MagicPay vs Square
In the last few years mobile payment processing companies became very popular among traveling merchants. It gives them the ability and convenience to accept credit cards on the spot using their iPhone, iPad, iPod Touch or Android operated device, wherever they go, without the need to write down any confidential numbers. One of the first companies on the market was Square, charging a very high discount rate of 2.75% per transaction, slowly but surely small companies broke their way into that market, one of them called MagicPay. There are a few differentiations between the two wireless payment processors, varying between swiped rates to monthly fees and customer service techniques. To the right is a chart comparing the two.
As the chart shows there are some major differences and a few similarities between the two wireless payment processors.
- MagicPay offers a better swiped card rate (which you save 1.05% per transaction with them, which is 38% savings in fees!) with a low monthly cost of approximately $12.95.
- Both of them offer a free card reader to their merchants, and no annual fee.
- MagicPay offers a Bluetooth operated card reader, that is very comfortable and easy to operate (if you choose to go with the MagicPay Pro plan).
- Customer service and support techniques have a major difference – Square does not have any customer service neither a support line for its customers, and if a customer has a technical or account issue they would have to contact them via email, which typically takes 24 hours for response. On the other hand, MagicPay offers a customer service and support phone line that would offer immediate assistance as well as email and online help.
- On Square accounts there is a deposit limit on manually keyed-in cards, which means that if you keyed in payments of over $2,002 per seven day period, the money will be on hold for the next week, as in MagicPay there is no such a limit.
Company |
MagicPay Premier |
Square |
| Swiped Rate |
1.70% |
2.75% |
| Keyed Rate |
3.70% |
3.50% + $0.15 |
| Card Reader |
FREE |
FREE |
| Annual Fee |
None |
None |
| Monthly Fee |
$12.95 |
None |
| Customer Service / Support |
Phone + Email + Live Online |
|
| Deposit Limit on Manually-Entered Payments |
Unlimited |
$2,002 Per Week |
Now let’s talk numbers, take Company A that has approximately $10,000 worth of credit card transactions every month, using Square as their mobile payment solution they would be charged $275 worth of fees. Take the same company and register it to MagicPay as their mobile credit card processor, Company A would only be assessed a total amount of $182.95 (1.70% + $12.95/month). What a difference! A short calculation will show you that by transferring to MagicPay Company A would save 33.5% in fees!
| Company | MagicPay | Square |
| Transaction Volume | $10,000 | $10,000 |
|
Fees Charged by Mobile Payment Processor |
$182.95 |
$275 |
We’ll let you make the choice
