Are there any free card readers for small businesses?
By Anna Jordan on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs
The short answer is no, but there are some lower-cost options out there.
When thinking about costs, consider your monthly fees along with your transaction fees, set-up fees and any other charges that may be hidden in the small print.
We’ll be taking a look at some of the cheapest card readers for your small business and whether you’re better off renting or buying.
Should I buy or rent a card reader?
Purchase
Pros
- Purchasing card readers means that you have them on standby – handy for unexpectedly busy times
- If you’re likely to use the terminal again, it’ll be worth purchasing
- No worry about extra fees beyond transaction fees
- Easier to switch between merchant service providers
Cons
- The machine may become obsolete over time and you’ll have to fork out for a new one
- Any purchases and repairs are your responsibility
Rental
As some of the contracts below suggest, rental card readers are more suitable for seasonal or pop-up businesses.
Pros
- Can fill demand at busy times such as Christmas
- Providers are good at meeting requirements at short notice
- Rental units are more robust as they can passed between users and so are expected to be better able to handle knocks
- If something goes wrong, your provider can sort it out quickly
Cons
- There may be hidden fees such as set-up
- You have to keep the card readers in an acceptable state of repair
The 8 cheapest contactless card reader deals out there
How much you pay will come down to your turnover, what card reader you have and what kind of transactions you take. Let’s take a look at the cheapest deals.
>See also: Why businesses should go cashless: pros and cons
Purchase
Square
Reader price: £19 + VAT (for first readers, then subsequent readers are £25)
Monthly fee: None
Transaction fee: 1.75 per cent per transaction
Features:
- Connect to Apple or Android
- Next day settlement
- Take payments while offline
- Custom pricing available
Tide Card Reader
Reader price: £159 + VAT
Monthly fee: None
Transaction fee: From 0.79% + 3p
Features:
- Lifetime free 4G connectivity
- Accept Contactless, Chip + Pin, Digital wallets
- A compact device that allows you to take both in-store and mobile payments
- Funds typically settled within three workgin days
TakePayments
Reader price: Custom depending on model (contact provider)
Monthly fee: None
Transaction fee: between 0.3%-2.5% + flat fee
Features:
- Shorter contract lengths
- Tailored pricing model
- No setup or exit fees
- Payments settled next working day
SumUp Air
Reader price: £19 + VAT (for first reader only, then £25)
Monthly fee: None
Transaction fee: 1.69 per cent per transaction (If you use SumUp’s business account as a payout account, you can get a 1.49 per cent transaction fee until the end of the next month you booked from)
Features:
- Smartphone connectivity
- Unlimited free bank transfers on incoming and outgoing payments
- Process over 500 sales on a single charge
- All-day battery life
PayPal Reader
Reader price: From £29 + VAT
Monthly fee: None
Transaction fee: 1.75 per cent per transaction, 1.75 per cent for PayPal and QR codes, 2.5 per cent for Payment Links, 2.5 per cent for Zettle invoices
Features:
- Integrates with Adobe Commerce and BigCommerce as well as other platforms
- Sell and accept gift cards
- PayPal claims you can switch the reader on and start taking payments within just 7 seconds
- 8-hour battery life
>See also: Best payment apps for small businesses
Lopay
Reader price: £24 plus P&P and £49 plus P&P for additional card readers
Transaction fee:
- 0.79 per cent for weekly payment
- 0.99 per cent next day
- 1.79 per cent for instant payment
- One per cent to the above for American Express and international payments
- 0.25 per cent for payments via Point of Sale
- 0.49 per cent for payments and 0.69 per cent for subscriptions.
Features:
- Choice of payments done instantly, next day or weekly
- Smart tipping feature
- Export reports to add to your preferred accounting software
Rental
Tyl by Natwest
Reader price: From £13.99 + VAT
Transaction fee: Between 1.39 per cent and 1.99 per cent + 5p (more for American Express transactions)
Features:
- Eight hours of battery life on one charge
- Use Tyl Portal at no extra cost; 5.99-inch glass touchscreen
- Fingerprint recognition
- Setup and start taking payment within 48 hours
Barclaycard Flex
Ideal for start-ups and small businesses
Monthly fee: £15 a month (excl. VAT)
Transaction fee: 1.6 per cent per transaction
Features:
- Switch between Bluetooth, GPRS, Wi-Fi and mobile data networks
- Up to 700 sales a day on a full charge
- Tailored transaction fees depending on business turnover
- Payments can be in your account as soon as the next working day (if they’re taken before 9pm)
Dojo Go
Reader price: Available for £15 a month if you have over £100,000 turnover (£39.99 per month if your turnover is over £100,000). Or pay a one-off fee of £79.
Transaction fee: 1 per cent on transactions over £4k in takings per month
Features:
- Receive your takings the next day
- Dojo may pay up to £3,000 in exit fees to your previous provider
- Instant fraud detection
- Point-to-point encryption
Which card reader should I buy?
Which low-cost card reader you go for is up to you but remember that factors beyond price come in here too. Think about your functionality needs such as tableside payments if you’re a restaurant or increased Amex payment fees if you take a lot of payments from customers who use American Express.
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