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When should you consider setting up your credit card processing with Square versus a Merchant Services Company?
Generally, if your revenue from credit cards is $5000 or less, then it is cheaper to use Square. If your business is more substantial, then you will probably want your own merchant account with a merchant services processor. Why?
Square is cheap and easy to set up. They have no monthly fees and no PCI fees. You can sign up online without ever talking to someone. But if you want reconciliation reports on your payment deposits plus customer service and support for your terminal or POS system, then you are going to want to talk to a merchant services provider. You will have to pay a monthly fee and PCI fees in addition to the rates and transaction fees. But if your volume is $20,000 per month or $40,000 per month and higher, then the monthly and PCI fees are insignificant to the savings on the rates and transaction fees with a merchant services provider.
Square’s model is to acquire lots of merchants with as little overhead as possible. A merchant services provider has people on staff to support merchants’ questions, reconciliations and hardware. You may not need support very often, but when you have a chargeback or a glitch with your terminal or questions about your monthly merchant services statement, it is well worth a few extra bucks to be able to talk to a live person and get your concerns answered. By the way, if a customer issues a chargeback and you are with Square, you just lose the product and the money.
Give us a call if you have questions about setting up your credit card processing with Square versus a Merchant Services Company at 505-362-0837.
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