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

[HeatherSweetD]

This hurts my business.

[HeatherSweetD]

I also use square payroll but I'm considering switching to another provider.  This is robbery.  You cant just surprise a customer of nearly a decade with an increase this high.  Where was the warning?  

[RandiJ42]

We will also likely be switching. 

[HeatherSweetD]

Does this response sound like they really care if they retain our business?  

Re: A Change to our Tap, Dip, and Swipe Rate

"Hi Heather, thank you for your message. I'm afraid I don't have information about a tiered pricing scale, but I will share your feedback about this change and I'll share your interest in a different pricing structure with the right team here. 

I understand that you might be reviewing your options, but if you did choose to leave Square we would be sorry to see you go. "

[alishaskitchen]

I have been with Square for nearly 10 years because they were the best pricing out there. 2.75% and done. Simple.  Now you are changing to be like everyone else that I hate! 2.6%+.10 per transaction!  My fees will increase by about $100 per month! That's a lot for a small business. Anyone know who does the flat rate? Im looking for a new merchant. ugh!

[CoffeeShop1]

Switch to PayPal for merchant services! They only charge a flat rate of 2.7%.

[kristylam59]

Square better come up better solution to compete with that, otherwise i am switching to Paypal too!

[alishaskitchen]

I looked into paypal as well but thought I saw a $69 monthly fee??

[sodaburst]

Did you switch or were you with them already?  This sounds like a good option for me and my business.  If you did switch, how is it going?  Thx for any info you can provide!!

[RoadkillGrill]

Bye Bye Square... I knew there was a reason I dusted off my Paypal reader and stated using it last week.

[mat]

Thanks. Nothing like starting the day with a 40+% fee increase.

[mat]

how is one supposed to get used to paying you guys 40% more money? 

[Baheston]

This is almost a 50% increase for someone like us with small ticket charges. This type of increase is indicative of a company with some issues. 

This will force companies like us to search out alternatives. 

Maybe tiered pricing model could be more acceptable?

[Frank828]

The email says we'll be paying nearly 300 a month extra.

That's crazy.

[mattramZ]

Will be leaving Square.  When we had Shop Keep, we had a 5 cent swipe rate plus percentage.  We switched to Square because the swipe rate was smaller on coffee purchases (we're a coffee shop like thousands of Square's customers).  We pay a lot more per month for Square's marketing, loyalty and gift cards already, but it was worth it for the swipe rates.  Square will hold on to customers for a while who are locked in with some hardware, but it won't take long to see the customer base flatline and decline.  This is a massive increase in a short amount of time.  Terrible.  

[Helen]

We'd be very sorry to see you go @mattramZ, but I appreciate where you're coming from. I've just sent you a private message so we can see how this impacts your business. 

[HeatherSweetD]

I'd like to talk to you.  Please send me a message.

[Helen]

I just sent you a message @HeatherSweetD. 

[JonBix]

I'm gonna need to be contacted as well, Helen.  This is an unacceptable rate increase.

[Helen]

I'm sorry to hear that @JonBix. I've just started an email case for you with our CS team, and I've asked them to include your customer code so you can give us a call if needed.