Go Back   FlyerTalk Forums > Miles&Points > Credit, Debit and Prepaid Card Programs > Manufactured Spending
Sign in using an external account

Reply
 
Thread Tools Search this Thread
Old Aug 17, 12, 10:42 am   #1
 
Join Date: Jul 2006
Location: Garfield Beach
Posts: 4,154
New Possibility with Square for the VERY Aggressive

Square has introduced a new pricing option for accepting credit card charges: a flat fee of $275/month for users charging less than $250,000/year.

https://squareup.com/pricing/per-month

That represents 1.32% if you are able to push $250K through the system in one year. You can also make it work on a monthly basis on the same terms.

I, for one, would love to buy SPG points at 1.32 cents each, and also have no problem meeting sign-up bonuses via spending.

But I won't be doing it - here are the very large obstacles I see.

-The terms of Square. This is the single biggest issue, and enough to scuttle the deal for me.

-$400 maximum charge per transaction.

-Potential tax reporting issues.

-Potential scrutiny from American Express (or any card issuer involved).

-Potential time delay to get access to your money if you immediately start charging large volumes on a new Square account.

For some, though, this could be a possibility. And if you have a business that accepts credit cards in person and gets close to $250k/year and your charges are all under $400 each, then it's a slam dunk - you should ditch your merchant account and move to this.

This is one for the super-aggressive. We've got some around here.
josephstern is offline   Reply With Quote
Old Aug 17, 12, 11:49 am   #2
 
Join Date: Aug 2011
Location: WAS
Programs: SPG Plat, HH Gold, Kayaker/Freeloader on UA, AA, US, DL, BA
Posts: 1,117
If not for the $400/charge limit, I'd definitely be interested for legit business purposes.

That said, for someone super aggressive with a 2% cash back card (in someone else's name obviously), it could get fun. It's an interesting business model not to price premium cards higher because the right business could cause them to lose money here. Through BoA right now, I pay 1.8 or so on regular cards, but premium cards like AX, Visa Signature, etc are 2 point something. I guess they're counting on a mix of debit and other non-premium cards...

Quote:
Originally Posted by josephstern View Post
Square has introduced a new pricing option for accepting credit card charges: a flat fee of $275/month for users charging less than $250,000/year.

Last edited by mia; Aug 17, 12 at 11:52 am.. Reason: Prune quotation
DC777Fan is offline   Reply With Quote
Old Aug 17, 12, 11:54 am   #3
 
Join Date: Jul 2006
Location: Garfield Beach
Posts: 4,154
Quote:
Originally Posted by DC777Fan View Post
If not for the $400/charge limit, I'd definitely be interested for legit business purposes.

That said, for someone super aggressive with a 2% cash back card (in someone else's name obviously), it could get fun. It's an interesting business model not to price premium cards higher because the right business could cause them to lose money here. Through BoA right now, I pay 1.8 or so on regular cards, but premium cards like AX, Visa Signature, etc are 2 point something. I guess they're counting on a mix of debit and other non-premium cards...
Counting on a mix of cards, for one, and preparing to potentially lose money to gain market share also, I'm sure.

I'm a merchant also, but I'm online, and some cards can get above the 3.5% range. I can't swipe, so this could never work for me.

But another legitimate angle for a business could be to selectively use this for a portion of their charges. Anything under $400, up to $250K/year, when it's clearly not a debit card - or even debit cards if they may not hit the $250K.

Like all good shiny new internet companies, they don't mind losing money to get customers. It'll make their numbers look better when they go public and cash out.
josephstern is offline   Reply With Quote
Old Aug 17, 12, 1:44 pm   #4
 
Join Date: Feb 2010
Location: CLE
Programs: UA Gold, SPG Gold, Hilton Diamond, Hyatt Plat, Hertz PC
Posts: 5,136
Quote:
Originally Posted by josephstern View Post
Square has introduced a new pricing option for accepting credit card charges: a flat fee of $275/month for users charging less than $250,000/year.

https://squareup.com/pricing/per-month

That represents 1.32% if you are able to push $250K through the system in one year. You can also make it work on a monthly basis on the same terms.

I, for one, would love to buy SPG points at 1.32 cents each, and also have no problem meeting sign-up bonuses via spending.

But I won't be doing it - here are the very large obstacles I see.

-The terms of Square. This is the single biggest issue, and enough to scuttle the deal for me.

-$400 maximum charge per transaction.

-Potential tax reporting issues.

-Potential scrutiny from American Express (or any card issuer involved).

-Potential time delay to get access to your money if you immediately start charging large volumes on a new Square account.

For some, though, this could be a possibility. And if you have a business that accepts credit cards in person and gets close to $250k/year and your charges are all under $400 each, then it's a slam dunk - you should ditch your merchant account and move to this.

This is one for the super-aggressive. We've got some around here.
For the uber-aggressive: Why not push the whole $250k in one month? All it would take is an aggressive cash recycle back to the card(s) - after all that would only be 625 swipes The only interruption I see here is the frequent discussions with the Fraud folks at both the CC issuer(s) and Square.

My Square reader is now burning a hole in my sock drawer. But first I'll need to talk to somebody who speaks fluent tax code . . .
Surface Interval is online now   Reply With Quote
Old Aug 17, 12, 2:03 pm   #5
 
Join Date: Jan 2012
Posts: 663
Here is a business opportunity for the bloggers, would increase seminar attendance for sure.
dcpilgrim is offline   Reply With Quote
Old Aug 17, 12, 2:04 pm   #6
 
Join Date: Feb 2010
Location: CLE
Programs: UA Gold, SPG Gold, Hilton Diamond, Hyatt Plat, Hertz PC
Posts: 5,136
Quote:
Originally Posted by dcpilgrim View Post
Here is a business opportunity for the bloggers, would increase seminar attendance for sure.
+1
Surface Interval is online now   Reply With Quote
Old Aug 17, 12, 2:38 pm   #7
 
Join Date: Jul 2006
Location: Garfield Beach
Posts: 4,154
Yes! Finally! An idea on FT that we all hope bloggers will devote copious resources to!

Glad I could help them out.
josephstern is offline   Reply With Quote
Old Aug 17, 12, 4:17 pm   #8
 
Join Date: Sep 2009
Posts: 1,712
Quote:
Originally Posted by josephstern View Post
Yes! Finally! An idea on FT that we all hope bloggers will devote copious resources to!

Glad I could help them out.
If you want to help them out they will need a bigger SPOON!
QL_714 is offline   Reply With Quote
Old Aug 17, 12, 4:42 pm   #9
 
Join Date: Apr 2012
Location: BDL, BOS
Posts: 1,126
I'm confused. Isn't square just a shape like a circle? Can someone make me a step-by-step with large colorful screenshots? Do you have a referral link?
gloreglabert is offline   Reply With Quote
Old Aug 17, 12, 5:26 pm   #10
 
Join Date: Jan 2009
Location: IND
Programs: UA WN
Posts: 141
Quote:
Originally Posted by gloreglabert View Post
I'm confused. Isn't square just a shape like a circle? Can someone make me a step-by-step with large colorful screenshots? Do you have a referral link?
Here ya go....pretty pictures and all

https://squareup.com/
Xelint is offline   Reply With Quote
Old Aug 17, 12, 7:13 pm   #11
 
Join Date: Dec 2008
Location: NYC
Posts: 2,241
Quote:
Originally Posted by soccerguy985 View Post
You should send it over to MMS.
LOL. You forgot the big arrows and red circles. The guys who read his blog must be real idiots - it's so hard to find and click the "redeem award" link and follow the instructions without MMS' arrows and diagrams.

Out of curiosity, can one of you guys who have businesses and accept cards list the costs for some common cards (Sapphire, SPG, Amex Gold, etc.)?

Last edited by mia; Aug 18, 12 at 4:51 am.. Reason: Prune quotation
abcx is online now   Reply With Quote
Old Aug 17, 12, 9:37 pm   #12
 
Join Date: Jul 2009
Location: ORD & MKE
Programs: AA EXP; Turkish Airlines Elite; Flying Blue Plat; Priority Club Plat; Hyatt Diamond; Starwd/hilt GLD
Posts: 71
this is interesting... I saw a similar discussion on fatwallet, and was going to post here,,,, but what are the odds.... someone already posted this one

http://www.fatwallet.com/forums/finance/1213231/
yousavvy is offline   Reply With Quote
Old Aug 18, 12, 6:28 am   #13
 
Join Date: Mar 2005
Posts: 8,099
Quote:
Originally Posted by yousavvy View Post
this is interesting... I saw a similar discussion on fatwallet, and was going to post here,,,, but what are the odds.... someone already posted this one

http://www.fatwallet.com/forums/finance/1213231/
Surprised it took 2 days for the subject to be discussed on FT.
sonofzeus is offline   Reply With Quote
Old Aug 18, 12, 6:29 am   #14
 
Join Date: Sep 2009
Posts: 1,712
Quote:
Originally Posted by yousavvy View Post
this is interesting... I saw a similar discussion on fatwallet, and was going to post here,,,, but what are the odds.... someone already posted this one

http://www.fatwallet.com/forums/finance/1213231/
The nice thing about FWF is bloggers donít hang out there. The deals they post you have to be able to understand basic math.
QL_714 is offline   Reply With Quote
Old Aug 18, 12, 8:34 am   #15
 
Join Date: Jul 2006
Location: Garfield Beach
Posts: 4,154
Quote:
Originally Posted by abcx View Post
...
Out of curiosity, can one of you guys who have businesses and accept cards list the costs for some common cards (Sapphire, SPG, Amex Gold, etc.)?
It's amazingly not easy to do that. I think the card acceptance industry likes to keep vendors in the dark. They all tell you their rates for basic cards, but there's no way to plug in a six digit prefix and pull back a rate, at least no way I know of.

I can dig through old statements and look up cards and calculate it out to some extent, although that level of detail is hard to get to.

If they made it easy, then merchants, armed with information (scary word to this industry) could be preferential about giving discounts for certain cards. Show up with your Sapphire or Amex Plat, no discount. Bring me a plain-vanilla BofA Visa, fine.
josephstern is offline   Reply With Quote
 
 
Reply

Bookmarks


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off
Forum Jump


All times are GMT -6. The time now is 1:07 pm.




SEO by vBSEO ©2011, Crawlability, Inc.