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re: Using Square to pay off non-CC accepting debts, earning rewards, etc.

Posted on 1/20/13 at 2:29 pm to
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/20/13 at 2:29 pm to
Not quite, you're missing an important point. There is no "Square" account that holds money, the moment you swipe your card money gets sent directly to your bank account and Square takes a cut. So after you do the swipe, you owe $5000 on your CC and have $4862.50 ($5000 - 2.75%) in your bank account. There is nothing for you to get from Square, you have simply paid them $137.50 to get a cash advance.

This can be okay if you have a low CC rate, because now you write a check to your loan. If the loan rate is higher enough to cover the difference between the CC rate and the 2.75%, this is fine so long as you pay the CC back later before the rate expires. You're just paying a lower rate and paying Square a 2.75% fee to be able to.

Like I said in the other thread though, I think it's better to just charge normal living expenses on your card and pay the minimum. That way you aren't paying 2.75% to Square. And no matter what, always pay the minimum monthly balance on the due date, and be sure you have the whole thing paid off by the end of the teaser period.

Yes, this is some work which is why it probably isn't worth the effort unless you're talking about saving a grand or more.

ETA: I do have a Square and use it regularly.
This post was edited on 1/20/13 at 2:33 pm
Posted by lynxcat
Member since Jan 2008
24202 posts
Posted on 1/20/13 at 3:04 pm to
2.75% is too much. I hope another competitor comes into this arena to make them more reasonable for personal use.
Posted by Teddy Ruxpin
Member since Oct 2006
39617 posts
Posted on 1/20/13 at 6:26 pm to
Ya, i called it square account to keep the variables separate for discussion purposes, but it does seem at present, outside of having an introductory period that allows you to carry balance, any benefit must be realized within the month youre using it, and at that point there is little benefit for the trouble.

If that rate geta closer/under 2% i believe the math works out as a benefit if you get 2X rewards. Hopefully that day comes soon.
Posted by Teddy Ruxpin
Member since Oct 2006
39617 posts
Posted on 1/20/13 at 6:45 pm to
Ya, i called it square account to keep the variables separate for discussion purposes, but it does seem at present, outside of having an introductory period that allows you to carry balance, any benefit must be realized within the month youre using it, and at that point there is little benefit for the trouble.

If that rate geta closer/under 2% i believe the math works out as a benefit if you get 2X rewards. Hopefully that day comes soon.
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