updated 05:23 pm EST, Fri November 8, 2013
Move affects only the highest dollar volume processors
Payment transaction facilitator for mobile devices Square is discontinuing its monthly flat-fee pricing in February of 2014. On January 2, subscribers with a monthly fee will be billed, which will be the last monthly payment. Square is reverting its pricing for al users to a per-swipe fee, dependent on contract with the payment processor.
"We launched a monthly flat rate to offer flexibility in pricing for larger businesses," a Square spokesperson told The Next Web. "Over the past year we heard from many of our customers that caps and limits in the program were inhibiting growth - at a certain point, rates went back up the more you sold. We want our pricing to be simple: no more limits or complicated monthly caps at all. Just one low, flat per-swipe rate."
Square's standard rates are 2.75 percent per swipe. Manually entered transactions are 3.5 percent, plus $0.15. Square is able to negotiate better deals for businesses with higher volumes.