MudRock
Well-Known Member
- Reaction score
- 1,174
- Location
- Manitoba, Canada
I'll play the bad guy/other side.
I am unsure of these and their pricing structures in the US/other countries, but in Canada, Square and Stripe are more expensive than a standalone unit at the discount rate. It is something you'll need to evaluate and determine if it is in your best interest. In some instances, these "simple" platforms can go a long way against the cost factor.
From the Church's standpoint, the extra 1% (Or less because the manual entry discount is so high), the additional amount would be well worth the insurance of not having catastrophic problems. I was also thinking about this; The Church sounds like they are doing almost exclusively manual entry, which I would figure at some point the processor will not like the risk. One chargeback and it is possible the Church would be clamouring for a new processor or unable to get a new one.
Some other benefits are the POS system of Square as well easy integration of Stripe without a ton of code, which could be a much cheaper alternative than others.
However, if you do any volume, you will find very fast that 1%+ is a lot of cash flying out the door.
Sure, you're not trying to estimate your actual rate so that it can be much simpler to budget/plan with a fixed rate, but in most cases, if you're pushing any volume, old terminal-style terminals can be more economical.
Use my terminal as an example. I re-worked it out based on my average discount rate, and if I sell more than $1200 a month onto a credit card, the older style is cheaper. I don't have to worry about if a customer drops my reader (My rental also covers any damage as long as it wasn't caused by gross negligence or a part of a crime. I've had a few customers bounce my terminal.)
Remember, old style processors, your discount is variable on the type of card used - You are paying for that farmer for the Air Miles for their 3rd trip around the world this year. You're still paying that trip for them with Square/Stripe/etc, you just don't see it.
I did keep my Square active however because
I am unsure of these and their pricing structures in the US/other countries, but in Canada, Square and Stripe are more expensive than a standalone unit at the discount rate. It is something you'll need to evaluate and determine if it is in your best interest. In some instances, these "simple" platforms can go a long way against the cost factor.
From the Church's standpoint, the extra 1% (Or less because the manual entry discount is so high), the additional amount would be well worth the insurance of not having catastrophic problems. I was also thinking about this; The Church sounds like they are doing almost exclusively manual entry, which I would figure at some point the processor will not like the risk. One chargeback and it is possible the Church would be clamouring for a new processor or unable to get a new one.
Some other benefits are the POS system of Square as well easy integration of Stripe without a ton of code, which could be a much cheaper alternative than others.
However, if you do any volume, you will find very fast that 1%+ is a lot of cash flying out the door.
Sure, you're not trying to estimate your actual rate so that it can be much simpler to budget/plan with a fixed rate, but in most cases, if you're pushing any volume, old terminal-style terminals can be more economical.
Use my terminal as an example. I re-worked it out based on my average discount rate, and if I sell more than $1200 a month onto a credit card, the older style is cheaper. I don't have to worry about if a customer drops my reader (My rental also covers any damage as long as it wasn't caused by gross negligence or a part of a crime. I've had a few customers bounce my terminal.)
Remember, old style processors, your discount is variable on the type of card used - You are paying for that farmer for the Air Miles for their 3rd trip around the world this year. You're still paying that trip for them with Square/Stripe/etc, you just don't see it.
I did keep my Square active however because
- Black/unlimited cards. Their discount rates often creep above the 3% (And yes I got good at knowing)
- Main processor down or internet down (Didn't have to mess with tethering or lose a sale.)
- Recurring billing module. Great for Domains, Hosting, MSP services, managed antivirus or recurring retainer methods, to name a few
