So, are there any card readers available that don’t cost money for small businesses? The quick answer is no; however, there are other alternatives that are available at a cheaper cost.
When calculating the total price, it is important to take into account not just your monthly fees but also any transaction fees, set-up fees, and any other expenses that may be buried in the fine print.
We are going to take a look at some of the most affordable card readers for your small business, as well as determine if renting or purchasing would be the better option for you.
Should I buy or rent a card reader?
Rental
Rental credit card readers are best suited for short-term or temporary enterprises, such as pop-up or seasonal operations, as some of the following contracts imply.
Pros
- Providers are adept at meeting requirements even with little notice, which allows them to fill demand even during busy seasons like Christmas.
- Because rental unitsmay be used by several people, it is reasonable to assume that they will be more resilient to knocks and other types of damage.
- In the event that something goes wrong, your service provider can fix it fast.
Cons
- There might be additional costs, such as set-up fees.
- You are obligated to ensure that the card readers are in a serviceable condition at all times.
Purchase
Pros
- Investing in card readers allows you to keep spares on hand, which is helpful for handling unexpectedly high volumes of customers.
- Investing in the terminal is a good idea if you believe you will use it more than once.
- There is no need to be concerned about additional costs in addition to transaction fees
- Switching between different merchant service providers is made simpler.
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
The 7 cheapest contactless card reader deals out there
The amount that you pay will be determined by factors such as your turnover, the type of card reader that you have, and the types of transactions that you process. Let’s have a look at the bargains that are the most affordable, shall we?
Rental
Tyl by Natwest Clover Flex package (WiFi only)
Reader price: £14.99 + VAT per month rental
Transaction fee: 1.5 per cent (more for American Express transactions)
Features: Eight hours of battery life on one charge, use Tyl Portal at no extra cost, five-inch glass touchscreen, fingerprint recognition
Barclaycard Flex
Ideal for sole traders and seasonal sellers whose turnover is less than £100,000.
Monthly fee: £10 a month + VAT for an 18-month contract
Transaction fee: 1.6 per cent per transaction
Features: Connect your reader via Bluetooth for ease of use, add multiple employees and grant them specific features, real-time tracking of totals
Dojo Go
Reader price: £20 a month
Transaction fee: 1.4 per cent if your turnover is below £150,000 and bespoke if it’s over £150,000
Features: Receive your takings the next day, may pay up to £3,000 in exit fees to your previous provider, built-in thermal printer, point-to-point encryption, ten-hour battery life
Purchase
SumUp Air
Reader price: £39
Monthly fee: None
Transaction fee: 1.69 per cent per transaction
Features: Connects via Bluetooth to your smartphone or tablet, up to 12 hours of battery life, unlimited free bank transfers on incoming and outgoing statements, process 500 sales on a single charge
Zettle
Reader price: £29 + VAT
Monthly fee: None
Transaction fee: 1.75 per cent per transaction
Features: Send online invoices, no daily cash payment limit, sell and accept gift cards
Square
Reader price: £16 + VAT
Monthly fee: None
Transaction fee: 1.75 per cent per transaction
Features: Intuitive checkout, connect to Apple or Android device via Bluetooth
Lopay
Reader price: Free card reader (but only if you transact £2,500 in the first six months – then either return the card reader or pay £49)
Transaction fee: 0.79 per cent for weekly payment, 0.99 per cent next day or 1.79 per cent for instant payment. American Express are 1.79 per cent or 2.79 per cent for an instant payout
Features: Choice of payments done instantly, weekly or monthly; see daily, weekly or monthly details at a glance; and export reports to your preferred accounting software
Which card reader should I buy?
It is up to you to choose an inexpensive card reader, but keep in mind that there are other considerations to take into account in addition to the cost. Consider the functionality demands that you have, such as accepting payments at the table if you own a restaurant or increasing the number of Amex pa
