Important notice for Square users processing high transaction volumes with debit payments: The favorable rate of $0.10 per $5,000 debit transaction, which previously had no monthly fees, will no longer be available for existing users starting from September 21, 2023. This change has already been implemented for new users.
The cost to you is 2.65% per transaction when a customer taps or inserts a credit card (Visa, Mastercard, American Express, and international credit card)
0.75% + 7¢ per Interac debit transaction
Instead of the previous $0.10 fee, you will now be charged an additional $37.50 for every $5,000 in debit transactions. It seems like Square was banking on the possibility that you would occasionally process credit card payments to offset their profits. While a fee cap or monthly rate would have been more manageable, the current situation becomes concerning when compared to traditional payment machines. It’s tempting to consider switching back to e-transfers or cheques to avoid these fees. Have any other providers sent you fee increase letters, and if so, by what margin?