Square Drops Transaction Fee

Square, the startup that lets mobile vendors take credit card payments through their phones has taken a jab at competitors by dropping its $0.15 per transaction fee.

Now Square says it will charge a flat 2.75% of any transaction, regardless of size. The goal is to make payments easier for users and combat hidden fees commonly seen in the credit card industry, according to General Manager Keith Rabois.

“In the end accepting payments should be as easy as using a microwave,” Rabois told TechCrunch.

Competitors such as Intuit’s GoPayment system charge the flat 15 cent fee per transaction in addition to taking a percentage cut.

Payments via the internet have necessarily been growing less and less complicated, and more and more mobile. Shoppers can send and receive payments via PayPal on their phones, they can send money via Twitter, and a technology called Near Field Communication will let people zap money into the pockets of vendors by simply waving their mobile devices over a receiver.