Choosing a Mobile Card Payment System

If your small business doesn't accept card payments, you could be missing out on a lot of business. But you're not alone. Figures from the Department for Business Innovation & Skills show there are 4.6 million micro businesses in the UK. According to a WorldPay survey, those limiting themselves to cash-only payments are knocking 20% off the revenues of Britain's four million mobile businesses and sole traders.

It’s not surprising when you consider consumers rarely carry cash these days. A YouGov survey conducted by CardSave found that 30% of the public say they have been inconvenienced by a retailer not taking cards, with 16% leaving without making their purchase, 22% forced to seek a cash point and 7% purchasing less than they intended.

However, these issues can now be easily solved with mobile payment technology. Hairdressers, beauticians, builders, window cleaners, market stall holders, taxi drivers, driving instructors and all kinds of small and mobile businesses can use mobile chip and pin devices to accept credit and debit card payments.

One such device is WorldPay Zinc. You can purchase the chip and pin keypad for around £80 and register for the WorldPay app, which connects the device with your mobile phone or tablet computer to process payment. There are two pricing options: you can pay a 2.75% fee per card payment (plus 75p per refund) with no monthly payment, or pay £5.99 a month to reduce the fee per transaction to 1.95%. Either way, there’s no long-term contract commitment.

Geraldine Wilson, managing director of WorldPay Zinc, said the feedback from small businesses using the system has been positive.

She commented: “These businesses are reporting increased revenues with significantly higher average transaction values for each sale; on top of this, we’re also hearing that these tradespeople are spending less time chasing customers for payment and trekking to the bank in cash takings.”

There are various alternatives on the market, including PayPal’s offering, for which you pay £99 for your card reader, then 2.75% for every payment you accept with chip and pin cards or PayPal. The iZettle chip and pin reader is £59, with a standard charge of 2.75% for payments but at the end of each month the total monthly fees are calculated and cashback is available based on the total card payment volume. Intuit charges the same percentage per transaction, with its chip and pin reader priced at £79 plus VAT.

Intuit initially ran a pilot scheme before rolling out their service for general use. They conducted a survey of 1,000 small business in the UK and found only 19% of micro businesses (companies with fewer than ten employees) accepted card payments, while 47% said they would take cards if there was a more affordable way of doing so using their smartphone or tablet.

The response from the participants of the pilot scheme was positive. Rob Welch, who runs tour company smallcarBIGCITY, found in one week he was able to satisfy six clients who required the flexibility to pay for his service on the spot. As Welch observed: “Catering to your clients’ needs can be the difference between success and failure.”

There are many chip and pin readers and services available so shop around for the deal that suits you best.