CDG Commerce vs Square: which costs less, and who each one fits

The worked example: $20,000 a month

Assume a business doing $20,000 a month across 333 transactions, so an average ticket of $60. Run it twice, once all in person and once all online, on Square's free plan.

Interchange is the part of every card fee that goes to the card-issuing bank. It is set by Visa and Mastercard, not by CDG, and it varies by card type. For this example we assume a blended consumer credit interchange of 1.55% + $0.10 for card-present sales and 1.80% + $0.10 for online sales, plus network assessments of 0.14%. Those are mid-range figures from Visa's published schedule. Rewards cards cost more, regulated debit cards cost far less, so your real interchange will differ. Square's flat rate already includes interchange, which is the whole point of the comparison.

In person

	CDG Interchange Plus	Square Free
Interchange (assumed)	$310.00 + $33.30 = $343.30	included
Network assessments (assumed)	$28.00	included
Processor markup	0.30% + $0.10: $60.00 + $33.30 = $93.30	2.6% + $0.15: $520.00 + $49.95 = $569.95
Monthly total	$464.60	$569.95
Effective rate	2.32%	2.85%

CDG comes out about $105 a month cheaper, or roughly $1,260 a year, before hardware. On Square Plus at 2.5% + $0.15 the processing gap narrows to about $85 a month, but Plus itself costs $49 a month per location, so the total gap widens again.

Online

	CDG Interchange Plus	Square Free
Interchange (assumed)	$360.00 + $33.30 = $393.30	included
Network assessments (assumed)	$28.00	included
Processor markup	0.35% + $0.15: $70.00 + $49.95 = $119.95	3.3% + $0.30: $660.00 + $99.90 = $759.90
Monthly total	$541.25	$759.90
Effective rate	2.71%	3.80%

Online the gap grows to about $219 a month, or $2,620 a year. That is because Square's free plan charges 3.3% + $0.30 for Square Online and invoice payments; only payments taken through Square's API get 2.9% + $0.30. If you are on the API rate or on Square Plus, the gap is about $139 a month, still $1,660 a year.

What changes the answer

• Low volume. Under a few thousand dollars a month the difference is tens of dollars, and Square's zero setup time and $59 reader win on convenience.
• Very small tickets. Interchange has a fixed per-transaction component too, so the gap narrows as tickets shrink. At a $12 average ticket in person, CDG is still marginally cheaper under our assumptions, but the margin is small enough that hardware and software preferences should decide.
• Debit-heavy sales. Regulated debit interchange is 0.05% + $0.21. On interchange plus you keep that saving; on Square's flat rate you do not. A grocery, convenience, or fuel business with heavy debit use gains more from CDG than the example shows.
• Rewards-heavy sales. Premium rewards cards carry interchange above 2%. Interchange plus passes that through, so a luxury retailer sees a smaller gap than the example.
• Nonprofits. CDG publishes a nonprofit markup of 0.25% + $0.10. Square has no nonprofit rate.
• ACH. Square publishes 1% with a $10 cap on invoice ACH, which is cheap for large invoices. CDG does not publish an ACH rate on its site; ask for it on the quote call.

Where they differ beyond price

Underwriting and holds. CDG underwrites you before approval, which is why it takes a few days. Square approves instantly and reviews later. Its payment terms allow it to delay payouts, require a reserve that it can raise or remove at its discretion, and suspend the account if you do not supply documents on request. Merchant Maverick reports that funding holds and sudden deactivations are the most common Square complaints. If your business has any of the triggers automated risk models dislike, high tickets, pre-orders, a new category, seasonal spikes, a dedicated merchant account is the safer footing.

Software. Square's real product is its software: point of sale, inventory, appointments, payroll, an online store builder, loyalty, and text marketing, with the deeper features gated behind Plus and Premium. CDG gives you a gateway, a virtual terminal, recurring billing, and invoicing, and expects you to bring your own store platform or POS if you need more.

Gateway. CDG includes Quantum or Authorize.Net with no per-transaction gateway fee, which matters if you already run a site or software that integrates with Authorize.Net. Square only works with Square's gateway and the platforms that integrate with it.

Support. CDG describes its support as 24/7/365, U.S.-based, and in-house, and it applies to every customer. Square's plans page says free-plan sellers get phone support on weekdays from 6 to 6 Pacific for their first 90 days only, Plus sellers get those hours indefinitely, and only Premium gets 24/7. Chat with a live agent runs weekdays during the same hours.

Hardware. Square's hardware is a strength: the $59 reader, $299 Terminal, $149 Stand, $399 Handheld, and $899 Register are well designed and priced for small sellers, with monthly financing. CDG places a countertop terminal for $79 a year and sells a $99 mobile reader, which is fine for a counter or a service business and not a fit for a multi-lane retail floor that wants Square Register.

Contract. Both are month to month with no early termination fee, though CDG does not publish its terms on its own site and Merchant Maverick reports them. CDG's wholesale membership tier, for $200K a month and up, is billed annually, which is the one place a commitment appears.

Choose CDG Commerce if

• You process $10,000 a month or more and want the markup on every statement line
• You sell online through your own site or software and would otherwise pay Square's 3.3% + $0.30
• You take a meaningful share of debit cards
• You want a gateway you can point other software at, especially Authorize.Net
• You would rather spend three days on an application than risk a hold after the fact
• You want phone support without paying $149 a month for it
• You are a U.S. nonprofit and want the published nonprofit markup

Choose Square if

• You are under a few thousand dollars a month, or just starting
• You want the point of sale, appointments, inventory, or online store as much as the processing
• You need to be taking cards this afternoon
• You send a lot of large invoices paid by ACH and want the $10 fee cap
• You sell outside the United States

Frequently asked questions

Is CDG Commerce always cheaper than Square? No. Below a few thousand dollars a month the difference is tens of dollars, and Square wins on setup time. Above $10,000 a month, CDG's published markup usually wins by $100 to $200 a month on Square's free plan, more if you take a lot of debit, less if you are on Square Plus or the API rate.

Can I get a quote from CDG without applying? Yes. The quote form asks for your name, email, phone, and business type, and a CDG representative calls to ask about volume and how you take cards. You see a rate sheet before you apply.

Does Square negotiate rates? Square offers custom pricing for sellers above $250,000 a year. Below that, the published plan rates apply.

What happens to my Square hardware if I move to CDG? Square hardware only works with Square. You would use CDG's placed terminal or mobile reader, or a POS system that runs on a Quantum or Authorize.Net gateway.

Which one is safer for a new business category? CDG, because underwriting happens before approval and a person reviews the account. Square's automated reviews are where new or unusual businesses most often run into held funds.