Merchant Chimp Vs. Square – Which Credit Card Processing Should You Choose?

July 10, 2021

Credit card processing can be very confusing, but it’s essential to understand it if you plan on getting merchant services. If you own a small business and you’re choosing between Merchant Chimp vs. Square, we prepared a breakdown of which one is better for credit card processing services.

Finding the best solution to accept credit card payments from your customers can take up a lot of time since many different options are available. If you started doing research and have a dilemma about whether you should pick Merchant Chimp or Square merchant services, we’re here to help. We compared the two to help you decide which one best fits your needs.

Why Should Small Businesses Choose a Credit Card Processor Wisely?

Have you been coming up with ingenious small business ideas lately? There are so many different types of businesses, and each one of them has different prerequisites when it comes to credit card processing. If you’re a sole proprietor or you own a micro enterprise, you should get familiar with the best credit card processing for a small business. Why is that? If you’re processing a low volume each month, each penny counts. Credit card transaction fees aren’t always easy to comprehend, so it can be easy for the merchant processing company to have hidden costs without you even noticing. Once you find a perfect provider, you will know what you’re paying for, and you will understand your monthly statements.

Merchant Chimp Vs. Square – Which One Has the Best Features for a Small Business

When choosing between these two credit card processing companies, there are some points that have to be considered. Square was one of the first to introduce the world to the type of processing called pay-as-you-go. The only thing you needed was a smartphone and a card reader that’s plugged into the audio jack. On the other hand, Merchant Chimp can help sole proprietorships and micro-enterprises cut their costs on credit and debit card fees with premium customer support. Let’s see what the main differences between these two are.

Who Should Use Square Merchant Services?

Having a Square merchant account means that there’s no monthly fee, and if you’re processing a low volume each month, Square is an attractive option. It has affordable chip card readers, predictable flat-rate pricing, and a lot of features. You can get started with no commitment, which is perfect for startups. With them, your account is a simple one, you will get to process cards offline, and there’s a free point-of-sale app for Android and iOS. However, their customer service isn’t available all the time. In most cases, it takes around 30 minutes to get a designated agent as they are a large corporation. Once you check Square merchant services reviews, you might find that some customers have an issue with the lack of professional support. Also, this option is never good for larger or medium-sized businesses.

Why Is MC a Preferred Option for Some?

If you’re considering applying for a merchant account, there are a lot of good reasons to do so. Not learning what merchant services are is one of the most common mistakes business owners make. That might lead you to a bad provider that won’t save you from overpaying credit cards, and you won’t know how to save your company from credit card fraud. MC also follows the PCI Compliance Guide rules, which maintains a high level of safety for each transaction, which is important for both customers and merchants.

Good merchant services for credit card processing will help you know that your account is stable, especially if you’re interested in opening a high-risk merchant account. You will have better customer service that’s available 24/7 and a direct line to the designated agent. There’s also a professional Back Office team that can help you on the spot without any reservations or waiting. MC also has First Data 24/7 customer service that can help you if you have any questions that our team can’t answer.

That way, nothing is left to chance, and everything will always be set up on time. Unlike Stripe, Square, and PayPal, MC has interchange fees, transparent pricing rates, low transaction costs, and a month-to-month agreement.

Understand the Pricing Differences for Chimp and Square Merchant Account

The difference between Square and Merchant Chimp isn’t just in the customer service but also in the pricing. If you’ve learned how credit card processing works, you’re probably familiar with MC and Square merchant services rates and other average credit card processing fees.

Credit Card Processing Fees You Can Expect With Merchant Chimp Vs. Square

Keep in mind that Square always has a flat rate of 2.6% + 30 cents per transaction, without any monthly charges. This can change only if there’s a special offer. Flat rate credit card processing is useful if you own a small store, for example, with up to $2-5k in volume, as the difference in rates doesn’t affect you.

On the other hand, Merchant Chimp has a monthly fee but can always guarantee a lower percentage and per-transaction fee than Square. The rate usually goes around 1.8-2.2% with 5-10 cents per transaction. This is good for medium- and large businesses with over $5k in volume as monthly fees don’t make any difference to them.

For example, $30 in monthly fees for a small business that has around 2-3 transactions every month is costly, and the difference in rates is as small as 1-2 dollars. Whereas, if you process more than $5k, $30 of monthly fees doesn’t affect you, but having a 2% rate instead of 2.6% can save up to $2k per month.

The same rate with flat pricing that Square provides can be seductive at first, as you think that one rate for all cards is better because you always know how much you are paying. In reality, things aren’t that simple – there are so many types of bank cards, and they all cost differently. A flat price is good only in theory, while the Interchange Plus program that MC offers is a much better option. This program provides fairness and considers all cards separately. That way, you can always see exactly how much you have paid on each and every one of the cards your customers used. If you use Square, you’ll have a single price for all the cards that cost differently.

Another example would be the wholesale rate of a Visa Card that is paid to the banks and the Visa association. That rate is around 1.6%, but with Square, you will pay 2.6%, which leaves Square with a 1% markup (profit). MC can provide a 0.20% markup (which is always the same), and instead of paying 2.6%, you will pay 1.8%. Of course, if the interchange (wholesale rate) is higher, then you will pay more. That means that if the wholesale rate is 2.2%, you’ll pay 2.4%.

There’s Also a Difference Between the Terminals These Two Businesses Offer

Square does provide a free POS system, but there’s a hidden disadvantage. By paying 2.6% of each transaction, you end up paying much more in rates. That’s how a $50 terminal becomes a $300 terminal. You should keep in mind that there is always a catch with free terminals. If you get one, you can be sure that you will be charged more somewhere else.

MC has a partnership with Clover terminals that have a lot of features and make running a business much easier. There’s an option to build your POS system just the way your business operates. You can use mobile and stationary devices that are customized to the needs of your retail shop, restaurant, or any service business.

There’s an option to get free terminals with MC as well, depending on the volume of the merchant. If not getting a free terminal is a deal-breaker, there’s a special offer. If the volume is good, MC will provide a terminal for free or as loaners (the client returns the hardware once they cancel the account, but in the meantime, they use it for free). The third option is for the client to purchase terminals in installments (up to 7 or 10 installments, so the client pays off the terminal slowly).

Merchant Services with Square and MC Have Different Procedures and Safety as Well

When you compare the simplicity of the two, you will see that Square is much simpler, and it takes much less time to get started. However, it doesn’t provide the same assistance as MC does. If you want a professional merchant provider, you’ll have to go by the law and provide all the documentation needed as you want encrypted and protected transactions. Square is notorious for freezing their customer’s accounts, which cannot happen with MC unless there are forbidden activities such as selling illegal items or substances. MC is a professional merchant provider, and that’s the reason why we require more documentation. Square is much simpler, but on the other side, much more unsafe.

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MC Knows and Serves a Lot of Industries

No matter what kind of company you own, MC will do everything to make your experience easy. Your customers will be satisfied because they can pay with any type of card, while you can be sure that you have the best service. MC offers a wide array of solutions that fit your needs, and each client that picks us knows that they’ll save 20-50% on your monthly rates. Feel free to contact us, send us a statement so that we can analyze your situation, and cut the costs you’re overpaying. Your dedicated agent will be at your service any time to make your experience even more pleasant.

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