I have recently started working with a new client who is opening a beer garden / coffee shop. I haven't done a lot of retail accounting. They plan on using Square. My initial thought is that they could save money on the fees by choosing a merchant provider but maybe I'm out of touch. Any ideas out there for me to share with them? Thanks in advance!!
We use Square and QBs Merchant Processing, so will try to explain both. Square is going to be harder to keep track of in QBs and also to match to payments, because they take the fees out before depositing. I have found QBs Merchant to be the easiest to use and be able to record the payments easily. However, Square is a little cheaper in fees than QBs, if they are entering manually. If you have any other questions, please let me know. :)
Depending on the card revenue the merchant processes monthly, they may be able to reduce their fees. The recommended guideline is if a business consistently runs more than $2,500/month and has an average transaction of over $15 a better deal can be attained with a merchant processor.
Another important consideration is ensuring the process of taking payments is as smooth as possible. Technical support is a vital part of taking payments. With technology, there can, at times, be problems. Instant support is extremely important. A lot of customers do not carry cash, if a merchant is unable to process their credit card, they lose sales. Note that Square offers only online support, via their self-service website, email or twitter.
It is a best practice for merchant's to shop rates/service annually as this is a highly competitive service.
I have worked in the payments industry for 18 years and currently represent Payscape. I am available to discuss any additional concerns you may have. Additionally, I would be happy to work with you to analyze your specific client's situation complimentary as well as discuss a referral relationship. Let me know if you are interested.