Ahh upon further investigation I discovered that the catch is that businesses wishing to do over $21K in sales per month are ineligible.
So the product is only for businesses who meet all three of the following criteria:
1) small enough to not need over $21K per month of credit card charges
2) low enough chargeback risk that Square accepts/keeps them as a client
3) are currently paying more than $275 in fees per month with their current provider.
So bottom line this is a great marketing pitch but not really useful to the vast majority of companies in the real world. The odds of #2 and #3 both being true are basically nil for businesses small enough to meet #1.
Your initial reading is incorrect. Past 250,000/yr, you go back to the normal 2.75% rate; you remain eligible up to that point, and that point is not determined monthly but annually.
