Costco just offered our company 1.99%+19c per transaction+$5/month.

[knathangallery]

Costco just offered our company 1.99%+19c per transaction+$5/month (no other fees). We're an art gallery and only have a few credit card sales per month. Yesterday, I had a $14,000+ charge. The Costco rate would have saved us over $100 in fees. I checked with Square and they couldn't (or wouldn't) better their card present rate. Should I switch??

[VanKalkerFarms]

@knathangallery, You have to carefully read the fine print.  the * next to the 1.99%* states it is for qualified cards only.  there are different cards and fee structures depending on if they are reward cards and cash back cards and airline miles cards and amazon cards and gas rebate cards etc that will all swipe at higher rates.  before Square we had a processor that had 8 levels of qualified, mid-qualified, and non-qualifed cards all with higher rates, some adding 2% more and you didn't know that till a month later when you got your statement.  maybe 15% actually went thru at the advertised low rate. 

Think of it this way, if you, the seller, aren't paying the reward for your customers card someone is and clearly the credit card processor doesn't want to be that guy.  That is why it is so aweosme that Square just straight up says here is the fee you will pay with no BS.  You can even get customized rates if you sell more than 250,000 in credit cards, https://squareup.com/sales

see this link for a larger breakdown of how other companies can offer (but don't usually give you) the low rates they advertise.

https://www.cardfellow.com/qualified-mid-qualified-non-qualified-credit-card-processing-rates/

[knathangallery]

Actually, in this case with Costco, the no special card rate is 1.22%. But, as we all know, almost every card is some sort of "special." All other cards are 1.99% with no exceptions.

[VCB]

Worth a read: https://www.merchantmaverick.com/reviews/costco-merchant-services-review/

[DoggyLama]

Great point. If it sounds too good, it usually is at all levels in the game. I might still compare, but I know Square's numbers and easy to keep track since this aspect is the most important one of all.

[puka · Accepted solution]

Hey @knathangallery - @VanKalkerFarms explained it better than I could followed up with a pretty informative article from @VCB (I had no idea this existed so thanks!). It sounds like through Costco's services (or Evalon's) you would be under contract with them as well as getting charged a monthly fee. The great thing about Square is that you can use it as much or as little as you'd like and you wouldn't get charged any fees on top of the processing fees per transaction. We aim to be as straightforward as possible with our fees so that you're not left with any surprises. As was stated already, you do have the ability to re-negotiate your rate with us if your annual sales exceed $250,000.

With that said, we always encourage our Sellers to do what they feel is in the best interest of their business even if it means moving away from Square products. So if you feel that that route sounds like the best deal, we completely understand. In either case, we wish you continued growth and success in your business. 👍🏼

[VCB]

@puka what do you suggest to merchants who are not getting any replys to inquiries? We will process close to $400k with Square this year and lately inquiries go unanswered.  We are waiting on a reply regarding a rate review that was initiated with a support rep, and a couple other requests.  No response only makes us look at other options:  https://www.helcim.com/article/helcim-vs-square

[puka]

Great question. Are you contacting the Sales team directly or emailing in through the general Support channels?

[knathangallery]

Thanks for everyone's input. It was all helpful. I think I dealt with Elevon many years ago and it wasn't a good experience. We could probably save a grand or so a year with them, but I'm not sure the hassle would be worth it. I'd like to see Square look at companies like ours who do say 10 or so transactions per month, but some of them are in the $5000+ range and offer us a better rate. Regards to all.

[FES]

We have a similar situation. We deal mostly with professionals, only transacting about 10 credit cards per year. We would do more, but we pass the fee on to our clients, so they usually opt to send a check. It's worth it to wait and save $20 to a few fundred dollars in fees. We're definitely not an account merchant service companies are fighting over.