At Beacon Payments, we work with business owners every day who start on Square for convenience — but eventually realize that flat-rate pricing becomes more expensive and less flexible over time, especially as their business grows.

Effective January 13, 2026, Square’s online pricing will increase:

• Online free processing:
  From 2.9% + 30¢ → 3.3% + 30¢
• Online premium processing:
  From 2.6% + 30¢ → 2.9% + 30¢

This isn’t just a rate adjustment — it’s a reminder that big-box payment platforms control the pricing, while merchants are left absorbing the increases.

Beacon Payments takes a very different approach:
we build long-term partnerships, offer transparent pricing models, and help businesses optimize — not just accept — their processing costs.

What the Increase Looks Like on a $100 Transaction

Here’s how Square’s new pricing impacts a typical $100 sale.

Standard Online Rate (2.9% + 30¢ → 3.3% + 30¢)

• Before: $3.20 in fees
• After: $3.60 in fees
  👉 +$0.40 per $100 transaction

Premium Online Rate (2.6% + 30¢ → 2.9% + 30¢)

• Before: $2.90 in fees
• After: $3.20 in fees
  👉 +$0.30 per $100 transaction

Those small-per-transaction increases add up quickly — especially when a business processes thousands of dollars every month.

Real-World Impact: Monthly Cost Increase Examples

Let’s look at what this means in practice.

Assumption: $100 average ticket size
(adjusting ticket size changes the math — which is exactly why flat-rate pricing can get expensive)

📌 Merchant Processing $10,000 per Month

• ~100 transactions
• Increase of $0.30–$0.40 per sale

Approximate additional monthly cost:

• $30–$40 more per month
• $360–$480 more per year

That’s money that could be reinvested into staffing, marketing, inventory — not absorbed into processing fees.

📌 Merchant Processing $50,000 per Month

• ~500 transactions
• Increase of $0.30–$0.40 per sale

Approximate additional monthly cost:

• $150–$200 more per month
• $1,800–$2,400 more per year

At this level, the impact is no longer “minor” — it becomes a major, recurring overhead increase.

👉 And Square controls when the next increase happens.

At Beacon Payments, our goal is the opposite:
protect margins, improve transparency, and help merchants control costs over time — not watch them creep upward.

Why Flat-Rate Pricing Becomes More Expensive Over Time

Square’s flat-rate model is simple — but simplicity comes at a premium:

• No visibility into true interchange costs
• No ability to optimize pricing as volume grows
• Automatic exposure to future rate increases
• Limited relationship-based support

Many business owners eventually realize they’ve outgrown Square — they just haven’t had someone walk them through the numbers.

That’s where Beacon Payments steps in.

Beacon Payments Advantage: Interchange-Plus Pricing

With Interchange-Plus, our merchants pay:

1. The actual interchange cost from the card brands
2. A small, transparent Beacon markup

This model delivers:

• Clear cost breakdowns
• Fair pricing tied to business size & transaction mix
• Opportunities to optimize over time — not pay blended rates forever

For many businesses, switching from Square to Interchange-Plus results in meaningful, recurring savings.

Dual Pricing: Another Strategy to Protect Margins

Many Beacon merchants also choose dual pricing, where:

• One price applies to card transactions
• A discounted price is offered for cash payments

Done correctly and compliantly, this helps:

• Offset rising processing costs
• Protect profit margins
• Keep pricing transparent for customers

Unlike Square’s self-service environment, Beacon Payments provides hands-on onboarding, compliance guidance, and ongoing support.

Beyond Fees — Beacon Provides Real Support, Not Self-Service

Square is a do-it-yourself platform.

Beacon Payments is a relationship-based payments partner.

Our merchants get:

• Direct access to a real support team
• Guidance on pricing, hardware, and integrations
• Long-term cost strategy — not just a login and a help desk

For over 20 years, Beacon Payments has built its reputation on:

• Consistent support
• Transparent pricing
• Protecting the merchant-partner relationship

That’s something automated payment platforms simply can’t match.

Thinking About Leaving Square? Let’s Run a Comparison.

This rate increase is the perfect time to ask:

• Am I paying more than I should for convenience pricing?
• Would Interchange-Plus or dual pricing lower my costs?
• Do I have a payments partner who works for my business — or a platform I work around?

Beacon Payments will review your statement and provide a simple, side-by-side cost comparison — no pressure, no obligation.