[phjohnst]

Don't forget the up-front fee of $275, so max savings are more like $300. Break-even is $10k per month.

It's a nice idea, though I don't know how many companies are in the $10k-$21k/month revenue bucket that would see a benefit. All companies processing over $250k per year can save a max of $300 per month by signing up to the fixed rate plan and then paying the normal fee thereafter.

The new fee band gives savings to those processing more than ~$10k/month, but provides no savings for smaller users.

[charlesju]

It's not strictly for the band of $10k to $21k per month. It's anyone that makes more than $10k a month because additional swipes after $21k are the same as the opportunity cost.

This is a great deal for any company making more than $10k a day, or about $500 assuming 20 working days a month. It's starting to sound like a decent deal that should appeal to a lot of small businesses.

[sharth]

Unless they can find cheaper than 2.75% elsewhere.

[rdl]

Which is basically anyone for Visa/MC, and even some people for Amex. Once you're reliably processing $20k/mo, your options for merchant accounts expand a fair bit.

I think what this does is retain existing Square merchants a bit longer -- ones who grew from $0 to $8k or so, are now evaluating real merchant accounts. Inertia, other advantages of Square (PWS), etc. might keep those merchants another year or two, getting them up to around $20k/mo revenue, and then Square might come out with something new for them (a Square-specific payment instrument? Pre-loaded cards using ACH per merchant or across Square with 0% fee?)