Square’s Pricing Shift Raises Costs for Smaller Transactions
A customer uses Square device while making a credit card payment in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Jack Dorsey’s payments company, Square Inc., changed its pricing model, adding costs for smaller transactions in a shift away from the flat rate it used to charge.
Rather than assess a 2.75% fee on in-store transactions, Square will now charge 2.6% plus a 10-cent fee, the company said Tuesday in a blog post announcing the change. The change means the fee on a $10 transaction rises to 36 cents from 27.5 cents. Costs for transactions starting at roughly $67 will go down.