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Square Offers New Monthly Price Rate Following Starbucks Deal

Square introduces a new pricing plan for its clients after last weeks blockbuster deal with Starbucks.

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

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