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 methods1). Close the door to bad debtorsIf 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 businessDigital 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 worldOwing 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£99.99N/A1.69%-2.5% (Card not present charge)NoTakePayments A920N/A£10.00+VAT0.3%-2.5% (Subject to volume)YesZettle by PayPal£19.00+VATN/A1.75%YesSquare£19.00N/A1.75%-2.5% (Card not present charge)YesWorldpay£19.00N/A1%-2.75%YesWorldpay Simplicity£4.99N/ATransaction fee dependent on volumeYesDojoN/A£20.000.3%-2% +4pYesPros and cons of the card / digital payment options SumUp 3G Card Reader: The best on the market for low transaction feesPRO’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 appIncludes an analytics platform to help with business growth, albeit rudimentaryContract free, only pay when you make a sale and leave when you wishCON’s:Simple reporting when compared to other platformsNo hospitality-specific featuresXero compatibility still in developmentLink to the SumUp website is here. Takepayments A920: The best on the market for supportPRO’s:Specialist onboarding/ adopting team, able to support with set up and user queriesNo fees to join or leaveHigh quality customer service (consistently positive reviews on Trustpilot and other platforms)CON’s:Card machines can only integrate with EPOS at today’s dateCharges for chargebacks and refundsLink to the Takepayments website is here. Zettle by PayPal: Best on the market for payment features.PRO’s:Compatible with android and iOSEight-hour handset battery lifeProcesses transactions quicklySupports a huge range of payment methods including AmExCON’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.Link to the Zettle website is here. Square Card Reader: Best on the market for fast growth, startups.PRO’s:Card reader payment software offers lots of integrationHigh 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. Worldpay card reader: Best on the market for securityPRO’s:Popular with small businesses as easy to useHigh levels of securityIncludes its own payment portalCON’s:Customer service is quite poor, definite room for improvementLink to the Worldpay card reader website is here. Dojo card reader: Best on the market for flexibilityPRO’s:Excellent customer supportFast terminals, very responsiveHigh quality app for mobile, this makes account management quick and easyGuaranteed next day pay-outsCON’s:Must enter a 6-month contract so may not be so good for start-upsCan be difficult to switch merchants, though they offer support in this regardLink to the Dojo card reader website is here.Get in touch to select the right option for your businessThe 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.Other posts of interest 27th August 2020The ten vital ingredients for a successful recovery in your new normal Read more 29th February 2016What is the Cloud? Read more 17th June 2024Tax and financial planning in a changing political landscape Read more See more articles