As a customer facing business in the 21st Century and following the Covid-19 pandemic whereby the phrase ‘cash is king’ was laid to rest for the last time, it is essential for any growing business to be able to take card payments.
Digital payments have been catching up with cash as the preferred method for people to do business but recently the rate of card transactions being used to pay for services rendered by small businesses has surged dramatically.
In this article we detail the benefits of digital payments and look at your best options for taking payments.

3 benefits of adopting digital payments methods

1). Close the door to bad debtors

If you are a service provider with payment terms over a given period, you are running the risk of the customer refusing to pay for the services rendered, or only part paying and drawing out the payment terms unfairly and unjustly. If you are using digital payments, particularly card machines (such as sum-up, square and iZettle) you can take payment from the customer there and then.

So, whether you are a plumber, painter, podiatrist, or potter, you can have peace of mind that payment for your work is on its way to your account upon completion of the job.

2). Spend less time working in your business, so you can start working on your business

Digital payments will dramatically reduce your time spent working in your business doing menial admin. Say goodbye to difficult record keeping of cash payments and commutes to the bank to deposit cash payments received. With digital payments, you’ll have far less admin and can spend that time working on growing your business instead.

3). Keep up with your competitors and the world

Owing largely (but not wholly) to the Covid-19 pandemic, cash is now a far less popular transactional medium than it was 5 or 10 years ago. As a result, prospective customers are far more likely to have a card to hand than cash. If you treat card as your preferred payment method, you are more appealing and easier to do business with for customers and therefore reduce the risk of them looking for business elsewhere.

We’ve all been there; you see a sign noting ‘cash only’ and take your business elsewhere. Not due to poor quality of the items for sale or the poor customer service but because the convenience of a card payment was not available. This fact loses businesses nationwide innumerable sales every day. Don’t let yours be one of them.

So what are the best options for taking payments?

There are a sizeable number of card machine suppliers and payment receipt handlers out there, each with their own benefits and drawbacks, luckily, we have reviewed several of them on your behalf. For a quick overview, please see the comparison table below including our favourites.

Provider:

Set up cost/ device cost:

Monthly Fee:

Transactional Cost:

Works with Xero:

SumUp 3G

£99.99

N/A

1.69%-2.5% (Card not present charge)

No

TakePayments A920

N/A

£10.00+VAT

0.3%-2.5% (Subject to volume)

Yes

Zettle by PayPal

£19.00+VAT

N/A

1.75%

Yes

Square

£19.00

N/A

1.75%-2.5% (Card not present charge)

Yes

Worldpay

£19.00

N/A

1%-2.75%

Yes

Worldpay Simplicity

£4.99

N/A

Transaction fee dependent on volume

Yes

Dojo

N/A

£20.00

0.3%-2% +4p

Yes

Pros and cons of the card / digital payment options 

PRO’s:

  • Works with a SIM Card (no need to connect to a phone or tablet)
  • Can be used to set up an online store using the SumUp app
  • Includes an analytics platform to help with business growth, albeit rudimentary
  • Contract free, only pay when you make a sale and leave when you wish

CON’s:

  • Simple reporting when compared to other platforms
  • No hospitality-specific features
  • Xero compatibility still in development

Link to the SumUp website is here.

PRO’s:

  • Specialist onboarding/ adopting team, able to support with set up and user queries
  • No fees to join or leave
  • High quality customer service (consistently positive reviews on Trustpilot and other platforms)

CON’s:

  • Card machines can only integrate with EPOS at today’s date
  • Charges for chargebacks and refunds

Link to the Takepayments website is here.

PRO’s:

  • Compatible with android and iOS
  • Eight-hour handset battery life
  • Processes transactions quickly
  • Supports a huge range of payment methods including AmEx

CON’s:

  • Must be connected to a phone or tablet, no independent SIM capacity.
  • Doesn’t offer a feature for online sales via a store through the app.

PRO’s:

  • Card reader payment software offers lots of integration
  • High Levels of security for peace of mind.
  • No monthly fees or contracts 

CON’s:

  • Third-party app integrations incur additional charges.

Link to the Square Card Reader website is here.

PRO’s:

  • Popular with small businesses as easy to use
  • High levels of security
  • Includes its own payment portal

CON’s:

  • Customer service is quite poor, definite room for improvement

Link to the Worldpay card reader website is here.

PRO’s:

  • Excellent customer support
  • Fast terminals, very responsive
  • High quality app for mobile, this makes account management quick and easy
  • Guaranteed next day pay-outs

CON’s:

  • Must enter a 6-month contract so may not be so good for start-ups
  • Can be difficult to switch merchants, though they offer support in this regard

Link to the Dojo card reader website is here.

Get in touch to select the right option for your business

The above list is not exhaustive. Your bank may provide a transaction processing service and handset or if your website is with Shopify, they also have an option. However due to these being very specific we haven’t included these here.
If you’re unsure which option to choose and which is right for your business, get in touch with your Client Manager or give us a call on 01474 853 856 or email enquiries@a4g-llp.co.uk.