Understanding the Changes in Square's Fees

[GoulburnWestern]

I checked the square fees a couple of weeks ago (in preparation to charge back to customer) and it was 1.6%.   We set our fee to 1.6% in the dashboard.

Checked today and we have been getting charged 1.9% all along ??  

I'm confused - can someone please explain ?  The fees on the website are now different for square users prior to 30 May 2024 (higher !!!) and less for new users.  SUCKS.

[lawnbrook]

Hi @GoulburnWestern ,

How was the original payment taken?

The fees vary depending on the method.

The 1.6% fee is for in person payments using either square terminal or square register.

1.9% covers the other devices (chip reader, tap to pay etc). 

Finally 2.2% for online methods (invoices, square online).

Learn about Square’s fees | Square Support Centre - AU (squareup.com)

Perhaps the fee was collected using a method other than square terminal/square register.

Also, if your transaction volume is over 250k p/a then you may be able to negotiate a better rate.

Regards,

Bruce

[GoulburnWestern]

My point is that the loyal Square users (signed up prior to 30 May 2024) are penalised whereas the new customers get the 1.6% rate regardless of the device used.

• The 1.6% card present rate applies for Square Sellers who sign up on or after 30 May 2024, or who signed up prior to this date and subscribed to a paid software plan that offers a 1.6% processing rate. 

• The rate of 1.9% will apply for all other Square Sellers who signed up prior to 30 May 2024 when using Square Reader, Square Stand or Tap to Pay, as listed in the Square Fee Schedule above.

[lawnbrook]

Right!

I completely missed that, and like you am struggling to see how it can be justified.

I'm not sure if there's some other changes as of this date (perhap increased subscriptions).

I'd suggest a call to support asking why the difference?

I'm going to ask via my square contacts and see if the same is happening globally.

Bruce

[Laurie_ · Accepted solution]

Hi @GoulburnWestern and @lawnbrook,

Thank you for reaching out to us. 

We have Sellers on many different pricing structures, based on different elements of their business. Businesses are welcome to call for a price review.

You can contact our team at 1800 760 137, or reach out to us via online chat (Monday to Friday, 9 AM - 5 PM Melbourne time).

[karmacranes]

Well, it has been a ride that's for sure square. 

but after discovering this gem of information I'm not sure I should support you and your services and encourage all to do their homework/research.

New users are allowed to charge 1.6 % on sales, but the older users who have been here for a while are locked into 1.9% on card fee surcharges.  so you reward new users but people who have been here a while who;ve spent money on product and fees get zilch

after speaking with someone in your service team who can't read and see this as an issue and the way I've been treated I'm looking into other options for my business.

[Laurie_]

Hi @karmacranes, thank you for reaching out to us.

I'm going to merge your post with an existing thread where we are already discussing this topic. Please refer to the best answer for more information.

[lashesaustralia]

In exactly the same boat and quite shocked at the concept as well as how it has been communicated. .

So I just confirmed, May was the first month we started charging a surcharge. So it was mid way through this month that like you, I looked up our fees to confirm the right amount for the cost of acceptance. It was not presented as "1.6%* - *for future customers as of the 30th of this month. Current customers factor in an additional 18% forever". I know I made quite sure the fee information applied to me and it was presented just how it is now with gigantic font. 

An interesting take on "Grandfathering" Square. This is when most businesses honour their long time, loyal customers with the old lower rates of the past. Lets see how applying a higher rate to them indefinitely plays out for you. Save me the copy and paste response about a range of different fees applying. 

[Laurie_]

Thank you for sharing your feedback with us, @lashesaustralia. 

I see that our Support Team has reached out to you directly for a pricing review since your post.

If you have any further questions after your call, feel free to let me know!

[DougDoug]

This is very odd. I just discovered the same thing when looking into our fees an then found this thread. It seems inredibly strange for Square to be punishing loyal long-time users and rewarding those only just adopting. I thought I must have been reading the fees incorrectly. This is very very baffling. I guess I'll just have to cancel my old account and start a new one. Are there any benefits to keeping the old account? I can't seem to find any.

[Laurie_]

@DougDoug, to clarify, existing Sellers do not need to deactivate their accounts or sign up for a new Square account to receive a lower rate. We recommend contacting our Support Team directly to have your pricing reviewed to ensure you're on the best possible rate.