Square has launched a debit card for businesses, they previously launched a consumer debit card and then recently added a rewards program. The business debit card will not have a rewards program as such, but if the card is used at a merchant using Squares payment solution there will be an instant 2.75% discount. I can see this card being extremely useful for small businesses owners if supplies or other merchants they do a large volume of business with use Square for payments.
An instant discount of 2.75% is bigger than any other credit card offers as a rewards program. There are two obvious downsides:
- This is a debit card so you can’t float the money during the normal credit card grace period
- Most merchants don’t use Square, so you won’t receive any discount
I can still see this being situationally very useful to some businesses, much like the personal card can be useful for some consumers. It’s good to see payment companies trying different things like this.
Update: 100% useless for personal usage as there’s no way to get money into the balance without charging someone and eating the processing fee.
Does square have a list of merchants?
Ever since they discontinued their “Wallet” app that allowed merchants to see nearby devices and complete payment by tapping a picture of the customer’s face, I haven’t been able to find a list of merchants. I think the problem is that many sellers who use Square register with their home address..
Square’s “Square Register” charges merchants only 2.5%, so you could start your own business, sign up for their processing, use the card on it, and earn a 0.25% profit! (just kidding, you’ll get shut down)
Also, taxes
Opening this one with my “business” as it’s honestly better than PPBDC for many cases, will report back.
Could you clarify more on Square Payment Solution? For instance, if I go to a mom-and-pop coffee shop and they use a Square reader, I should get the 2.75% discount?
Yes if you’re paying with the business debit card offered by Square. For coffee shops specifically, you’re better off using the Square “cash app” personal debit card- $1 instant discount on coffee shop purchases of $1.50+. That’s 66% discount on $1.50… 33% on $3.
Hmm, then it’s very good. My outdoor handyman uses Square for his payment. I wish this came out earlier as I have spent quite a bit of money on my home remodel last summer…
Correct