Introduction:
The PayCompass Square program has been expanded with three new flat-rate pricing options. Sales agents now have five U.S. Square pricing paths available. This will give Sales Agents more flexibility with structuring an opportunity based upon the requirements to win the merchant's business.
Providing more options can also lead to more questions from Sales Agents. The purpose of this article is to keep it simple so that conversations with Sales Agents can be more efficient when taking inbound inquiries with Square pricing options.
The end goal:
- Assist Agents with choosing the pricing
- Provide guidance with using the correct link
- Ensure that they understand their options
Section 1: Choose the correct pricing
Here’s the current Square pricing lineup:
Pricing Option | Pricing Structure | What You Need to Know |
Rack Rate | Standard Square Pricing | Standard Square processing rates |
3% Flat Rate | Flat Rate | Merchant must have an average ticket of $25+ to qualify for this option |
3.5% Flat Rate | Flat Rate | If using this link for a cash discount, the merchant must raise their pricing |
3.84% Flat Rate | Flat Rate | Customer facing 4% Cash Discount |
4% Flat Rate | Flat Rate | If using this link for a cash discount, the merchant must raise their pricing |
Important: 3% is Square's floor. Square will not offer a flat rate below 3%.
Section 2: Use the correct link
Once the appropriate pricing option has been determined, the Sales Agent will use the corresponding signup link for the merchant.
Rack Rate
https://app.squareup.com/signup/en-us?signup_token=A1A24F6B20
3% Flat Rate
https://app.squareup.com/signup/en-us?signup_token=5FD1ABB2EC
3.5% Flat Rate
https://app.squareup.com/signup/en-us?signup_token=EC0A41D848
3.84% Flat Rate
https://app.squareup.com/signup/en-us?signup_token=B7EF675A65
4% Flat Rate
https://app.squareup.com/signup/en-us?signup_token=FAD9383F85
"Not sure which link to utilize? Ask us first."
With multiple pricing options available, the goal is to prevent the Sales Agent from guessing, or even worse, accidentally using a link that could send a merchant down the wrong path. Sales agents are encouraged to either reach out to their local RSD or contact the Sales Operations team (sales@paycompass.com) to help determine the appropriate setup.
Section 3: Enabling surcharging
Surcharging is not one of the Square pricing methods listed above nor does it require a specific sign-up link.
Step one requires the merchant to sign up using the appropriate Square pricing link.
Step two requires the merchant to enable surcharging by turning on the surcharging feature within their Square dashboard.
In other words: Choose the correct pricing → Sign up → Enable surcharging in Square dashboard
Section 4: Setting up a merchant with cash discounting
Another way for merchants to take advantage of the flat-rate options is to sign up for cash discounting.
To make the math work while maintaining the merchant's intended cash price, the merchant can increase their posted prices by the appropriate amount and then offer a discount for customers paying with cash.
The necessary increase is slightly higher than the processing rate itself.
CASH DISCOUNT QUICK REFERENCE
Square Flat Rate | Required Price Increase | $100 Base Price Becomes |
3% | 3.09% | $103.09 |
3.5% | 3.63% | $103.63 |
3.84% | 3.99% | $103.99 |
4% | 4.17% | $104.17 |
The breakdown
Example: A merchant wants to receive $100 and is using the 4% flat-rate option.
Simply increasing a $100 price by 4% to $104 doesn't net the amount desired by the merchant. Four percent of $104 is $4.16 which leaves the merchant with a net of $99.84.
Instead, the merchant increases the posted price by approximately 4.17%, making the new price $104.17.
4% of $104.17 is approximately $4.17, bringing the effective amount back to approximately $100.
The same calculation applies to each flat-rate option:
3% Square rate → 3.09% price increase
3.5% Square rate → 3.63% price increase
3.84% Square rate → 3.99% price increase
4% Square rate → 4.17% price increase
Price adjustments can be made globally within the Square portal.
IMPORTANT: Before positioning cash discounting to a merchant, Sales Agents must ensure that they are following current PayCompass guidance regarding program setup, disclosures and applicable requirements. If Sales Agents have questions, they are encouraged to reach out to their local RSD or the Sales Operations team.
RECAP
Our goal is to keep it simple for the Sales Agent and their merchants.
There is no need to memorize five links, four cash-discounting calculations and every single Square setting.
The Regional Sales Directors and Sales Operations team are readily available to assist with any Square pricing inquiries.
The messaging to Sales Agents is clear and simple.
- Choose the applicable pricing
- Use the right link
- Surcharging and cash discounting are available options
- When in doubt, Sales Agents are encouraged to reach out to either RSDs or Sales Operations
More options provides Sales Agents with more ways to effectively present Square to a wide variety of merchants in need of a solution to manage their daily business operations.