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So if your (small) business takes $60,000 in a year, you will pay square $3300; effectively a rate of 5.5%.

If your business takes $160,000 in a year, you end up paying square a rate of around 2.06%.

Is this really that revolutionary? (.. am I oversimplifying the situation?)

This is revolutionary because it is the first time that merchants have been ever been given the option to pay a flat fee per month in lieu of paying a percentage fee on each transaction. While that may not seem like a big deal you, merchants really love the simplicity of it.

A business that processes 60K a year is below the size that is targeted by this pricing structure. They are better off continuing to pay 2.75% per transaction.

It's a differently packaged variable rate fee IMO.

Yes but if your small business only does $60k in CC transactions it's likely on its last legs to begin with. You would need more to cover your expenses also...unless your business is very cash-heavy. At $200k in transactions that $3300 yearly fee is 1.65% which is a lot lower than what most retailers are getting (which is in the area of 3% to my understanding).

Last legs, or first legs .. it's a matter of opinion ;-)

I just get the feeling square are offering a similar deal to a lot of other payment gateways, but packaging the deal differently - i.e. they're not really being that disruptive.

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