Let’s take the next three days and talk about Square. They’ve carved out a very nice niche, no doubt. But are they really the best fit for every business? As seasoned sales professionals, we know the answer is a resounding NO. Let’s break down why you’re holding a winning hand against this “flat-rate” giant.
1. The “Flat-Rate” Fallacy: Higher Fees for High-Flyers
Square’s so called “simple” 2.6% + 15¢ per swipe sounds appealing, right? But for businesses processing significant volume, it’s a trap! Interchange-plus pricing or dual pricing will dramatically reduce or eliminate costs for those high-volume clients. And don’t even get me started on the 3.5% + 15¢ for keyed-in transactions – highway robbery!
Your Pitch: “Mr./Ms. Business Owner, let’s analyze your monthly volume. You might be surprised how much you’re overpaying with Square’s flat-rate model. We can offer you a transparent, interchange-plus pricing or dual pricing structure that scales with your success.”
2. Account Instability: The Sword of Damocles
Square’s aggregator model means your clients are at the mercy of their algorithms. Sudden account holds, freezes, and terminations? That’s a nightmare scenario. We offer individual merchant accounts, providing stability and peace of mind.
Your Pitch: “Imagine your funds being frozen without warning. Square’s aggregator model puts your business at risk. We offer dedicated merchant accounts, ensuring your funds are secure and accessible.”
3. Customer Support Black Hole: No Lifeline When You Need It
Limited phone support during business hours and no dedicated account manager? That’s not service – that’s a gamble. We offer personalized support, including dedicated account managers who understand your clients’ unique needs.
Your Pitch: “When you need help, you need it now. Square’s limited support can leave you hanging. We provide dedicated account managers and 24/7 support to ensure you’re never alone.”
4. No Room to Negotiate: One Size Fits… Nobody
Square’s rigid pricing structure leaves no room for negotiation. We understand that every business is different. We offer custom, negotiable rates tailored to your clients’ specific needs.
Your Pitch: “Your business is unique. Why settle for a one-size-fits-all solution? We offer flexible, negotiable rates that reflect your business’s specific needs and growth potential.”
5. High-Risk? High-Volume? High-Tail It Out of There!
Square’s limitations are glaring when it comes to high-risk industries and high-volume businesses. They lack the advanced fraud prevention tools and specialized support these clients need.
Your Pitch: “For businesses in specialized industries or those processing significant volumes, Square’s limitations become clear. We offer robust fraud prevention tools and tailored solutions for high-risk and high-volume businesses.”
6. Locked into the Square Ecosystem: Hardware Headaches
Square’s proprietary hardware and software lock businesses into their ecosystem. Want to switch processors? Good luck! We offer flexible solutions that integrate with a wide range of hardware and software.
Your Pitch: “Don’t get locked into a single ecosystem. We offer flexible solutions that work with your existing hardware and software, giving you the freedom to choose.”
7. POS Integration Nightmares: Forced to Fit a Square Peg in a Round Hole
Square’s POS system does not integrate with industry-specific software, forcing businesses to adopt their system or find clunky workarounds. We offer seamless integration with a wide range of POS systems.
Your Pitch: “Your POS system is the heart of your business. Don’t compromise. We offer seamless integration with your existing POS system, ensuring a smooth and efficient workflow.”
8. True Dual Pricing: Empowering Customers, Not Penalizing Them
Square, while offering some form of cash discounting, often falls short of true dual pricing. Many businesses using Square’s methods end up effectively penalizing cash customers with hidden fees or awkward “surcharges.” We offer true dual pricing solutions that are transparent and compliant, allowing businesses to offer genuine discounts for cash payments, boosting their bottom line and customer satisfaction.
Your Pitch: “Imagine offering your customers a genuine discount for paying with cash, without any hidden fees or awkward surcharges. That’s the power of true dual pricing. Unlike Square’s often-murky approach, we provide transparent and compliant solutions that empower your customers and boost your profits. We ensure that your cash discounting program is fully compliant and that your customers understand the benefits of paying with cash. This creates a win-win situation, enhancing customer loyalty and increasing your bottom line.”
Square is a decent entry point, but it’s not a long-term solution for growing businesses. We offer the personalized service, flexible pricing, and robust features that businesses need to thrive.
Arm yourself with this knowledge and go out there. Show your prospects why they deserve more than Square. Show them the value of a true merchant services partner.
Tomorrow we will look at Part 2 – Decoding Square’s Fees: Your Secret Weapon to Win More Deals
Happy Selling,
David
Payment Lynx Daily 