Payment terminals

With cash use declining, here’s what you need to know when choosing a payment terminal.

WORDS PETER CRUSH

36 TAP INTO

While Covid-19 decimated business activity temporarily, its eff ect on cash has been more permanent. In 2020 the number of UK transactions in notes and coins plummeted by 35%, and fi ve in six UK payments (£166bn) are now made without cash. Payment is almost exclusively the preserve of tap-and-go terminals – boosted by a maximum limit of £100. Th is alone saw card payments jump by another 30%, according to UK Finance.

But while the technology is easy for consumers, barbershop and salon owners have a variety of providers to consider and questions to answer before selecting the right one for their business.

No contract vs rental

Th e trade-off for not having a contract is a higher transaction fee. Zettle and SumUp off er card readers for £19 and £29 respectively, or terminals for £149, with no monthly fees or contracts – but they charge 1.75% and 1.69% per transaction. Dojo charges £20 a month and fees of 0.3%to 2%. But it also off ers turnover-dependent contracts – a monthly rolling contract for businesses earning more than £150,000 per year, and a six-month initial contract for fi rms earning less.

WHAT ABOUT TIPS?

Tyl (from NatWest) allows vendors to set suggested tip percentage amounts in its app, which clients can then accept.

SumUp has a ‘smart tipping’ function, in which clients can choose from dynamic tipping options based on the transaction amount.

Zettle can be set up to ask the client if they would like to add a tip. If yes, they must add the amount manually.

Speed and fees

According to Mobile Transaction, which recently tested the main players, payments via Zettle are typically credited in one to two working days, while SumUp takes up to three days. Dojo, meanwhile, off ers nextday payments for free.

Minimum transaction values of £1 are required by Zettle, but not by other providers such as Square. However, this is probably less important than the small print relating to minimum monthly transaction fees. Dojo’s minimum fee is bespoke for each business, and it charges users this amount even if they haven’t made suffi cient sales. Th is is not the case with MyPOS, Square and SumUp.

DON’T FORGET...

Fees add up: If a client pays £25 and your transaction fee is 1.75%, you’ll be charged around 43p by your provider.

Do you want portability? Countertop card machines are probably best for salons, which have a single point of sale. Portable machines require recharging and need a good 3G or 4G signal.

Customer support: Check how reliable and friendly a provider’s customer support is. SumUp, Square and Zettle score high praise for their support on most comparison sites.

BEST FOR...

Lowest transaction fee: Barclaycard Anywhere – 1.6%.

Cheapest device: Square Reader’s device is £16, with no monthly contract.

Do your research

Tina Beaumont-Goddard, NHBF director of membership services, advises Members to choose a payment machine that best suits their business needs and to ensure they do their own research on which providers fulfi l those needs. ‘Paying by card remains hugely popular and contactless payments are also widespread,’ she says. ‘It’s also important that Members know the law when it comes to taking payments and not charging clients for paying with a card.’

Add-ons: Zettle can provide terminals, stand docks, receipt printers and even barcode scanners.

Visit nhbf.co.uk/

card-payment-solutions

FIVE IN SIX UK PAYMENTS – WORTH £166BN – ARE NOW MADE WITHOUT CASH

CASE STUDY ‘I HAD TO ESCAPE CONTRACT HELL’

Paul Curry, owner of York-based hair salon Studio 12, faced hidden charges and restrictive covenants with his fi xed-terminal system and knew it was time to change provider.

‘If you didn’t cancel your contract within a small window of time, you’d be stuck for another minimum of three years, and it would charge monthly fees if you didn’t update compliance documents – which kept changing each time, so you couldn’t just submit the same information,’ he says.

‘I am now with SumUp. It’s pay as you go, there are no hidden fees and it’s more straightforward. I don’t mind paying the higher transaction fee because it doesn’t cost a great deal more in the long run. I’d rather have this to get out of a long-term and timeconsuming contract.’

Paul uses a basic reader, which means he can’t print receipts, although he can text or email them. However, only one client has asked for a physical receipt in over six months. He also says clients prefer a tap-and-go payment option.

‘Before Covid-19, 40% of clients paid by card and 60% used cash,’ he says. ‘Now it’s 95% via card. With the limit rising to £100, most of our services can be paid in full by people tapping their card.’