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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