Important Question: What about open invoices? How do these platforms handle open invoices? For example, if a client pays 50% down at time of sale and the balance upon completion of project a week later, how would this be handled? I have a web development company, we make websites for clients and manage their newsletter campaigns. When one of our sales reps meets with a client, we would like to take a 50% deposit, then collect the balance once the work is done (about a week to 2 weeks later). I know there is no “partial payment” option on the PayPal platform, so… would you just make 2 invoices – one for the deposit, one for the balance? But then: that would never show your open invoices or accounts receivable. This must be an important issue facing many companies. I’m so surprised it’s been overlooked.
They took out their percent right away. I manually put credit card in but can’t understand why I would have to wait this long. They are slow and unresponsive to email support. When dealing with finances you should never have email support only.
It is standard practice to withhold the entire transaction(s), including sales tax collected, when funds are held in reserve. This is because the reserve is held in order to protect the processor from loss in case of future chargebacks. If a chargeback occurs, the tax will also have to be refunded. Therefore they hold the tax to ensure they do not have to refund it out of pocket should a chargeback occur. Again, I can’t attest to this from a lawyer’s point of view, but this is how it is done across the board, not just with Square.
Debit cards with PINs are lower risk than credit cards, so they typically have a lower interchange rate. And rewards cards (travel, triple points, etc.) and business cards typically have have higher interchange rates.
i hve used Square for several months and have had no problems. In Florida we have seasonal sales from November thru April. With the old companies we had to pay fees each month we were not doing business that amounted to about $70 per month for a wireless terminal. By the time we paid wireless access fees, batch fees, non-qualified card rates, high rates for American Express, etc; we were paying much more than the quoted rate of 1.69%. The 2.75% across the board rate for swiped transactions from Square computes as a better deal and since we sell at Craft Shows it is much more convienient than carrying a bulky wireless machine. Also, since the customer is right in front of us swiping a card is not a problem. We also get our money deposited so it is normally available the next buisiness day for transactions done before 3 pm est.
All of the  credit cards in your wallet have an interchange rate attached to them.  Square is paying that rate, but they are charging you 2.75% whether the actual interchange rate is higher or lower.  When I look in my own wallet I see 2 cards.  My Bank of America debit card has a rate of .05% and $0.22 and my Amazon Rewards card is 1.65% and $0.10.  If I purchase something with my Amazon card and the merchant is using Square, the merchant pays 2.75% and Square keeps the difference (just over 1%).  Reading through Square’s earnings report, they said that their average profit per transaction was 1.01%, so the example above sounds about average.
Square is definitely on the right track with providing an easy credit card processing solution with no long-term commitments and no monthly fees. The service is proving to have some major drawbacks for higher volume merchants, though, because of murky fund holding policies and poor customer support. It appears that Square is best suited for individuals who have an occasional need to accept a credit card payment, such as babysitters and flea market vendors. The service does not appear to be a good fit for merchants that either have a high volume of credit card sales or that sell high-ticket items.
I went to their website and is not even a phone number to call. I just want to find why should i switch to Square from my merchantaccount with intuit. Square will go down the drain like ETSY or other ‘ nothing special to offer’ companies. Square will not succeed as a company.
Yes their customer service sucks, scratch that, pretty much non existent. No live people, no phone number and the one that did work was shut down, no way to void a transaction, and no real way to deal with charge backs. Emailing seems futile and can be time consuming something I am sure none of your customers want especially mine.
Molly K. McLaughlin is a New York-based writer and editor with more than a decade of experience covering technology. She has tested and reviewed all sorts of software, mobile apps, and gadgets. Before launching her freelance business, she was an editor at PC Magazine, covering consumer electronics, followed by a stint at, a revie… See Full Bio
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  1. Take Kristin Maddox, for example. The owner of Red Chair Salon in San Francisco once shared with me how she switched to Square after getting fed up with her traditional credit card terminal provider charging exorbitant fees. She also talked about time wasted on the phone with her pre-Square provider. Jaber seconded that complaint, telling us that he once used a manual payment system which required his team to physically scroll through the receipts to reconcile transactions — tedious work to say the least. What’s more, he said, “There was a system that we used before Square and at least twice a day, we were on the phone with support (e.g. the screen was frozen, items kept disappearing, etc.). Every day, every location. In our home office, there were collectively 10 hours regularly spent on POS issues. Today, it’s maybe an hour a week. Square is focused on the team, making it easy for them to spend more time with customers.”
    Again…if you need a complete receipt, ask. You have the same view of the Square application as the vendor, since you have to sign the bloody thing. If the information is complete, ask them to fill it in.
    About the $800 two transactions that you have yet to be paid for – did you swipe the cards for those transactions? Or, were those transactions card-not-present transactions? I’m looking into Square and things like this will determine if I go with them or not.

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