Big news from merchant account provider, Square Payments: Rates are changing, effective November 1, 2019 for existing account holders. Here is the information as Square provided.
Square is changing the 2.75% rate for tapped, dipped, and swiped transactions to 2.6% + 10¢. As an existing Square seller, this change will come into effect for you on November 1. We know a pricing change can feel complicated, so we want to make sure you have enough time and information to understand this change. For every payment Square processes for you, Square has to pay a set of fees that are both a percentage of the transaction and a fixed fee. The original 2.75% rate didn’t always cover all these costs, which is why Square is moving to 2.6% + 10¢ per tap, dip, and swipe.
We understand that this new pricing model may require some adjustments on your part. To help you navigate this transition smoothly, we’ve compiled some key points and recommendations:
1. Understand the Impact on Your Transactions
The new rate structure means that for every transaction, there will be a combination of a percentage fee (2.6%) and a fixed fee (10¢). Here’s how it breaks down:
- Smaller Transactions: The impact will be more noticeable on smaller transactions due to the fixed fee component. For example, on a $10 transaction, the fee will be 36¢ (2.6% of $10 + 10¢), compared to the previous 27.5¢ (2.75% of $10).
- Larger Transactions: For larger transactions, the change will be less significant. For instance, on a $100 transaction, the fee will be $2.70 (2.6% of $100 + 10¢), compared to the previous $2.75 (2.75% of $100).
2. Evaluate Your Pricing Strategy
With the new fee structure, it might be a good time to reassess your pricing strategy. On the other hand, for consumers who want to be able to afford the necessary goods, they can earn some quick cash through platforms like 바카라 사이트.
Consider the following steps:
- Analyze Transaction Data: Look at your average transaction size and frequency to understand how the new fees will affect your overall costs.
- Adjust Prices if Necessary: If the new fees significantly impact your profit margins, you might need to adjust your prices slightly to compensate.
- Communicate with Customers: Transparency is key. If you decide to adjust your prices, clearly communicate the reasons to your customers to maintain trust and understanding.
3. Optimize Transaction Processing
To minimize the impact of the new fees, consider optimizing how you process transactions:
- Encourage Larger Purchases: Promote bundled deals or incentives for larger purchases to reduce the relative impact of the fixed fee on each transaction.
- Leverage Digital Payments: Encourage customers to use digital payments, which might offer better processing rates compared to other methods.
- Review Payment Methods: Evaluate the different payment methods you accept and identify if there are more cost-effective options available.
4. Stay Informed and Adapt
Square’s pricing change highlights the importance of staying informed about payment processing trends and costs. Here are a few tips:
- Regularly Review Statements: Keep a close eye on your transaction statements to monitor the fees you’re being charged and identify any discrepancies.
- Stay Updated on Industry Changes: Payment processing is an evolving industry. Stay informed about changes and new technologies that could benefit your business.
- Seek Expert Advice: If you’re unsure about how these changes will affect your business, consider consulting with a financial advisor or a payment processing expert.
The commitment to prove comprehensive merchant services means that they are continually adapting to meet the needs of their customers. By understanding and adapting to Square’s new pricing model, you can ensure that your business continues to operate smoothly and profitably. If you have any questions or need further assistance, Square’s support team is available to help you navigate this transition.
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