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Let’s Compare Square to a Merchant Account! Square is highly advertised and has brand name recognition. Does that mean that it is the best payment processor for you? Let’s explore.
Square is easy to sign up. The application process is easy and simple. I agree. They pretty much take everybody, no matter how small you are or how bad your credit is, and their time to get set up is very fast. Their rates are high! Is it worth a little extra time to fill out an application with a merchant payment processor to save money over time?
Square is transparent. Yes, their rates are published and seem simple, but they are high compared to most merchant services providers. Again is it worth a little bit of time to do your due diligence and spend some time comparing rates and understanding how those rates are calculated. Is saving money worth that time at the beginning?
Their published rates are:
- 2.6% and $.10 swiped
- 2.9% and $.30 for Ecommerce
- 3.5% and $.15 for keyed in
- Those are high rates in all 3 of those categories.
Square does not give you monthly reporting. It can be very nice to get a monthly statement from your merchant processor to reconcile at the end of the month. The monthly statement tells you exactly what your rates and fees are and that is also transparent. Square has no monthly fee. That does save you money if you are a very small business doing $3000 / month or less. But if your volume is higher, then the extra $10 monthly is nothing compared to their high rates over all.
Square does not fight for you to win back chargebacks. Most merchant services providers have a help desk for chargebacks. We, at Electronic Money Company, give you guidance on how to win a chargeback. We also give you guidance on how to avoid chargebacks. Click here to learn more on that subject. How to Prevent a Chargeback! Don’t get Hoodwinked Like the Merchant in this Story! – Electronic Money Company
Sometimes Square holds some of your money in reserve. Merchant services providers don’t do that unless you are set up with a high-risk provider, which is a very, different type of setup, and not related to everyday retail, restaurant and eCommerce businesses. Square has a no license fee POS software. Sounds great up-front, but there are a great many software providers out there with software that streamlines your business in so many ways that Square does not. They are well worth the money and are worth the consideration.
We are here to help, so give us a call at 505-296-2847 with any questions, even if we are not your processor.
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