Square® and Payd® For Small Business

Square and Payd have similar programs that work well for many small businesses accepting credit cards. The actual processing rates are considerably higher than a traditional competitive processing program, however they have no or little fixed monthly costs. Using an average monthly cost of $41 for fixed costs including admin, PCI and terminal rental and an average processing rate of 1.85% for the conventional program the breakeven point is about $5000 in credit card sales a month. Therefore until you are doing a minimum of $5000 a month in credit card sales you are probably better off with either Square® or Payd®

Some other factors that affect the comparison are the ability to accept Interac debit which both of the above companies can now do with some cautions. Square offers an attachment (purchase for $59) that connects to your cell phone via Bluetooth and gives you the ability to accept contactless payments, however transaction limits apply to these transactions. Payd has made the new Ingenico ICMP pin pad available however there is a rental fee of $19.95 a month which drops the breakeven point to around $2500 in credit card sales. It should be noted that the cost of processing Interac with both companies is higher than with competitive traditional programs

Finally a big difference that would affect your breakeven point is the actual processing deal you negotiate and how, when, where and with whom you do your credit/debit card transactions and what your actual processing rates are. Note we have highlighted the word “competitive” here, the actual rates including fixed costs vary wildly from company to company and merchant to merchant. Be careful read the application and know what you are getting into or contact us for expert advice.



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