So, I’m setting up a bike shop (ironically finding myself spending far less time hanging about here since I started doing this!), and I’ll be needing a card reader.

The costs on these things are pretty opaque. I see that there are ones that have faster payment into my account but I don’t think that should be a huge issue in the grand scheme of things.

Can anyone running a small business give me any pointers to finding a good transaction fee? I don’t want to waste a load of time getting quotes etc., but I can also see that with the sort of turnover I’ll need to do, card payment fees will be a reasonably significant cost.

There are a couple of places that are transparent, but their fees seem quite high.

I’m not looking to get anything for nothing, but I don’t want to be losing out on thousands just for not finding the right solution.

Also any pointers on EPOS? Could just use a laptop and some software, but I’ll still need a till for cash transactions anyway…

I use iZettle card reader – low, clear fees and apart from the cost of the card reader no other costs. You need a smart-phone to run the app alongside the reader.

We worked out you’d need to be taking £1500 a month minimum to make a fixed reader worthwhile.

My wife uses SumUp and finds it really good. Easy to use and small transaction fee. I think they are all pretty competitive now as they have to be to make money.

Rate cards and costs are very clear with the below. They all have no long term contracts and will run on tablet or smartphone. Have used and would be happy to recommend all:

* iZettle – Bluetooth terminal
* Sumup – Bluetooth & stand-alone terminals
* Square – Bluetooth & stand-alone terminals.

If you have financial model with expected takings it is worth dropping each of the above a quick message and ask nicely what they can do to help you get setup while hinting at a free reader or reduced transaction fees. They may not drop fees initially but if you do decent volume they will in future once they start to see you takings. If a fixed terminal gets cheaper as your business grows message them and let them know.

All have basic epos functionality that will be more than enough in early days. Don’t spend extra money on this until you are sure you have cashflow, this includes taking pro options from the above providers.

Good luck with the business.

We worked out you’d need to be taking £1500 a month minimum to make a fixed reader worthwhile.

If I take £1500 a month I’ll be making a loss, so it sounds like I might want to get in touch with people!

Cheers so far.

When our local market went contactless for COVID pretty much all of the traders ended up with iZettle.

My local artisan micro pub has a one that works via mobile phone, dunno what sort, probably one of the ones mentioned above.

If I take £1500 a month I’ll be making a loss, so it sounds like I might want to get in touch with people!

Sounds like you need to get a dedicated machine and system then – most of my customers pay by BACS so card payments are just for small transactions.

SumUp user here. All good and hassle free, as the above poster though, most of my big payments come in via BACS.

Take your monthly revenue expectations and add a few rows below on your model for fixed card machine rental costs / estimated % debit charge costs / estimated % credit card costs. Work our cost per provider. Ask them for fully stacked quote breaking out every card type and any hidden expenses in addition to terminal rental. The hidden fees with many of the old players are crazy, especially on things like PCI, Amex and corporate cards.

If you don’t fancy any of the above next gen payment co’s and want old style try:

PaymentSense. They focus on indie retailers.

Again, see if you can wangle short term contract and low fees.

Other co’s to try inc:

First Data
Barclaycard
Global Payments
Worldpay
Adyen

Pretty much covers majority of industry. Be wary that traditional co’s business model is to lock you into a long terminal rental of upto 4yrs, hide random costs and split out fees per card type, ramping up Amex and corporate.

For your expected revenue I wouldn’t bother. Take one of the next gen co’s with no lock-in and if you hit your revenue targets after getting off the ground you can swap out with little risk within a few days. Pretty annoying being locked in a multi year contract if things don’t go to plan.

For your expected revenue I wouldn’t bother. Take one of the next gen co’s with no lock-in and if you hit your revenue targets after getting off the ground you can swap out with little risk within a few days. Pretty annoying being locked in a multi year contract if things don’t go to plan.

Pretty much what I’d arrived at after following this thread and a chat with my accountant/friend 🙂

Cheers.

Are the fees for PayPal rubbish for small businesses?