Best Card Machine for UK Small Businesses

While selling candles at a recent crafts fair I was dumbfounded by the number of stall holders that were haemorrhaging sales due to not accepting card payments. Curious, I asked a fellow stall holder why this was? to my astonishment he simply replied that card readers are expensive! Unfortunately, this misconception is common place, resulting in many small businesses losing out on potential sales. There are some fantastic card machine providers currently competing in the UK market. Hence, this article will review the best card machines for UK small businesses.

Best Card Machine for Small Business UK

​Card reader machines are often used to accept cashless transactions such as debit and credit card payments, they are small, lightweight, and portable. These card machines are typically app-based, meaning they require the use of a mobile phone or tablet device that is either connected through WIFI or Bluetooth. These machines charge a very low transaction fee that varies depending on the machine you choose, and is always deducted prior to cash being transferred into your bank account. 

Factors to Consider When Choosing the Best Card Reader for UK Small Business

Although there are several providers, this article is only going to focus on the top 4 mobile card readers & machines in the UK market. To enable you to have a better understanding of the nuances between each device, I have listed the key factors to consider when looking to choose the best one for you;

• Purchase Cost: The first consideration should be the cost of acquiring the device as there is usually an initial one-off purchase cost involved. Some companies will offer a promotional discount code, albeit for a limited period only - keep your eyes peeled as you can get as much as 50% off! 
• Transaction Costs: This refers to the amount that the card reader company deducts from all payments before cash is deposited into your bank account. You should regularly compare the different rates to ensure that you are always paying a competitive fee.
• Verification Process: This refers to the amount of time and effort it takes for the company to verify your personal details before you can activate your account. When signing up, you will be required to provide details about your business and your bank account, online signup takes about 5 minutes but the company will have to verify the information you provided. The amount of time it takes for the company to verify your credentials differs from one to another - typically 24 hours to 5 days.
• Additional Hardware: Most portable card readers require a smartphone or tablet device to connect to the machine. You’ll also be required to download an app which operates and manages the reader.
• Connectivity: This is the ease at which you can connect the card reader machine to its companion device. Some models require a WIFI connection, while others operate through a Bluetooth connection.
• Accessibility of Funds: This refers to the amount of time it will take for the service provider to transfer the funds to your bank account. Most providers take between 1 to 5 days to deposit funds – excluding PayPal who provide same day payment processing via Faster Payment.
• Accepted Payment Methods: This is the type of payments accepted by card readers. Examples include; Visa Debit and Credit cards, Master card, AMEX, Contactless, Apple/Android Pay, etc... Some readers even allow you to record cash payments! For a small business, the best machine is one that accepts the widest variety of cards and payment options. 
• Security: A good card reader machine is durable, reliable and most importantly secure. It is vital that the device has a tamper proof design and any data processed via the app is protected through encryption.

Top 4 Mobile Card Readers & Machines

1. SumUp Air

Established in 2012, SumUp Air is the most economical of all the card machines as it offers the lowest card payment processing fees, making it the most popular card reader on the UK market.

• Purchase Cost: £29 + VAT
• Transaction Cost: 1.69% per transaction
• Accessibility to Funds: Deposited within 2 business days
• Verification Process: Setup requires connecting your bank account and following the easy step-by-step process 
• Additional Hardware: IOS or Android mobile phone or tablet required
• Connectivity: Bluetooth connection
• Accepted Payment Methods: Accepts all major cards, contactless, chip and pin, magnetic stripe cards, Apple/Google Pay, and cash payments
• Security: Payment Card Industry Data Security Standard (PCI-DSS). 256-bit encryption. Tamper proof hardware design
• Extra Features: App also facilitates sending customer receipts via SMS or Email, creating and selling gift cards, customer invoicing, and inventory management – Additional fees may apply

SIGN UP - SumUp

2. Square

Established in 2009, Square Inc is a financial services and mobile payment provider based in San Francisco operating in the US and UK. It is one of the most versatile card machines on the market. 

• Purchase Cost: £19 + VAT
• Transaction Cost: 1.75% per transaction
• Accessibility to Funds: Deposited next day
• Verification Process: Setup requires connecting your bank account and following the easy step-by-step process
• Additional Hardware: IOS or Android mobile phone or tablet required
• Connectivity: Bluetooth connection
• Accepted Payment Methods: Accepts all major cards, contactless, chip and pin, Apple/Google Pay, and magnetic stripe cards
• Security: Payment Card Industry Data Security Standard (PCI-DSS). 128-bit encryption. Tracks fraudulent cards. Tamper proof hardware design
• Extra Features: App also facilitates customer invoicing and estimates, you can also take card payments over the phone via the app’s Virtual Terminal – Additional fees may apply

SIGN UP - Square

3. iZettle Go

Established in April 2010, iZettle AB is a leading financial technology company situated in Sweden and is one of the leading card reader providers in the UK. 

• Purchase Cost: £59 + VAT
• Transaction Cost: 1.75% per transaction
• Accessibility to Funds: Deposited within 1-2 business days
• Verification Process: Setup requires connecting your bank account and following the verification process. Or you can save time by connecting a pre-existing PayPal Business Account – but you will pay higher transaction fees via PayPal
• Additional Hardware: IOS or Android mobile phone or tablet required
• Connectivity: Bluetooth connection
• Accepted Payment Methods: Accepts all major cards, contactless, chip and pin, Apple/Android/Samsung Pay, and cash payments
• Security: Payment Card Industry Data Security Standard (PCI-DSS). Data is encrypted by HSMs cryptographic servers. Tamper proof hardware design
• Extra Features: App also facilitates customer invoicing, inventory management and accounting software integration – Additional fees may apply

SIGN UP - iZettle

4. PayPal Here

Established in 1998, PayPal is one of the most popular and best-known online payment service providers in the market. The company boasts of more than 300 million active registered accounts, and operates in more than 200 markets across the globe. 

• Purchase Cost: £45 + VAT
• Transaction Cost: 2.75% per transaction
• Accessibility to Funds: Instant Access
• Verification Process: You are required to sign up for a PayPal Business Account
• Additional Hardware: IOS or Android mobile phone or tablet required
• Connectivity: Bluetooth connection
• Accepted Payment Methods: Accepts all major cards, contactless, chip and pin, magnetic stripe cards, Apple/Google Pay, and cash payments
• Security: End-to-end encryption and Chip and PIN technology. EMV Certification (Levels 1 & 2)
• Extra Features: App also facilitates sending customer receipts via SMS or Email, customer invoicing, and inventory management – Additional fees may apply

SIGN UP - PayPal

Conclusion

​With modest device purchase costs, reasonably low transaction fees, zero fixed monthly charges and no contractual lock-in period, it’s an absolute no brainer! Yes, cash is king, but wouldn’t you rather have 90% of something, than 100% of nothing?!! Which is what you’re getting every time you turn away a non-cash paying customer. In my opinion, the benefits of card readers far exceed any perceived negatives, and as you’ve seen they’re certainly not expensive.