Thank you both. It seems there’s not much in it between Sum Up & Zettle.
The charges these companies charge are astronomical.
1.7-2.5% of turnover is a huge amount to be effectively ‘giving away’
The marketing from these companies is exceptional. “No monthly fees”…brilliant…so there surely has to be a catch?
Leaving the store with a £30 piece of plastic means that these companies have no guarantee of additional revenue…you may never use it.
So that’s why such huge fees are charged
As funds are taken from the payments you receive, before it even hits your bank, this resonates differently to receiving a bill/statement with charges to pay.
What rates are available?
Debit card rares 0.3-0.4% - over 4 times less
And what is this in exchange for?
A monthly fee of approx £20
So if your t/over was £40k per year you give these companies £700 vs £380 on contract.
Most people with these devices are giving away 40-50% for the sake of clever marketing and creating ‘fear’ around the word contract.
That is fine Chris but to rent for most of us is not practical. I had a quote of £49 per month. I don’t sell £40 per month so for me paying as I go is right for myself and my business. Surely all costs should be factored into,the cost of the item anyway.
The terminal I have costs £16 p/m that is the only ‘monthly fee’
My rates are then 0.32% for Debit cards = accounts for 85% purchases
0.6% Credit Cards = approx 15%
If you use the reader infrequently or under £15k per year, no different, stick with the ‘pay as you go’ options.
But on this thread there are folks talking about using square/sumup/izettle 5/6 days per week…that is crazy!
And if you factor the 1.75-2.5% transaction charges into your costs, you can do the same for a the £16 p/m
Mine is only used about once a year. Have used to send a customer an invoice. Will not use Stripe on here.
The only reference I see to someone using there card reader 5/6 days a week every week is when someone referred to their local burger van (and that burger van would not be selling on Folksy). I might use my card reader in 4 months of the year and process 8K per year using it (mostly on credit cards) so a pay as you go type card machine is the best for me.
I had a quick look to see how much the contract card machines costs and I note is that they normally have a sliding scale of fees - the more you use it the lower the transaction rate you pay - which is not ideal for those of us who use them sporadically or only process a few transactions per year. Also that a lot of the contract card machines are meant to be used within a certain space ie a physical shop so you either have a unit at a till point or you have units that waiting staff might carry around (operate on bluetooth from a central hub so have a limited range). Most of the people on this forum are going around craft fairs so taking card payments at different venues each week so need a fully mobile card reader and the contract mobile card readers that I have seen have much higher rental rates that what you have mentioned (£50+ per month).
But it is always worth reminding people that these other options exist so should their circumstances change (eg they set up a physical shop) they know to look into the alternative options to see if one of those is better suited to their new circumstances.
Not quite sure what your point is?
I said if you use it less than £15k per year, then stick with pay as you go from a cost perspective.
Contract fees are not on a sliding scale.
My terminal works via dual connection.
It connects to WiFi AND has a built in Sim card which connects to any network and means I will never not be able to process a transaction regardless of location.
No wires
I also think of my customers and the service offered to both me and them when considering my payment choices.
I want to look professional
I want my customers to feel secure
My PAXA920 also has additional functionality that the cheap bits of plastic aka izettle/square/sumup do not have.
I can scan QR codes, create customer loyalty cards, invoice, integrate with my accounting software and many, many other things for £16 per month. Things that save time and time = money.
I don’t need any other device to operate my terminal.
I don’t need to rely on the unreliable “Bluetooth” connectivity that randomly drops out.
So, whilst cost is important, how I present my business is far more important…and I have the peace of mind that I will never lose a sale.
I also had free tutorial and installation.
We all recognise the power of contracts in the majority of other areas of our life.
No problem signing up to 25 year mortgages as we recognise it offers greater value than renting. TV packages, mobile phones, broadband…not sure why everyone is so eager to cut corners when it comes to operating their business and getting paid!
My terminal was £16 p/m not £50 or £40 as has been stated.
Got it from www.cardpaymentsscotland.co.uk they’re obviously based in Scotland so I don’t know if they operate outside it.
The terminal I have is £16 p/m but is now showing as £19 p/m. Maybe you can negotiate. It’s more than worth it for everything else it does.