Mobile payments service Square has launched new $275 per month flat-rate pricing for small businesses, a move that could save those merchants a lot of dough on credit card transactions.
Square recently made headlines when it agreed to handle all of Starbucks’ payment processing, with Starbucks investing $25 million in Square. Today’s new pricing option is smaller news, but it will affect many more companies.
By offering a single monthly fee and 0 percent processing, this option could give more small businesses the motivation they need to start using Square for payments. The offer stands for merchants who process up to $250,000 in credit card payments per year. If a business goes over $250,000, then all transactions after that will be charged the standard 2.75 percent rate.
“We are giving merchants affordable, predictable pricing,” said Square CEO Jack Dorsey in a statement. “With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”
San Francisco-based Square has raised $141 million in funding thus far, and it is rumored to be working on a massive $200 million round, which would value it at $3.25 billion.
Photo credit: Square
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