A Change to our Tap, Dip, and Swipe Rate

[Caty]

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

[#2]

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

[Helen]

@mhugil I'm sorry for any confusion. I've sent you a private message to answer all of your questions.

@mat I'm very sorry for this experience. I'm also sending you a private message with more information about the free alternative to Team Management, called Team Permissions, which I hope you find helpful. 

[Frank828]

Your new pricing is forcing us as well to find a lower priced alternative for our coffee shop.

We've been satisfied with several of your services for years, but a sudden huge price increase is forcing our hand.

Really quite disappointed after we've sung your praises to so many business oweners over the years.

[RandiJ42]

We're in the same situation. We'll be looking to switch also. 

[Houtenscafe901]

I've recommended square to so many small businesses....feeling a little foolish right now 🤔

[RoasterChica]

Just beware @mat!   The POS system times out frequently and then Team Permissions requires that the Owner Passcode be re-entered.  If you want to keep that passcode private (which is the point), you'll be contacted by your shop at any hour saying they're locked out.  

You can read more about that conversation at the end of this thread https://www.sellercommunity.com/t5/Product-Updates/Improvements-to-Sales-Reports-in-Square-Point-of-...

[tyler]

+1 for having to wake up to this terrible news. It will be a over 30% increase for us. That’s robbery. We were gonna buy a second square stand, but thanks goodness we hold off on that.  Time to look for another provider. Thanks a lot Square. 

[joshuamoffit]

Your new transaction fees will drive a lot of small businesses away from using Square. We are a coffee shop that deals mostly with small transactions and as a result your new fees will significantly increase are expenses per year. We will likely be looking elsewhere for our POS device.

[byebyesqaur]

Dear Square,  I was wondering which shifts you would like to pick up at OUR cafe starting Nov. 1?  Apparently we are partners now!  I have a average ticket of $3.65, so now On my $500,000 in sales I will make about $8,000 less in profit!  Since you will now be making about 35% as much as I do from my store, I guess we are partners and I will need you to start picking up a few shifts each week.

Sad, as I use square at two of my stores and use loyalty and marketing (Thanks for the $10 bump in that rate a few months back btw).  I used to have a great response to the 3 or 4 processing companies that called every day to get my business.., "Send me a contract guaranteeing that you can beat Square's rate"  I would say.  They never did.

Other irate square customers...there is a great program from possuppliesonline.com,  It is $45 per month and 3.99%, which can be added as a cc convenience fee, or raise your menu prices by 4% and offer a cash discount.  Ask for Zack,  there is no contract and card reader is free.

Also, Paypal has a flat 2.7% rate that they use with some other POS companies.

Thanks again Square

Doug

Fresh Market Cafe

[Houtenscafe901]

Thanks for the smile ☺....I wouldn't mind my new "partners" picking up a few shifts too....I need a day off!

[bobalove]

Wow. What a great way to start off our day. 😠

This REALLY hurts all of our family's small businesses. We primarily sell beverages (tea, coffee, smoothies, etc.), so our ticket size is pretty small compared to actual restaurants ($2.50 - $5.00). With the new change, we'll be paying nearly $3,000 more on an annual basis. THAT'S INSANE. Not only are you guys increasing the rates, but we are still having to pay subscription fees for nearly everything. Loyalty, there's a fee for that. Marketing, another fee for that. Payroll, another fee for that. Team Permissions, yes.. you guessed it, another fee! Square is looking to put small businesses out of business. 

Why couldn't you guys have different pricing tiers based on the average ticket size for individual businesses. All of the coffee, tea, smoothie shops out there that use Square.. we are taking a big hit on our sales with this change. 

Sad to say that we will now be looking at other options. Our entire family has 6 accounts with Square and have been loyal customers for years now. This is extremely disappointing news. 

[RoasterChica]

Guys, it doesn't even really matter if your ticket size is higher! 

Our average ticket size is about $10 but when I called Square yesterday to see if we might qualify for custom pricing I was denied.  According to Square's info online you have to process more than $250K in card sales AND have an average ticket size over $15.  Most small businesses will not qualify 😞

If we stay with Square we'll be paying $3,500-$4,000 more in fees per year which is not sustainable!  It's difficult to switch once you're entrenched with a POS system, but we'll also be looking into other options. 

Square began as a champion of small business and now it's clearly working for its shareholders not its customers.

[Borealis]

Bummer. My average ticket price is less than $6, so I get to pay $289-$375/Mo more for no additional services. All the benefits I’ve been enjoying and the ease of use aren’t worth the GOUGING that is about to occur. 

Its been fun while it lasted, but it’s time to look for somebody else for my card processing. 

[KokopelliCoffee]

You're saying  I have to pay an additional $360 per month. This adjustment is inappropriate for a small coffee business where I have hundreds of small transactions every day. That's why I chose Square to begin with. There must be another option or solution so you don't lose all the small businesses. 

[Frank828]

This is what I'm hoping for.  Square needs to quickly come out with something that makes sense for all the smaller per ticket accounts out there.

A lot of my day has been spent researching other POS options.  

[MichiganFarmsta]

Thankfully, this does not affect the custom rates.

[Helen]

@MichiganFarmsta I'm really sorry to hear you'll be looking for alternatives. A member of our team is going to reach out to you with more information. 

[telehort]

@Helen  - have someone reach out to me too because after 7 or 8 years with square and loving it so much i even own stock,  it's gonna suck to find another provider but without some other pricing options it may not be worth sticking around

[Helen]

Of course @telehort, I can understand that you need to review your options. I've just started a case for you and a member of our CS team will email you as possible today.

[GeorgeX]

"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"

WHAT A CROCK! Don't insult our intelligence with your spin! This is going to hurt small transaction businesses! I own an ice cream shop and, like the thousands of coffee shop customers you have, I have small average transaction sizes. When I look closer at my median transaction size, this change will result in my paying about 5%!!

If you really cared about keeping us you'd create some kind of tiered pricing that's fair to all of your customers. This is insignificant to businesses that sell higher ticket items, but it screws the coffee, ice cream, and similar businesses. Unless I hear from you offering an alternative, and more equitable pricing plan, I guarantee I will be leaving Square before November 1.

[KokopelliCoffee]

This hurts my small business so dramatically the calculation says I'll be paying an additional $360 per month. I'll have to look into other options. There must be a better solution for small businesses already paying hundreds of for your processing. 

[Lima]

Unfortunately i don't see  that we will get any improvements coming  after higher processing  price. 

I didn't want to switch to Clover because off their monthly charges and loyalty to Square  couple years ago.

I love the square POS, unfortunately I will be looking to switch to Clover because at least  i will get support for weight Bar-codes and even save  more money monthly. 

EBT processing will be a plus

It looks to me that square does  stuff half way and go to next project without finishing first one.