We often get asked about Square, a mobile processing company based in California. They are known for their white, square readers that you attached to a cell phone to swipe credit cards. While very well known, the free readers they provide are also known for not being very reliable. Many business owners report that their readers sporadically don’t work and have ordered several to make sure they don’t leave a customer hanging. Another huge difference between Frontline and Square is we are not an aggregator. What does that mean? Square pools your funds with many other accounts and eventually you get your funds. We are a full service credit card processing company that directly funds your merchant account. With Frontline, you have a dedicated merchant account. That means you will typically see your funds in 48 hours or less. With Square, merchants can get their funds held, deposits delayed for “investigation”, and accounts even shut down. Also, if you go over your usual amount in sales, your funds will very likely be held until someone at Square reviews the charges. We’ve seen reports of merchants waiting months to get their funds. Imagine getting punished for having a really good sales day?! Square charges a flat fee of 2.75% on every credit card transaction. This rate is higher than the rate charged by conventional credit card processors. We average 1.5% to 3.5%, depending on the card type. There are upwards of 200 card types and often our intercharge fees would beat Square.
Frontline Processing offers a superior mobile swiper to be used with a smart phone or tablet. Our card readers are better quality and unlike many of the previous models that Square was giving away our readers are encrypted. When it comes to security and PCI compliance, encrypted is the way to go. Our readers are reliable and work when you need them. Another reason not to go with Sqaure is customer service. We pride ourselves on having live customer support. Real, live customer support answers our phones and help you promptly. Support from Square is only available via email and Twitter. A quick google search reveals many complaints from Square merchants who were trying to resolve issues (often regarding large amounts of frozen revenue) without being able to speak to a real person or receive a satisfactory response through email. If you look through the Square website you won’t find a phone number or a direct email address to get proper customer support.
An article that came out in April, 2014 from Forbes Why Square needs to Sell Itself- And do it Quickly, raised an even more interesting question. This article points out that Square basically lost $100 million dollars in 2013. “How thin are the margins? Square takes a 2.75% cut of purchases–but keeps very little of that (the Journal put Square’s take at about 1/5 of the total). Say you buy $100 worth of lattes with your Visa at the local coffee joint–Square collects $2.75 but must turn around and give Visa $2.20 of that fee. That leaves Square with a mere $0.55 to fund its entire operation–marketing, growth, sales, customer service, human resources, salaries, rent). Ironically, the more payments Square currently processes, the more money the company loses.” Steven Bertoni, Forbes Staff. This is proof to us that their business model does not work and will not be there in the long term. We have been in business for 17 years, are a privately held company and plan to stay that way.
We are here to help guide you towards the best credit card processing options for your business type and size. Contact us today for excellent customer support and secure processing! 1-866-651-3068