Features

How to open your business up to card payments

The UK’s smallest businesses are missing out on valuable business or wasting time chasing customers for payment because they don’t accept debit- or credit-card payments.

954-card-payments
Card readers are available from around £29

The UK's smallest businesses are missing out on valuable business or wasting time chasing customers for payment because they don't accept debit- or credit-card payments.

New research from payments company Square suggests 40% of micro businesses firms with fewer than ten employees don't have the facilities they need to accept card payments.

Thankfully, fierce competition in the payments sector means there is plenty of affordable choice. In practice, the right option for your business will depend on several factors. You typically pay an upfront charge for the equipment you need, such as a card reader, plus a transaction charge, which could be a fixed cost or a percentage.

This means the cheapest deal will depend on how many transactions you process and how much they are for. In addition, think about whether you need a card payments service just for face-to-face transactions, or to take payments by phone or online as well. Not every provider caters for each of these needs.

For a face-to-face card reader, iZettle currently charges £29 for one of its terminals with capped transaction charges of 1.75%. Sumup's device also costs £29 and charges an uncapped 1.69% transaction charge; it can be used for payments by phone. Square charges £29 for its device and offers e-commerce options as well as phone-based payments and face-to-face transactions, with a varying range of transaction charges.

Most Popular

The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
What would negative interest rates mean for your money?
UK Economy

What would negative interest rates mean for your money?

There has been much talk of the Bank of England introducing negative interest rates. John Stepek explains why they might do that, and what it would me…
15 Oct 2020
Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020