{"id":4370,"date":"2021-04-21T10:13:40","date_gmt":"2021-04-21T09:13:40","guid":{"rendered":"https:\/\/businessfinancenews.com\/?p=4370"},"modified":"2021-06-29T11:58:28","modified_gmt":"2021-06-29T10:58:28","slug":"fattmerchant-vs-square","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/pos\/fattmerchant-vs-square\/","title":{"rendered":"Fattmerchant vs Square"},"content":{"rendered":"\n
This is a Fattmerchant vs Square comparison. Actually, Fattmerchant (2<\/a>) is the older name as they have changed the name to Stax in 2021 (1<\/a>). On the other hand, we have Square, a payment processor that withholds up to 30% (4<\/a>) (7<\/a>) of the transaction to the retailer even without disputes, or chargebacks (3<\/a>) what has already affected downgraded this processor (5<\/a>) and was even recognized by the company (6<\/a>). <\/p>\n\n\n\n In the Fattmerchant vs Square comparison, Fattmerchant is a preferred processor for larger companies with large volumes of transactions and even for small retailers while Square charges a high percentage of the transaction and also withholds 30% of the payments for four months since 2020. <\/strong><\/p>\n\n\n\n Fattmerchant vs Square evaluation determined that while Fattmerchant’s payment processing subscription has a flat rate of $99, Square charges an average of 2.6 % on each transaction and retains up to 30% of the payments processed by their customers for four months since 2020.<\/strong><\/p>\n\n\n\n Furthermore, when we analyze the software in the comparison of Fattmerchant vs Square, we encounter that Fattmerchant has better reporting and analytics. While Fattmerchant handles better a network of stores where the business owner requires to disaggregate and analyze data of each store, Square software is easier to learn for small store owners.<\/strong><\/p>\n\n\n\n Therefore, we cannot recommend Square at all in this Fattmerchant vs Square comparison due to the policy adopted by Square of withholding 30% of the payments during the four months that we have described above. This practice occurs even without disputes and without chargebacks. This practice is very common in Square and started a couple of years ago, in 2020.<\/strong><\/p>\n\n\n\n I cannot recommend a payment processor that retains to small businesses up to 30% of their payments even without a history of disputes and without chargebacks.<\/p>\n\n\n\n Users of Shopify will fill that the integration with Square is very smooth, and that is not the case with Fattmerchant in my opinion. Fattmerchant has a direct integration with Quickbooks and 3DCart.<\/p>\n\n\n\n Fattmerchant bills a flat $99 per month to companies over $80,000 in annual sales (plus $0.08 per transaction) if they process more than $80,000 annually. A transaction of this size would cost less than 1.5% of the total amount. The company charges 2.9% + $0.08 per transaction for companies that sell less than $80,000.<\/strong><\/p>\n\n\n\n For instance, Square charges 2.6% + $0.10 per transaction, while PayPal charges 3% + $0.07 per transaction. Square also has started to withhold 30% since 2020 to some selected merchants during four months, leaving their customers without that income for several months. There is no doubt that this is a much better price per transaction for businesses that accept smaller orders, in terms of cost per transaction, but once you start scaling it becomes more beneficial to move to Fattmerchant (Stax).<\/strong><\/p>\n\n\n\n Taking advantage of Square is free very soon after you create an account and make payments. In addition, if you choose to take advantage of some of the features that Square has to offer, a few fees will apply.<\/p>\n\n\n\n In order to ensure that businesses can manage any fees associated with credit and debit card transactions, Square offers a flat rate for every transaction they perform.<\/p>\n\n\n\n There are other charges included with Square products that do not require a flat rate if you are using Square products since you will need to determine how you will collect the customers’ payments based on the way they want to be paid.<\/p>\n\n\n\n Square offers a flat rate on each transaction a small business processes regardless of whether it\u2019s a debit or credit card.<\/p>\n\n\n\n Additionally, Square offers other transaction rate options based on what Square product you\u2019re using. For example:<\/p>\n\n\n\n Furthermore, it is important to note that their different rates differ for certain card-not-present transactions, for instance, the ones requiring payment by phone, through an online website, or virtually through an invoice sent through their website. If your transaction involves any of these cases, then your rate could jump upwards to 3.5% + $0.15. When thinking about the transfer or transaction fees that need to be considered, these are factors that need to be reviewed.<\/p>\n\n\n\n Square charges 2.6% + 10\u00a2 per transaction for every in-person payment. This includes credit card and debit card payments on the point of sale (POS) terminals and equipment, as well as mobile payments that are processed through the tap-to-pay solutions.<\/p>\n\n\n\n On the other hand, Fattmerchant (Stax) has lower pricing for in-person or card-present payments.<\/p>\n\n\n\n Fattmerchant (Stax) offers a simple monthly subscription cost with variable costs ranging from six cents to fifteen cents depending upon your rate of transactions and method type. For instance, the variable costs differ in keyed and swiped payments.<\/p>\n\n\n\n This difference in pricing also shows up in card-not-present (CNP) payments. For Square Virtual Terminal, the pricing for entering and processing card details manually is 3.5% + 15\u00a2 per transaction. This also applies to any card on file transactions through a virtual terminal.<\/p>\n\n\n\n Whereas, processing online transactions through the Square payment processor where the customer enters their card details by themselves is charged at 2.9% + 30\u00a2 per transaction. These charges are applicable for Square eCommerce stores, using Square eCommerce API in apps, and using the card on file for eCommerce transactions.<\/p>\n\n\n\n Stax once again surpasses Square credit card processing in terms of affordability. For CNP transactions entered using the Stax Platform, the price stands at the monthly cost plus the direct cost and the twelve cents or more per transaction. <\/p>\n\n\n\n For online transactions such as shopping carts and invoices that are processed by the customer\u2019s end, the charges will also vary but will have a simple monthly cost.<\/p>\n\n\n\n The cost of using Square hardware:<\/p>\n\n\n\n Processing Fees<\/strong><\/p>\n\n\n\n In order to get the most out of Fattmerchant you are required to sign up as a subscription customer and the payment is based on how much money your business processes annually, thus translating into how much work the Fattmerchant system must do. <\/p>\n\n\n\n Essentially, it offers the starter package for 99 dollars per month, which is meant to be used by businesses that make less than $500,000. Those of you who operate organizations that process more than half a million will be charged $199 a month.<\/p>\n\n\n\n The reason for a subscription-based model is that Fattmerchant does not charge an \u201cinterchange fee\u201d or \u201cinterchange rate\u201d<\/p>\n\n\n\n The Interchange Rate, of which Visa and Mastercard have complete control, is a rate that is non-negotiable. The amount of fees varies depending on factors such as whether the card is a credit or debit card, how the payment is made (via a swipe or a tap), and whether it is a rewards card or a corporate card.<\/p>\n\n\n\n Most payment processors include interchange rates in the transaction costs, completely aggregated without discrimination. Therefore it is nearly impossible to tell exactly how much each transaction costs. Fattmerchant commands a monthly subscription to hedge this.<\/p>\n\n\n\n The cost per transaction will change depending on the subscription you choose. These break down as such:<\/p>\n\n\n\n The differences are evident in terms of equipment pricing. For instance, Square\u2019s premium POS system labeled the Square Register can cost an average of $799 to set up.<\/p>\n\n\n\n Similarly, your first Square card reader that connects to mobile devices is free, but you need to pay $10 for each additional reader that you acquire. Whereas, Fattmerchant (Stax) provided POS systems of the same level are offered at varying competitive prices depending on the model chosen.<\/p>\n\n\n\n This outlines that Stax is a far more affordable option than Square in terms of one-time equipment and ongoing transaction costs.<\/strong><\/p>\n\n\n\n The most important thing to keep in mind is that Square is simply a third-party payment processor. They do not offer a merchant account like a traditional merchant service provider.<\/p>\n\n\n\n Square enables the business owner to open a free account with a few clicks and without impediments according to the business vertical where you operate<\/p>\n\n\n\n The fact that they have restrictions for some types of businesses to make use of their services does not mean that they are a traditional merchant services provider, and they do not require businesses to attend an underwriting process or risk review before they might be able to open an account with them.<\/p>\n\n\n\nFattmerchant vs Square Costs<\/h2>\n\n\n\n
There is a Noticeable Difference in Pricing<\/h3>\n\n\n\n
Disaggregated Costs Fattmerchant vs Square<\/h2>\n\n\n\n\t\t\t
Square Costs<\/strong><\/h3>\n\n\n\n
Fattmerchant Costs<\/strong><\/h3>\n\n\n\n\t\t\t
Platform<\/strong><\/th> Fattmerchant Cost per Transaction (Starter)<\/strong><\/th> Fattmerchant Cost per Transaction (Enterprise)<\/strong><\/th><\/tr><\/thead> EMV Terminal<\/strong><\/td> $0.08<\/td> $0.06<\/td><\/tr> Shopping Cart<\/strong><\/td> $0.15<\/td> $0.12<\/td><\/tr> Virtual Terminal<\/strong><\/td> $0.15<\/td> $0.12<\/td><\/tr> API<\/strong><\/td> $0.15<\/td> $0.12<\/td><\/tr> Mobile<\/strong><\/td> $0.15<\/td> $0.12<\/td><\/tr> Integrations<\/strong><\/td> $0.08<\/td> $0.08<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n FATTMERCHANT vs SQUARE in regards to the type of transaction<\/strong><\/th> FATTMERCHANT <\/strong><\/th> SQUARE
<\/strong><\/th><\/tr>Swiped\/in-person<\/td> $99.00 \/mo. + $0.08 \/transaction<\/td> 2.6% + $0.10 \/transaction<\/td><\/tr> Keyed\/card-not-present<\/td> $99.00 \/mo. + $0.15 \/transaction<\/td> 3.5% + $0.15 \/transaction<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Cost Differences In The Hardware Equipment<\/h3>\n\n\n\n
Fattmerchant vs. Square: Side-By-Side Comparison<\/strong><\/h2>\n\n\n\n
<\/th> <\/th> <\/th><\/tr><\/thead> Profile<\/strong><\/td> This is a subscription-based application platform, which provides unlimited credit card processing at a direct cost to several industries, including retail, healthcare, professional services, and private individuals, providing a PCI compliant environment across EMV \/ virtual terminals, shopping carts, mobile and more.<\/td> It is now possible to receive payments via Square Payments, an integrated payment processing service that integrates with Square hardware and POS software to allow businesses to accept payments online.<\/td><\/tr> API for Integration<\/td> Yes, available, but I have not tested them.<\/td> Yes, available, but I have not tested them.<\/td><\/tr> Cash management<\/td> No cash management and no cash transactions supported.<\/td> Yes, cash management and transactions supported.<\/td><\/tr> Compliance Management<\/td> Does not offer a Compliance management module with compliance reporting.<\/td> Yes, compliance management supported for complex requirements.<\/td><\/tr> Contract basis<\/td> It is subscription based<\/td> No subscriptions.<\/td><\/tr> ACH Payment Processing<\/td> Yes, always covered ACH payments<\/td> Yes, covers these payments since 2021.<\/td><\/tr> POS Software Starting Price<\/strong><\/td> Download for free. It requires a subscription later on<\/td> $0 per month for standard
but more options are available for a fee.<\/td><\/tr>
Payment Processing<\/strong><\/td>$99 per month
+ 8 cents per transaction
(+ 15 cents for manual entry).<\/td>2.6% + 10 cents
(3.5% + 15 cents for manual entry)<\/td><\/tr>Hardware<\/strong><\/td> Physical, virtual, and mobile terminals
that come with subscription.<\/td>Magstripe reader is free
(additional hardware starts at $49).<\/td><\/tr>Platforms supported<\/strong><\/td> iOS, Web based and Android but not Windows<\/td> iOS, Web based and Android but not Windows<\/td><\/tr> Analytics and Reporting<\/strong><\/td> Yes, and much better than Square.<\/td> Yes<\/td><\/tr> Employee Management<\/strong><\/td> Several integrations<\/td> Accounts, time tracking, payroll, exports, and more.<\/td><\/tr> Customer Service<\/strong><\/td> Slightly better than Square: Phone, email, and 24\/7 live representative support (chat), training. But neither FAQs nor forums.<\/td> Phone, email, and limited live support (chat). When an account is blocked, there is no way to appeal this.<\/td><\/tr> Integrations<\/strong><\/td> They integrate with Authorize.Net, 3DCart and Quickbooks<\/td> Yes, all major integrations except Authorize.net. <\/td><\/tr> Security<\/strong><\/td> Level 1 PCI service provider.<\/td> PCI Data Security Standard (PCI-DSS).<\/td><\/tr> Billing<\/strong><\/td> Complete billing and invoicing functionalities plus a billing portal that is user-friendly in my opinion.<\/td> Complete billing and invoicing functionalities without billing portal or dashboard.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Key Factors Regarding Square<\/h2>\n\n\n\n
Fattmerchant Features<\/h2>\n\n\n\n\t\t\t