“For 62 years, merchants have suffered complicated, expensive processing fees. Square is the first company to rethink electronic payment pricing with the merchant in mind. We are giving merchants affordable, predictable pricing, ” said Square CEO and co-founder Jack Dorsey. “With one monthly price, merchants know that the sales they’ve processed in a day is the same amount deposited in the bank.”
Doing the math, Square's new flat fee pricing will save fees for merchants who do over $100,000 annually in swipe payment volume as compared to its standard 2.75%/swipe fee. For example, a merchant doing $200,000/year will have an effective discount rate of 1.375%. Manually-entered card transactions are not included in the flat fee - they continue to be priced at 3.5% + 15 cents per transactions.