Is it time to go cashless?
As a small business owner, one way to engage more customers is by having a range of cashless ways to pay.
The slight drawback is card payment fees you then accumulate.
We’ve explained below everything you need to know about making your business cashless, including what sort of charges to expect.
What do I get charged per transaction?
With each card payment, you can expect to pay 1.5 – 3.5% of the sale. This depends on what type of card your customer uses, or whether they use a card at all (mobile payments).
Credit cards tend to cost more than debit cards – and cardless payments cost even more.
On top of this, transaction fees will be around 1-3% of each sale.
There are also authorisation fees, which take between 1 – 3p per sale.
Amex transaction fees can be up to a whopping 4% – which makes it understandable why a lot of small business owners refuse them.
Finally, merchant service charges can be around 0.25% to 0.35%.
These are just the fees associated with each sale – there’s still a few more prices you face!
Extra charges to know about
Card machines cost around £30 – £80 upfront and the set up should be just under £100.
On a monthly basis, you will pay up to around £30 a month for service fees and merchant account fees (however, these monthly fees depend on your provider and also the total money made from transactions).
Last but most certainly not least is the PCI compliance fee, which will never be more than £5 a month – but you must never go without unless your supplier pre-pays.
Can I save or cut back?
The provider you’re with has a huge impact on price, so you’ll need to compare and find the best for your business. Examples of providers to choose from include WorldPay, Zettle, Square, PayPal and Barclaycard Anywhere.
Comparison really is crucial, given how wildly prices can vary. You’ll find that a lot of providers offer special discounts for small businesses.
It’s also important you investigate hidden fees, like chargebacks and refunds (which can cost up to a £1 a go!).
Is it worth the fees?
Having a cashless payment option is absolutely essential.
Mobile and contactless payments are only on the rise, so you want to appeal to every audience.
A staggering 57% of all payments made last year across the UK were on cards, and 32% were contactless.
Making your business a cashless site also has a lot of safety and efficiency benefits.
Ready to save more money?
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