[encoderer]

Businesses don't get to negotiate with Visa and Mastercard. They negotiate with banks. And banks negotiate with large volume customers. That's why McDonald's can afford to take credit for a $1 ice cream cone without losing 33% of it to the card company.

Square has a lot of options in the way they process transactions, and they have a very high volume (now more so than ever)

[andyakb]

...right, so why cant starbucks negotiate with banks, much like mcdonalds does?

[notatoad]

because the parent is wrong, McDs doesn't negotiate with the banks either. they negotiate with a payment gateway provider. which is what Square is.