After taking headlines by storm last week with its new Starbucks deal, Square announced yesterday it will offer a new pricing option for its clients. Instead of charging customers 2.75 percent of each transaction it processes, Square will offer its services for a flat monthly fee of $275, with no processing fee.
As Bank Systems and Technology noted last week in a blog post, some in the payments field doubted that Square wool be able to turn a profit at the 2.75 percent rate processing small card transactions, like a cup of coffee or Frapuccino from Starbucks, for instance.
The new monthly flat rate comes with a limitation though: businesses on the monthly rate can only process up to $250,000 a year. Those paying the monthly rate also cannot process any transactions of more than $400 with Square.
Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio