Thanks for sharing this valuable information with the community amspcs!
I do work for a credit card processing company so this is pretty interesting. We'd been talking about the flat-rate strategy and whether it was good or not for businesses. While it made the costs more predictable, in some cases it made them higher. It basically had merchants trading predictability for value. I'll have to check with my business contacts to see if they have heard about this.
Credit card processing aggregator "Square" has announced discontinuation of it's flat-fee pricing model, effective January 2014. Once touted as a revolutionary money-saving pricing concept, Square has basically come clean and admitted it wasn't really working and, instead of saving dollars, it actually inhibited growth of small businesses. Full details on our blog post http://www.merchantservices-help.com/blog/square-discontinues-flat-fee-pricing/