Last week, Square announced a partnership with Starbucks to provide back-end payment processing and CRM for the coffee mega-company. Today, Square brings news of the other end of the business spectrum. Small businesses who make less than $250,000 per year will no longer have to pay the standard 2.75 percent per swipe processing fee (though they can still opt for this) if they pay one flat rate, currently set at $275 monthly.
If a small businesses chooses the flat rate option, they’ll essentially end up paying 1.3 percent per swipe – a significant savings if they meet the criteria. IF the business goes over the line, they’ll be charged the standard per-swipe rate.
This is Square making sure that it can have as many users as possible, from super corporate giants to small mom and pop shops with a bit of tech savvy.