Why You Should Never Pay a Flat Transaction Fee

2.9% and 10 cents per transaction. This is the flat rate for PayPal (Square 2.75% 15 cents per transaction). I see it time and time again. People switching over to Square and PayPal to avoid those monthly merchant fees. Why…

Merchant Services
Swiping card with the Square reader

Before I begin let me tell you this. Over 50% of all transactions today are made with debit cards. The base rate of a debit card will run you 1.5 – 2.0%. If you are with PayPal you will pay 2.9% no matter what card a customer swipes with. You would think that this is a no-brainer. Clearly you need to switch to a real processor to save some money. People are not doing that! They would rather lose out on thousands a month to see a flat constant rate on their statements.

So, why do people still not use a proper processor? People assume that PayPal and Square are the only companies offering mobile payments. This is not the case. Almost every processor will set you up on an android or IOS device. You will instantly be saving money every month. Yes there are monthly fees and yes there is a time when PayPal and Square are better for your business.

Merchant Services
Transaction made with PayPal Mobile Reader

They both allow easier access to accept credit cards with less paperwork. However, in return you pay almost double. If you are a legitimate business doing over $4,000 a month in credit card transactions, the Square and PayPal is not for you. You will end up saving hundreds of dollars per month by using a real processor even after all the monthly fees. To see how much you can save sign up for a free side by side analysis with us.