That's good to know. It's not unusual for me to do $2000-3000 daily in plastic, with the occasional gust to $8000.
Another item I didn't ask about in the first message is about charge backs. My current processor doesn't even notify me in advance it's happening. I only find out somethings up when an unexpected reduction happens on my bank account from them. And then 5-7 days later, I finally get a letter in the mail.
All too often it is something I would have readily resolved if the goofy customer would have had the courtesy to call and speak with me. But instead of the processor asking first for my side of story (like it used to happen years ago), it's guilty and then prove my side.
So what is Square's (or others) policy on this? Jesse... how about your outfit?
At that volume you're kind of beyond where Square makes a lot of sense. You should be considering an interchange plus account. I realize that sounds like more complicated pricing, but in reality it is simpler, and you'll spend less on credit card processing.
I believe Square is going to lock whatever funds exist in your square account for the chargeback amount until it is resolved. As to how it works precisely with us that's an answer better given by one of my coworkers. I deal mostly in the back-end technology, infrastructure, and integrations.
At the end of the day EVERY single credit card is placed into some sort of bucket. That bucket is called the interchange rate, it's a percentage of the transaction. The rates are published.
When you get "flat rate" pricing the company providing that rate is ultimately making a "bet" that the majority of the processing you do will be on credit cards that fall into an interchange bucket that is less than the flat rate they gave you. It is actually possible for the merchant services company to lose money on your account if they bid the "flat rate" too low and you charge a lot of "expensive" (think high rewards) cards. Mostly though, they're pretty good at these bets, and they turn a pretty profit.
Interchange plus pricing means that your merchant services company will say they will charge you say an extra 30 basis points on whatever interchange is. That is their "cut" of the pie. 30 basis points is 0.3%. This means the company providing your merchant account, your statements, supporting you as a customer, etc would get 0.3% of each transaction you process. Your actual cost will vary depending on what interchange rate the card falls into. Margins are thin in this business, almost all the money goes to the card issuing bank..not the company doing your processing.
Typically, both flat rate or interchange pricing will also charge a per-item fee.
For reference, you're not going to find any company that is processing lots of volume, that would EVER take a flat rate merchant account. Flat rate makes sense for small merchants that hardly process that want things to be "simple".
We offer flat rate pricing and interchange plus pricing. You receive your funds in two business days. Each merchant really does have different needs.
PM me a time that works for you to chat. At the very least I can provide you lots of information to make a decision. I'll be honest, Square certainly has considerable strength in some areas over us (they have a hell of a lot of money). With that said we make a LOT more sense for many merchants.
