Break even point is $120,000 of transactions per year, if I'm doing my math correctly.
Which is almost nothing if you're any sort of business.
But capped at 250k / year
Yes, but it leaves a fairly small sweet spot. $120k through $250k you're saving money, but anywhere outside that you're paying the 2.75% transaction fee (or higher, if you're on this new plan and running less than $120k worth).
This mainly means that small businesses get a lower rate (1.32%) on their first $250k in sales. Meanwhile, it builds up good will and is great press. Seems like a sensibile move from Square.
It would be nice if square automatically chose the cheaper option.
So I pay per swipe until I reach $275 in fees. After that, it holds steady until I reach the next point.