After about a year my bank finally settled on Clover Go for the new chip card processor. They are exceptionally good on service and is why I have never considered Square (They sent a personal rep down from Denver to resolve a problem - 45 minute drive one way - when I first got started several years ago). Anyways, there was an article in the Denver Post about the increase in fees on using the new chip readers, so I checked my statement. SHOCKER: it's now 15% or total sales. While most are less than $0.40 and some are only $0.01 the big kahunas are: "Transarmor monthly fee $5.00, Mobile Service Fee $6.00, PCI compliance fee $3.00 and account fee $13.76. It's a cost of business that will simple get passed on with higher prices next time I adjust prices. Leather prices have dipped so I still have a bit of a grin over last round of price increases. It's sort of like a flock of vultures feeding on a zebra with each taking their bite.
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For phone orders with the square, I do need the card number, the expiration date, the Zip code and the CVV. For those sales I'm charged 3.75%. Period.
I had a full blown merchant account with 1st National and I was being charged different fees depending on the card. One fee for a regular card, a higher fee for a rewards card etc, and $28 per month in processing fees. My wireless terminal died just as my 3 year contract was up and I decided to try the Square.
I can't believe how much money per month I'm saving. And I don't have to go through answering "YES" to every question on the PCI renewal test.
This is the whole tamale and includes MC, Visa, Discover fees and the bank handling fees. My device fee is 3%. I think it would be beneficial to look at your total fees per sale not just device fee. The big problem I still have with square is PCI compliance. I have to take an annual written test for this and I don't think Square does. I don't think my business insurance covers mishandled client card data but the bank does with this compliance. Don't ask me more, I just jump through their test hoops and get back to work.
15% of sales