable fees to both banks and card networks on each payment we process. Adding the 10¢ fee helps offset these costs, and is also what enabled us to reduce the variable rate to 2.6% per card-present transaction.

 

How might this impact you?

As mentioned, this rate change impacts anyone who is currently using our standard, 2.75% processing rate when accepting card present transactions through Square Point of Sale. No other rates are changing, including those currently using custom pricing, or paying 2.6% + 10¢ for card present transactions (e.g.: Square Register or Square Terminal.)

 

If you’re using the standard 2.75%, our team has worked hard to build a detailed calculator that estimates the differences in fees you might pay based on last year’s card present payment history. Keep in mind, this tool uses historical sales data to estimate what your fees might look like under the new, card-present processing rate. Your actual fees may vary depending on a variety of factors, including: ticket size, number of transactions processed, seasonality, and any growth your business may experience in the future.

 

Please log into Dashboard to check it out, and don’t forget to read our Pricing FAQ as well.

 

Final Thoughts

For some sellers, this change will be welcomed. For others, we know it will take more getting used to. We worked diligently to ensure we were able to make the best decision possible for all involved. If you choose to comment on this thread to express your feedback, please keep our Community Guidelines in mind. 

 

On behalf of all of us at Square, we deeply and sincerely appreciate the opportunity to help you run your business, and we look forward to working with you to grow into the future.

 

With gratitude,

Caty

 

Global Head of Scalable Customer Success

Square

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Verified Answer

A Change to our Tap, Dip, and Swipe Rate

Hi Seller Community,

 

Caty here, writing with an important update on Square’s standard card present processing rate (e.g.: swipe/ dip/ tap transactions.)

 

This morning we began notifying existing sellers that we’ve changed the standard 2.75% processing rate for tapped, dipped, and swiped transactions to 2.6% + 10¢ per card present transaction. For existing sellers — which many of you are — this change will come into effect on November 1, 2019. 

 

This rate change does not affect the existing processing rate for card not present (manually keyed-in-payments), Card on File/ Virtual Terminal payments, payments taken with Square Register or Square Terminal, payments taken with Square for Retail or Square for Restaurants, or any customers under an existing custom pricing agreement. Additionally, all sellers will still enjoy the following benefits: 

  • One rate for all major cards
  • No startup fees, statement fees, refund fees, PCI-compliance fees, chargeback fees, or business card fees
  • End-to-end encrypted payments
  • 24/7 fraud prevention
  • Payment dispute management
  • Fast deposits, and real-time access to your funds with Square Card

 

Why are we making this change?

Since our inception we’ve been committed to building accessible, easy to use tools designed to help sellers of all sizes start and grow their businesses. Like any company, we regularly review the market forces and revisit our decisions to ensure we’re best positioned going forward.

 

The payments landscape has changed significantly since we were first founded, and the flat 2.75% rate simply doesn’t cover all the costs that it used to. Square pays a combination of fixed and variable fees to both banks and card networks on each payment we process. Adding the 10¢ fee helps offset these costs, and is also what enabled us to reduce the variable rate to 2.6% per card-present transaction.

 

How might this impact you?

As mentioned, this rate change impacts anyone who is currently using our standard, 2.75% processing rate when accepting card present transactions through Square Point of Sale. No other rates are changing, including those currently using custom pricing, or paying 2.6% + 10¢ for card present transactions (e.g.: Square Register or Square Terminal.)

 

If you’re using the standard 2.75%, our team has worked hard to build a detailed calculator that estimates the differences in fees you might pay based on last year’s card present payment history. Keep in mind, this tool uses historical sales data to estimate what your fees might look like under the new, card-present processing rate. Your actual fees may vary depending on a variety of factors, including: ticket size, number of transactions processed, seasonality, and any growth your business may experience in the future.

 

Please log into Dashboard to check it out, and don’t forget to read our Pricing FAQ as well.

 

Final Thoughts

For some sellers, this change will be welcomed. For others, we know it will take more getting used to. We worked diligently to ensure we were able to make the best decision possible for all involved. If you choose to comment on this thread to express your feedback, please keep our Community Guidelines in mind. 

 

On behalf of all of us at Square, we deeply and sincerely appreciate the opportunity to help you run your business, and we look forward to working with you to grow into the future.

 

With gratitude,

Caty

 

Global Head of Scalable Customer Success

Square

235 REPLIES 235

It doesn't matter to me what your reasons are for increasing my prices.  It's hard enough running a business in the food industry and trying to make ends meet.  When I need to push through price-increases in my business, we "grandfather" our current clients in at their existing rates until they change or adjust their services.  I wouldn't dream of ramming a MASSIVE increase down the throats of my existing clientele, I work too hard to earn each customer that it would NEVER be worth it to me to offend them to the point they leave... apparently Square sees this differently.  I used to be a fan and tell everyone how happy I was with Square.  Now I'm the extremely upset and vocal customer who is willing to pay more for a competitor's product because of how I've been treated.  Square can pad its margins on some other sucker, I'm getting ready to send my equipment back.

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The processing fees are ridiculous . If I can't get them reduced I plan to switch my service. I thought I was grandfathered in with the lower rate. I can barely see my profits with these high fees

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Why did the percentage went up on the square?

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Square Community Moderator

Hey @glelpaul12 and welcome to the Community.

 

I moved your post to an existing thread in the Community on the re-pricing so you can read through for more details. 

 

Check out Caty's post on the first page. 

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
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I love the square because flat rate system now changed I don’t like feessystem.i don’t wanna pay %+10cent.just % flat rate is good.

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