Coffee shops like Square because it offers one of the lowest rates for tiny under $10 purchases, not because it&#x27;s &quot;hip&quot;. It&#x27;s a flat 2.75% without any additional $0.10-0.30 fee like some other processors. So a $4 coffee costs the merchant just 11 cents to charge.<p>Unfortunately this is because Square actually loses money on these sales, which you can confirm by looking at the public available interchange rates for Visa&#x2F;MC.[1] Credit transactions start at around $0.11-12, and debit is a whopping $0.22.<p>There&#x27;s other reasons too like maybe they find their bundled software easy to use or their signup process has less hassles, but they are practical reasons.<p>[1] <a href="https:&#x2F;&#x2F;usa.visa.com&#x2F;dam&#x2F;VCOM&#x2F;download&#x2F;merchants&#x2F;visa-usa-interchange-reimbursement-fees.pdf" rel="nofollow">https:&#x2F;&#x2F;usa.visa.com&#x2F;dam&#x2F;VCOM&#x2F;download&#x2F;merchants&#x2F;visa-usa-in...</a>