Actually, any single transaction over $400 was processed at 2.75%. All transactions over a monthly limit of $21,000 was processed at 2.75%, which equals a p.a. amount of around $250,000 a year. So this is essentially a huge blow to the small businesses (restaurants, food carts/trucks, pedicabs, etc etc). And they're selling it as a way for businesses to save money, by keeping the same 2.75% they've always charged per swipe. Oh, and the restaurant I managed (a small hole-in-the-wall) switched to Square's monthly plan because it saved us around $500 a month in processing fees vs phone or broadband based machines. Now I'm going to have to go back to that restaurant, I guess, and help them find a new solution - restaurants are low margin and our owner barely makes a hundred bucks a month of the restaurant, after paying food costs, rent and employing 11 people.