Anyone have experience using square?  That 2.75% rate seems awfully, and wonderfully, low.  We're paying an effective rate of about 4.29% this year on plastic so the business side of it as well as the technology side seem great.  I feel like there is something they are not saying though.

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There have been many discussions regarding square here recently. Try using the search bar in the upper right corner.

Lots of folks are using it with no reported issues.

Here's an "issue" with Square I haven't heard discussed. Traditional cc processing will hit your bank in either 2 or 3 business days depending on you cc merchant. AND if you don't close your batch at end of day with traditional it'll just sit there and not even enter the deposit que until you do close a batch. (yes I know if you're using a POS with integrated cc the POS will usually close the batch automatically nightly for you.)

The "issue" is this: with Square all transactions processed by 5pm M-Thurs and Fri by 1pm PST are IN YOUR BANK the next day. Nice issue :-) (Transactions after 1pm Fri, Sat & Sun or in the bank Monday.) Like clockwork since switching June 2012...

Intuit has a pretty good one too. These merchant services are so worth it. But on the flip side, they aren't anywhere near as fast as using a merchant service machine. The real benefit from these programs comes from the alternate pos that can sometimes accompany them.

We did a year-long study on Square and how to implement it before actually making the full switch a year ago. Like you, our effective rate was between 4-6%, depending on the month (our bank rate was 1.57%). Square is 2.75% flat (it's a little higher if you key the card into the device instead of swiping) and it's been flat the whole time. Square auto-batches around 3pm and the funds are available in our bank account the next morning.

Online use is easy and cloud-based, so you can manage the account from anywhere. And their app is getting better and more robust as a POS platform (though we use it strictly as a CC machine).

As Nathan said, if you're processing over 10K in transactions per month, it's better to go with the $275 flat rate. But if you're doing over $25K a month or $250K per year, then your traditional merchant account might work out better (though you should review and do the math yourself, if you're in that position).

Jay, thank for the great comments. One question, from your last paragraph -- why might it be better to use "my traditional merchant account"?  Do you mean my current processor, or utilizing square but not the flat $275/month?  Sorry to ask for clarification.

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