Who Should Use SQUARE for Credit Card Processing?I’ve had a lot of people ask me
about SQUARE. They’re not usually sure if SQUARE is a direct competitor
to my company. There are only two things that you probably need to
know; structure and fees.
Regarding structure, SQUARE is not a
merchant account service. Rather, they accumulate a large number of
businesses and handle them as a “third-party merchant account”. Getting
an account with them is easy – but they can terminate service even
SQUARE may seem appealing with their easy to understand fee structure and
the fact that there is no monthly fee. But Beware! The fees that they charge are
considerably higher than you would pay with a true merchant account.
I’ve run all the numbers, and here’s what you need to know:
There are two scenarios that justify using SQUARE for processing. The first is when the
average sale is below $10. Think food truck or quick service restaurant. The second is when
the average monthly sales are less than $3,000.
Besides the financials, SQUARE is not known for customer service or easy help with
issues that arise with electronic payments. You don’t have a representative assigned to
your business that understands what you do and fits the best solution to you.
In summary, SQUARE is a viable solution for a business that wants to accept electronic payments,
but does a small monthly volume of sales.
If you have any questions about merchant services, please feel free to contact me directly.