Weighing Up The Right Card Reader for Your Business? Check This Guide

One question that often boggles the minds of small business owners is whether to rent or buy a card reader. It’s a valid concern when cost-cutting becomes imperative. While free card readers for small businesses are non-existent, certain affordable options do exist.

Renting vs Buying Card Readers

Renting a Card Reader

For business bodies with transient operations like pop-up or seasonal businesses, rental card readers become more viable.

Benefits

• Cater to high demand during peak times like Christmas
• Quick response time to requirements
• Resilient design to withstand frequent user exchange

Drawbacks

• Potential hidden set-up charges
• Regular maintenance is required

Buying a Card Reader

If you plan a long-term use of the terminal, buying is the more cost-effective approach.

Benefits

• Ready availability during unexpected busy periods
• No extraneous fees beyond transaction charges
• Ease of switching merchant service providers

Drawbacks

• Obsolescence risk over time, necessitating a new purchase
• The cost of purchase and repairs falls on your shoulders

The Top Cash Conscious Contactless Card Reader Deals

1. Rental Options
2. Tyl by Natwest Clover Flex package: Pay £14.99 + VAT per month for Wi-Fi only or £16.99 + VAT for 4G+Wi-Fi. No hire fees for the initial three months for newcomers. Features include a five-inch glass touchscreen, eight-hour battery life on one charge, and fingerprint recognition.
3. Barclaycard Flex: Pay £15 a month + VAT on an 18-month contract. Suitable for small businesses and startups. The reader connects via Bluetooth, facilitating up to 700 sales on a full battery charge.
4. Dojo Go: Pay a monthly reader price of £20. If your turnover is below £150,000, maintain a transaction fee of 1.4 per cent +5p. Features include next-day receipt of earnings and instant fraud detection.
5. Purchase Options
6. SumUp Air: Reader available for £39 with no monthly fees. Features include smartphone connectivity and free bank transfers on incoming and outgoing statements.
7. Zettle by PayPal: Pay £29 + VAT for the reader with no monthly charges. Notable features include integrations with Vend and Lightspeed.
8. Square: Reader cost is £19 + VAT. Features include a two-year warranty and Bluetooth connectivity to Apple or Android devices.
9. Lopay: Provides a free reader if you transact £2,500 in the first six months. Otherwise, return the card reader or pay £59.

Before Purchasing a Payment Card Reader

Before you purchase a card reader, take into account factors beyond the price. Think about your particular needs such as tableside payments (if you run a restaurant) or increased Amex payment fees if a large portion of your transactions come from American Express users. (Taking a moment to respect the branding of Amex - they simultaneously charge the highest payment fees for retailers, while convincing Amex users that they support small businesses - how does that add up!?)

Legal considerations with payments

Be aware of the potential legal risks associated with card transactions and take necessary precautions to safeguard your business signup to Genie AI for drafting, reviewing, negotiating, and signing legal agreements using our AI Legal Assistant.

We can also assist with various e-commerce docs like privacy policies, cookie policies, GDPR notices, as well as in-store notices such as those around sunday trading hours.

Overall

There’s no one-size-fits-all when it comes to choosing a card reader for your small businesses. You’ll have to make a bit of a leap of faith and you can always migrate to a more suitable provider if the first one you choose doesn’t work out.

That being said, your choice should ultimately align with the nature, immediate requirements, and long-term vision for your business.

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