Tuesday, April 14th, 2020

Square Charges New Fees for Quick Access to Funds

If you are the business owner who uses Square, then familiarizing yourself with these changes is a must-do!

On Jan 7, 2020, the payments provider announced that it would begin charging fees for retailers who transfer Square finances to their banking account.

The new rates were to be effective as of Feb 7, 2020. And since then, merchants have been paying 1.5 percent for every immediate and same-day Square-to-Account transfers.

What does That Mean for Retailers?

Policy changes are not uncommon in the payments ecosystem, and when they do, the result is often a two-sided effect. Recently, PayPal decided it would hold back ALL the transactions fees for any refunds— a move that stirred mixed reactions among merchants.

And now, Square has brought quicker access to funds—but is their offer really a goldmine as it seems?

For merchants, perhaps the big catch is the quick to immediate access to funds. This is an advantage, especially if you want to maintain steady cash flow.

Still, this comes at an extra cost to your business— which most merchants can’t ignore

Your Options: To Pay or to Wait

But this change in policy does not your hands are tied. You can choose between these two options;

(1) To pay the per-transaction fee and get instant access to your money, or

(2) Wait for your finances if nothing is urgent

If you chose to pay the fee, it is a better idea to go with the Square Card. This is a debit card that you can use in all places that accept MasterCard.

Still, you can sit back and wait for the finances to reach your bank account.

“If you’re not after immediate access, you can continue with Square’s normal next-business-day transfer, which will remain free-of-charge,” explained Square during the announcement.

Business owners should remember that Square’s next-office-day fund transfers occur within 36 hours or 1-2 office-days. Factors like the accessibility of the Automated Clearing House and the day-of-the-week may influence when your funds arrive.

But if waiting a day or two is okay for your situation, then patience is an excellent way to save some money.

Go with what works for you!

By now, the new rates should be active, and merchants who need their money on the same-day can have instant access to the service.

Square merchants can always choose to wait or pay the fee and have quick access. Or still, alternate between the two depending on their changing needs.