Taking card payments wen out and about

[AndyPandy]

All of our Business Client transactions so far involves issuing an invoice and taking cheque, bank transfer or cash on the day (I run a training company). We have a PayPal account for the odd time someone wants to pay that way (twice in the last year).

We're running a PR event and want to take card payment on the day to boost bookings. If it works well, we could repeat the event elsewhere, but not that often so I am looking at a system with no monthly costs, but in exchange accept that we would have to buy the terminal and possibly pay higher transaction costs.

So, what system?

The established players require you to create a Merchant Account and the terminals look expensive to rent. Fine if you have lots of transactions (e.g. restaurant) but not for us. The new Upstarts use Apps linked to your 'phone and pay directly into your Bank Account (or PayPal for PayPal Here).

Based on a quick Google search, I've found SumUp, SquareUp, Paypal Here and iZettle

On the face of it, PayPal seems a bit more expensive per transaction, but you do have the brand name. The rest seem to be much of a muchness with similar transaction fees and similar prices for the terminals, although iZettle was the only one that I had heard of previously.

Anyone got any experience of any of these methods - good or bad - or any other recommendations. Do people have trust issues with customers when being presented with a plastic box and punching in PINs into your 'phone?

[RedSnapper]

I'm associated with a large group of artists/makers (about 250) who almost all sell at shows around the country where these sort of devices are pretty much obligatory these days. If you took a survey across the whole population of them you'd get pretty much equal advocation for each one.

The main issue is connection - they use the broadband connection from your phone/tablet so you need either wifi or a reliable data signal.

Personally I use iZettle and find it very easy and intuitive. Payment is fast and rates low (1.75% currently). Rates have been trending down in the fight for business but seem to have settled now.

We used to use a more traditional chip and pin machine. It had much lower headline transaction rates but the rental was high and there was a minimum £15pm transaction fee so not so cheap overall. The iZettle has saved us a lot.

We, and many others, regularly sell work in the high hundreds to low thousands and have no problem with trust issues. Many people are very used to them. They are becoming very popular in high street retail outlets so they are seen all over.

[dspp]

iZettle is what my friends in these sorts of businesses all use and are happy with. regards, dspp

[AndyPandy]

iZettle it is, then. Concurs with mine and my fellow Director's thoughts. Ordered and on its way.

Note to self: proof read title as well as body of message.

[midnightcatprowl]

Might just be of interest that since retiring from running a high street shop I'm now involved on a voluntary basis with something which involves selling and though not specifically aimed at older people for one reason or another probably 60% or so of our customers are over 65 and lots are in their 70s, 80s and 90s.

I recently persuaded our management committee that it was time to throw off the shackles of the past and, particularly if we wanted to attract younger customers, to stop expecting people to carry cash or cheque books and invest in one of these little machines. We got an iZettle and it has been a huge success.

The amusing thing is however is that the biggest uptake has been among the really elderly who almost all go for contactless (unless the sale is too big) instead of chip and pin and who, rather than having doubts that it is not a 'real' card machine, seem to regard the iZettle as a trendy upmarket piece of kit.

Two or three of my helpers (all themselves in the upper age ranges) started muttering about maybe having to give up because they didn't think they'd be able to deal with operating the phone and iZettle, but in fact they've all taken to like ducks to water because it genuinely is a really simple system.

[stewamax]

iZettle and PayPal had until fairly recently roughly the same cost per transaction for low volumes. The chip-and-pin readers were (and are) also similar in function and price.
iZettle has now dropped its transaction price markedly. The main difference is that with PayPal you get a separate fully-fledged merchant account which can for example be used to make very simple refunds and to build online (website and smartphone/tablet) payment systems, whereas with iZettle you have some pre-built apps for certain types of business (currently small cafes through to restaurants).
PayPal is more a very comprehensive kit of tools whereas iZettle is much more specifically 'off-the-shelf EPOS'.

Horses for courses I think. PayPal gives you a huge amount of function and flexibility, but you pay for it. iZettle is cheapest for straightforward card payments.

[dspp]

iZettle are starting to drop their machine rates and % fees once you have a track record. They are quite aggressive. Just ask ... dspp

[stewamax]

Indeed. It seems that even at lowish transaction volumes or monthly total £value everyone - even big beasts like Worldpay - will negotiate; all except PayPal.
I guess PayPal rely on the fact that online (i.e. website or app) payment via a PayPal account is very popular and that they alone can provide a one-stop shop: everyone else who provides a merchant account ties the user into two accounts: theirs (for credit and debit card payment) and PayPal. These others like to give the illusion that there is only on account (theirs) but they are only providing a veneer. This is OK until the merchant wants to provide a refund (or, worse, a partial refund). And of course the merchant pays PayPal's fees as well.

Only if you are a Monster Beast like Amazon can you refuse to take payments from a PayPal account (there is or was a fudge using Amazon gift cards...)
The other Beast - eBay - was owned PayPal until 2015, hence PayPal's preferred payment status, but eBay's in-progress shift from PayPal to Adyen may shake PayPal's complacency and make it tout for business with more aggressive rates. They can already see relative minnows with very good rates such as Stripe eating away at their core business.

Card payment is a much more complex process that users give it credit (sorry) for, with major intermediaries such as the payment gateway provider, the card association (such as Mastercard), the payment issuer (a financial institution such as Lloyds) and payment acquirer (another financial institution). Fortunately, VISA and Mastercard are not themselves issuers or acquirers or they would be on the wrong side of Google-sized antitrust cases - something for which the world can thank a chap called Dee Hock (q.v.).