New business, taking payment via cards

jstvj

Hello
We are starting a new business and want to accept payments by credit/debit card.

What is the best way of doing this please ?

Have read about the iPhone apps and card readers which cost 2.75% per transaction. Is this fee reasonable and is the process safe for customers and ourselves ?

Has anyone any experience of using these services, who can recommend the best system to use. I like and trust Paypal for buying on EBay but I know they can be expensive for Sellers ?

Any independent advice would be appreciated.

reclusive46

iZettle is a good option for small businesses. You can accept all cards easilly (American Express (You normally need a seperate agreement with them), Visa, MasterCard, JCB).

The rate also goes down the more revenue you take in.

Are you wanting to take payments online or in-store though?

If your wanting to take payments you probably want to look at Stripe payments.

jstvj

reclusive46 wrote: »

iZettle is a good option for small businesses. You can accept all cards easilly (American Express (You normally need a seperate agreement with them), Visa, MasterCard, JCB).

The rate also goes down the more revenue you take in.

Are you wanting to take payments online or in-store though?

If your wanting to take payments you probably want to look at Stripe payments.

Never heard of iZettle but will look them up, thank you.

We want to take payments in-store

jstvj

jstvj wrote: »

Never heard of iZettle but will look them up, thank you.

We want to take payments in-store

Couldn't find an iPhone app for izettle and Paypal don't seem to offer a swipe machine option.

reclusive46

jstvj wrote: »

Couldn't find an iPhone app for izettle and Paypal don't seem to offer a swipe machine option.

There is definitely an iPhone app for iZettle. I have it.

Go to iZettle.com/gb

The Chip and PIN reader is £82.50+VAT (Tax deductable though), then you pay 2.75% to 1.5% per transaction depending on how much you take per month.

PayPal are trialing one but its not available to most of the public yet.
It also has many cons compared to iZettle. It doesn't have a swipe reader (So any non chip cards won't work), it doesn't take American Express, JCB or Diners Club and its more expensive per transaction + You still have to pay £99 for reader.

Out of interest, what type of business are you running?

jstvj

reclusive46 wrote: »

There is definitely an iPhone app for iZettle. I have it.

Go to iZettle.com/gb

The Chip and PIN reader is £82.50+VAT (Tax deductable though), then you pay 2.75% to 1.5% per transaction depending on how much you take per month.

PayPal are trialing one but its not available to most of the public yet.
It also has many cons compared to iZettle. It doesn't have a swipe reader (So any non chip cards won't work), it doesn't take American Express, JCB or Diners Club and its more expensive per transaction + You still have to pay £99 for reader.

Out of interest, what type of business are you running?

Not quite sure why the app didn't show when I searched Apple but got it now, thank you.

The reviews are very good, although Visa seems a problem unless you use the chip and pin machine. One review critised the payment delays ?

My wife has trained as a pet groomer and is now ready to it alone.

Thanks for your advice

reclusive46

jstvj wrote: »

Not quite sure why the app didn't show when I searched Apple but got it now, thank you.

The reviews are very good, although Visa seems a problem unless you use the chip and pin machine. One review critised the payment delays ?

My wife has trained as a pet groomer and is now ready to it alone.

Thanks for your advice

As a business get the chip and pin machine, Visa processes just like any other card then. Its a lot cheaper then getting a chip and pin machine anywhere else.

I process a significant amount monthly and have never had any payment delay, I normally actually get paid earlier than they tell you.

jstvj

Have just been reading Paypal's website. Their card reader is indeed £99 which includes VAT and delivery, so it's the same price as izettle.
The card reader does have a swipe or number key in facility,but if you use these options, for some reason Paypal charge 3.04% + 20pence per transaction. Their normal charge for chip and pin is 2.75% per transaction which seems to be the norm.

Most people have chip and pin nowadays and having dealt with Paypal for so many years, I trust them more than these newcomers.

Therefore, unless anyone has discovered any particular disadvantage, I think I am leaning towards Paypal ?

reclusive46

jstvj wrote: »

Have just been reading Paypal's website. Their card reader is indeed £99 which includes VAT and delivery, so it's the same price as izettle.
The card reader does have a swipe or number key in facility,but if you use these options, for some reason Paypal charge 3.04% + 20pence per transaction. Their normal charge for chip and pin is 2.75% per transaction which seems to be the norm.

Most people have chip and pin nowadays and having dealt with Paypal for so many years, I trust them more than these newcomers.

Therefore, unless anyone has discovered any particular disadvantage, I think I am leaning towards Paypal ?

iZettle was the first and is the leader in mobile payments. Also bare in mind you pay less in transaction fees on iZettle as the 2.75% fee is reduced as you take in more payments. You also can't take American Express, Visa Electron (The two main acceptance problems), Diners Club or JCB with PayPal here. If your a business the chip and pin reader is tax deductable on iZettle, I don't believe it is on PayPal here. Plus PayPal is infamous for reviews on sellers, holding funds for up to 180 days.

It might also seem like a silly thing but the PayPal here device doesn't even have a screen.


PIN entry lights:

First LED blinking: a card has been inserted and the card reader is waiting for PIN entry.
Multiple LEDs are constantly lit: the card reader is in PIN entry mode during a transaction, or the card reader is displaying the battery status if the cancel button (yellow arrow) was pressed for a few seconds.
Multiple LEDs are temporarily lit: the card reader is starting up after you’ve turned it on.
PIN status light:

Solid green: the customer has entered the correct PIN.
Blinking green: the card reader is starting up.
Solid red: either the customer has entered an incorrect PIN, or the card reader has a very low battery.

The PIN entry could get confusing for a customer.

iZettle is very similar to any other PIN machine and it won't be confusing to anyone.

+ If you get refered for iZettle by someone you can get £15 (I believe its £15) worth of transactions. Thats just under £600 worth of transactions free.

jstvj

Hello Reclusive46

Yes I agree that the izettle screen is easier and far more reassuring for Customers to use. I like the ability for the Customer to sign acceptance on the screen. However the demonstration video I have just viewed has one very important disadvantage. This concerns payments via a Visa card, which requires a text being sent to the Customer's mobile and then they confirm the payment via the izettle website.

For a dog grooming business this would be impossible because a large proportion of Customers are elderly, who either don't possess a mobile phone or wouldn't want the hassle.

I don't know if Visa payments are also a problem with the Paypal system but I will have to try to find out ?

reclusive46

jstvj wrote: »

Hello Reclusive46

Yes I agree that the izettle screen is easier and far more reassuring for Customers to use. I like the ability for the Customer to sign acceptance on the screen. However the demonstration video I have just viewed has one very important disadvantage. This concerns payments via a Visa card, which requires a text being sent to the Customer's mobile and then they confirm the payment via the izettle website.

For a dog grooming business this would be impossible because a large proportion of Customers are elderly, who either don't possess a mobile phone or wouldn't want the hassle.

I don't know if Visa payments are also a problem with the Paypal system but I will have to try to find out ?

I think you've misunderstood the system. With the Chip and PIN reader, there is no different system for Visa. Its done with a Signature or PIN (Depending if the card has been swiped or inserted). The text message process is only on the non chip and pin reader that used to be sold.

If you go to http://help.izettle.com/customer/portal/articles/1084729-taking-card-payments#chip-pin

You will notice under the chip and pin reader section that a Visa card is being used. If you scroll up you will see the Visa SMS process is just for the old Chip and Signature reader.

I've taken loads of Visa payments with my Chip and PIN reader like I would take a MasterCard or American Express. It works the same way you'd normally pay in a shop with a Visa card.