Square made card acceptance easy for millions of small businesses, and for many it's the right place to start. But as sales grow, the same simplicity can start to cost you. Here's how to tell when it's time to look at a dedicated merchant account.
How does Square pricing work?
Square uses flat-rate pricing: one published percentage plus a fixed amount per transaction, with different rates for in-person, online and keyed-in sales. The same rate applies whether a customer pays with a low-cost debit card or a premium rewards card.
What's the benefit of a dedicated merchant account?
A dedicated merchant account is usually priced on interchange-plus: you pay the true cost of each card plus a fixed, disclosed markup. When customers pay with lower-cost cards, your cost drops automatically.
When does switching make sense?
Signs you may have outgrown flat-rate pricing:
- Steady monthly card volume rather than occasional sales.
- Lots of debit card or small purchases, which flat-rate pricing overcharges most.
- Larger average tickets, where every tenth of a percent adds up.
- Account holds or frozen funds that disrupt your cash flow.
- You want a named contact rather than self-serve support.
When should I stay with Square?
If your volume is small or seasonal, or you rely on Square's software features and the cost difference is minor, staying put can be the right call. The point isn't to switch — it's to know what you're paying.
How do I compare?
Calculate your effective rate from one statement: total fees ÷ total card sales. Our free fee checker does it in a minute and tells you whether that rate is high for a business like yours. If it is, a side-by-side comparison will show exactly what you'd pay on interchange-plus.