Advertisement
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.

Advertisement - Article continues below

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.

Advertisement
Advertisement

Most Popular

Don’t despair on dividends – these companies could be set to bring them back
Income investing

Don’t despair on dividends – these companies could be set to bring them back

The value of dividends paid out by UK stocks has plummeted this year as companies “rebase” their payment policies. But things could soon start to look…
6 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”
Investment strategy

The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”

Merryn talks to economist and author Andrew J Scott and discusses how we can profit from the "longevity dividend" as we live longer; why we need to re…
6 Aug 2020