The new POS app is a welcome addition to the family. Its a platform that is perfect for my business. The only problem is your price structure.
Your .30 per transaction fee is way over priced and not even close to being competitive. The highest transaction fees are typically .15, but the vast majority of Merchant service providers will only charge .05 if pressed. Square charges 0.
.30 per transaction is way out of line, if you want this service to succeed, please price it competitively in the marketplace. .30 per transaction effectively doubles your interest rate. A $10 transaction is at 5.5% not even considering your monthly fee.
I really want to add Shopify POS to our retail store...but I'm not going to pay 5%+, I can't afford to give away 5% of my sales to accept credit cards. Please reconsider your pricing structure.
"The average checkout on Shopify is $77.00 where the cost savings are significant."
Are you kidding? There is no scenario possible where your rate is lower, and "significant savings" how is this possible? Do the math. The .30 per transaction + monthly fee make a huge difference. Square is much cheaper no matter how you do the math.
This is the POS forum. The average checkout on "Shopify" is irrelevant. The POS software is used in a retail store where the average checkout is much lower. But since you have access to all the data, why not tell us what the average of ALL of your Shopify customers are? Adam, please realize these rates are way higher the industry standard for retail. I think you will find that your POS user base will double or triple if you adjust your rates to be competitive with the industry. At .30 you are the highest rate I've ever seen.
NOBODY charges .30 a transaction...this rate is out of the ball park. I have run retail stores for 27 years, and Ive never paid more than .15 per transaction. The current average rate is .05/transaction. Square is zero per transaction.
My average sale in Shopify for August is $36.68
Square rate at 2.75%= $1.01 total fees
Shopify at 2.5% + .30= $1.22 (not counting $50/mo)
That is 21% higher not counting monthly fee.
If you add the monthly fees your fee jumps to $2.47 which is 145% higher.
I realize I'm on the smaller side of on-line shops, but I would suggest I represent the average Shopify user.
Now in my retail store the numbers are different and the sales are significantly higher (we do 10X the volume in our retail store vs Shopify):
My average sale in Square for August is $23.28
Square rate at 2.75%= $.64 total fees per sale (avg)
Shopify at 2.5% + .30= $.88 (not counting $50/mo)
That is 38% higher not counting monthly fee.
What kills us is that we typically have sales of $2, $3, $5- with these sales you are taking upwards of 15% of the sale due to your .30 transaction fee. The numbers above are based on average sales. You really have to factor your sales individually to get the true rate. Our actual rate with Shopify would be significantly higher than these "averages"
With Square, its the same flat 2.75% with no monthly fee.
Also keep in mind Square also does a flat $275/mo, so if you are doing 20k monthly Squares rate is actually 1.375% Flat with ZERO FEES
is there a way to use the shopify pos along with square processing the payments? I used the shopify pos card swiper tonight for the first time and it was a major disaster!! I did over 4k in sales and had to manually enter about 90% of the transactions and was only brought to the screen for the customer to sign a handful a times leaving me confused if the sale actually went through. They did thank goodness!! But this caused a ton of stress! I too have always used square and have always been happy with the service and the rates are like you said a lot better. But shopify pos syncing to my online is a big time saver. If there was a way to combine the two that would be amazing!!!
Just wanted to update on my experience. I think I have found a solution for anyone wishing to combine Square's rates with the Shopify POS app. I rang all my sales in Shopify POS and then created a payment tab named "square" I then switched over to square to actually swipe the credit card. So at the end of the day the numbers in Shopify matched my Square numbers. This makes my life a lot easier as I can pull reports in one place as well as keeping my online inventory up to date. Also, another great thing about ringing the sales in Shopify POS is it allows you to collect customers e-mails for your e-mail list...which as been my number one marketing ploy that actually works!!! Hope this helps anyone looking to combine the two.
I just discovered that this may not even be the half of it. My transactions are higher so .30 + 2.5% looks attractive on the surface... however... I have just signed up and noticed two things: 1.) It says my deposit will be made a WEEK later instead of the next business day as with every other merchant account I've used. 2.) They are taking out the fees up front rather than at the end of the month. My current merchant provider has less attractive fees and they do screw me on foreign cards or rewards cards, however the total fees always seem to average around 2.9-3% - that includes monthly fees, batch fees, per transaction fees, and so and so forth - total CC processing eat 3% of my lunch basically. However, the current provider deposits the total gross sale on the next business day (no one week interest free loan on my dime) and they take out the fees at the end of the month which makes accounting easier and it's certainly preferable to pay any bill later rather than earlier.
This leaves me feeling like the marketing of this payment product is dishonest since the fees are not compared apples to apples. They say "no hidden fees" but I consider interest free loans on my dime to be a "hidden fee" without question.
I completely agree on how rediculus the pricing structure is. SQUARE IS FREE FOR ITS SERVICE! Shopify charges for the site , the pos the transaction fee, unbelievable! and not only that every ipad I use is 50$ more dollars. I can have 20 locations with square and the FEE IS 0$. Shopify is already twice the cost of my previous site.
50$ a month for pos, seriously! square is free
I was really excited to see the pos. I didnt even look at the fees, well because they werent advertised, so I assumed that it was a really cool feature included in my really expensive service called shopify. Especially with all the addon apps that you need. I really thought that wow how awesome they are taking on square with their pos. But shopify isnt interested in taking square customers free vs 600$ a year to start. and the only benefit that you get is your website items are on the pos.
Am I the only one who thinks that 50$ a month is rediculus?. Shopify is making money on the credit card transactions, the website hosting, and transaction fees. As opposed to square, who only collects fees from the credit card fees and no transaction fees.
There needs to be an option without .30 fees. For a few website orders a day no problem. For 200 pos sales a day not affordable. So now, I use my square, which I have to manually input items, for my sales and only use the shopify pos for items not in stock that I have to ship. or orders that are called in via telephone. But 50$ amonth isnt affordable for a dozen orders a month.
But this isnt the only problem that I have.
1. If I use this, then all of my simple cash transactions are commingled with my website orders.
2. What I really need this for is backend order entry , for shipping. there is no shipping option, and when you look up the order in dashboard it tells me that its not fulfilled, ok but it assumes that shipping isnt required.
I really dont think that shopify thought this through. All that they saw was that other pos systems charge money , but what they dont realize is that they dont make any other money other that their pos system. and they have very small cleint base.
the only systems that are succeeding are the free ones. and dont try to tell me that square isnt making any money. how much is 2.75% of 1 billion dollars.