Having a low price can paradoxically mean not lowering it in the face of competition. When Amazon undercut our 2.75 percent rate with a rate of 1.95 percent, we did not respond. Our price was set as low as we could manage while still maintaining our business. If we could have been charging less, we would have been. The attacks of even the world’s most feared competitor did not change that calculus. Imagine what would have happened if we had matched Amazon’s price only to raise it back up once Amazon abandoned the market: our customers would never trust Square again.
