Square has hiked up the rates on one of its newest products

Square, the payments company run by Jack Dorsey that went public last week, has increased rates on its Cash for Business product, Re/Code reports.

When Square Cash for Business launched in March the company charged a 1.5% payment processing fee, below the average of 2.75% that other companies charge for a similar service. The fee was then raised to 1.9% and now sits at 2.75%.

Square Cash for Business works just like the personal version of the product, which gives a user a cash.me domain and means anyone can send them money.

Square was trusting businesses to sign up for the Cash Pro account which had the 1.5% charge (the consumer version has no fees). However, the higher fees of 2.75% may put off many businesses who saw Cash for Business as a good deal.

Re/Code reported that Jack Dorsey described Square Cash as “show[ing] a path” for the company, which is currently valued at $US4 billion (£2.6 billion) and is looking to grow in a diverse range of areas.

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