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

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021