In 2009, Square took the credit card processing industry by storm by offering an affordable, and easy to use payment processor for businesses. Their straightforward pricing model can be perfect for certain businesses looking to accept credit cards. Learn more about if Square is a good fit for your business.
Ideal customer:
+ Businesses trying to build volume and potentially transition into a processor with better rates
+ Merchants in a B2B business
+ Businesses that run a large number of keyed in transactions
Avoid Square if Your Business:
1. Has high priced ticket items
- While the Square website only lists one official transaction limit for merchants ($50,000 per month), businesses with higher volume than usual can have their accounts flagged or frozen
- Square recommends keeping individual transactions below $3000, but some merchants have had their funds withheld on transactions of just a few hundred dollars
2. Has a high amount of chargebacks
- Square does not do any underwriting of businesses unless something triggers an investigation (i.e. excessive chargebacks, unexpected increase in sales, etc.) and can:
a) establish new processing fees
b) create a reserve in an amount reasonably determined... to cover anticipated chargebacks and related fees
c) delay payouts
d) freeze or terminate your account
Square is not the only payment processor that offers flexibility
We represent several payment processors that offer a mobile pay option with competitive rates
If you believe your business will be better off using a different processor than Square, call Precision Payment Systems at 504-434-0998 and we will find the processor that is the perfect fit for your business.
