Introducing Square Instant Deposit

[NYJimbo]

Just got this in my email from Square:

Introducing Square Instant Deposit
Get your money faster than ever before.

There’s now another reason to accept credit cards with Square. Take a payment on your free card reader, and deposit your funds in seconds with Instant Deposit.* Deposits can be made anytime—even late at night and on weekends and holidays. You’ll have faster access to funds to cover expenses, pay employees, and grow your business.

Each deposit costs 1% of the total deposit amount. That’s it. All account balances greater than $50 and less than $2,500 are eligible for Instant Deposit.

- Enable Instant Deposit in your Square Register settings.
- Enter your debit card number and Square password to link your bank account.
- Deposit your funds instantly—even on weekends and holidays.
- Pay just 1% of the total deposit amount.

*Instant Deposit is currently available for most debit cards. Funds are usually available in seconds, but are subject to your bank’s availability schedule.

Get started:
https://squareup.com/login?enc=0&return_to=/dashboard

Paypal has had this for years and now Square has it. I haven't tried it yet but it looks like
another great thing for small business owners who take CC's.

The email doesn't really explain how this works and it links you to your account online but basically you use your "register" (in my case a Kindle Fire HDX), click the three bars on the top left, then click "Settings", then click "Instant Deposit". Swipe it to "ON" and then "Link" and your card should link.

 

[NYJimbo]

Follow up:

I just linked my banks debit card to my account and got this email from Square:

Hello xxxxxx.,

Your debit card ending in xxxx has been successfully linked. When you use Instant Deposit, your money will be sent to the bank account connected to this debit card.

Instant Deposit enables you to deposit your balance immediately—any time, any day. To make an instant deposit, tap the three horizontal lines at the top-left corner of the Register app, then tap Activity.

Visit the Square Support Center for more about Instant Deposit: https://squareup.com/help/us/en/article/5405

Thanks,
The Square Team
squareup.com

© 2015 Square, Inc. All rights reserved.​

 

[HCHTech]

So Square or Paypal, as the case may be is basically loaning you the money for the period of the normal float, yes? So if you normally have a 1 business day float, you're paying 1% to get your money one day faster. This 1% is on top of the regular transaction charge for Square, of course. If you take a CC payment on Friday, then you wait until Monday to get the $ normally, so in that case, you would have it 3 days earlier. For Saturday, you would normally get it Tuesday, so 3 days earlier. For Sunday, normal is Tuesday so 2 days earlier.

So, to figure the cost, let's presume you take all of your cc swipes evenly spread over the week. That means the average "normal" float would be equal to (1 + 1 + 1 + 1 + 3 + 3 + 2) / 7 = 1.71 days on average. With the instant deposit service, you're getting a 0 day float, which is 1.71 days sooner than average. For the privilege, you're paying 1%. 1% / 1.71 * 365 = an equivalent annual rate of 213.5%.

If you financed $20,000 on a new car for 5 years at 213.5%, your monthly payment would be $3,558.53 per month. I'm just going to leave this here.

 

[NYJimbo]

So Square or Paypal, as the case may be is basically loaning you the money for the period of the normal float, yes?

You are overthinking this and your math is based on compounding. The instant deposit is a option. That is you do your sales and then can click the button to move it instantly but you dont have to. Besides, many of us need the money to move around faster because much of what we do is just in time. Likewise most of my work is 99% profit and 1 percent is not going to affect me.

Your $20,000 car would actually cost you $20,200. The fee is transactional and would be fixed and spread out for five years and would not be based on any percentage annual or monthly. $20,200 if you paid it back in one day or in 5 years.

Your reply reminds me of an episode of Seinfeld where Uncle Leo was supposed to give Jerry's dad $50 back in the 1950's or something. His dad started calculating the interest and became enraged about how much money he lost on not getting the $50. It doesn't work that way.

 

[cypress]

Thank you for this. Great news. I have a client that pays me with Square and since I take the payment after 6pm it usually takes about 2-3 days to get into my bank account. Be nice to have this instant now.

 

[RMSTECH]

Great tip @NYJimbo ! I used square pretty heavily in the beginning, but when I started using RepairShopr, I moved to stripe for most things since it's integrated pretty well with the invoicing system. I'll have to start using Square for my larger invoices, maybe.

 

[Mercenary Roadie]

I refuse to pay anyone money let alone a percentage to get my money from them. If you are so strapped that you need to have it now then you have a bigger problem. My jobs can be in the thousands of dollars and on a $5000.00 job I'm not give up an additional $50.00 just to have it today on top of the CC processing fees that they charge.

 

[NYJimbo]

I refuse to pay anyone money let alone a percentage to get my money from them. If you are so strapped that you need to have it now then you have a bigger problem. My jobs can be in the thousands of dollars and on a $5000.00 job I'm not give up an additional $50.00 just to have it today on top of the CC processing fees that they charge.

Then it's safe to say you do not use Square or Paypal for your transactions, so why knock this offer for people who need it ? If your jobs are $5,000 then you don't need to move money around, but many techs here get $100 jobs and need to be able to move money around quickly for the next job. If John Q Techguy does a job at 9am and gets paid $500 via credit card and needs $250 for a job a few hours from now and he is tight on funds, this can help him.

Square and Paypal would probably not be for techs who do $5,000 repair jobs, but it would be for people who do much smaller jobs.

 

[fencepost]

I refuse to pay anyone money let alone a percentage to get my money from them.

Yah, that's the attitude that leads to "We don't accept credit cards, we'll mail you an invoice, you mail us a check." which leads to "oh, we do checks every other Friday," and sometimes to "We haven't received your payment yet."

I'd rather have online invoicing and payment via credit card even if it costs a bit of $$.

 

[HCHTech]

To each his (or her) own, of course. I just think people need to go into things with their eyes open. You can bet that Square has done this math and that's why they are offering the service. It's win win for them. It's ok for the tech, but it has a cost. And that cost is a lot more than it might seem. If, say, you had a business line of credit and used that instead, it would cost you a hell of a lot less than their offer. That's all I'm sayin.

 

[cypress]

Great tip @NYJimbo ! I used square pretty heavily in the beginning, but when I started using RepairShopr, I moved to stripe for most things since it's integrated pretty well with the invoicing system. I'll have to start using Square for my larger invoices, maybe.

Completely forgot about Stripe being integrated with Repairshopr.