4 myths about PAYG card machines

But they can also be a costly mistake for businesses that are more established and have started to see an increase in the number of transactions being made through a card or digital wallet.

There’re lots of myths and rumours that go around among business owners about the benefits of different kinds of card machines.

Some have elements of truth, others simply aren’t true.

But how can you separate fact from fiction and actually choose the right card machine for your business?

Here’s a quick guide to the biggest myths of PAYG card machines.

1. PAYG card machines are more convenient

It can be the case that a PAYG card machine can be beneficial for the right kind of business. 

But this is usually limited to businesses that don’t take many card payments.

As far as the hardware is concerned, PAYG card machines tend to be a bit smaller by design, but there’s not much difference between these types of machines and those provided by other suppliers.

So in terms of convenience, there’s little to choose from between a standard card machine and PAYG device.

2. PAYG card machines are cheaper

There can be some truth to this in some situations, but it’s not as cheap as you might think to use a PAYG machine - and the costs can increase rapidly.

For the simplest machine, you could probably pick one up for £20.

But this is the most basic machine and likely doesn’t have the kind of features you’ll need to make the investment worthwhile.

For example, the cheapest base model PAYG card machines only have a contactless tap section at the top.

They offer no way to accept payments via Chip and PIN and also don’t allow you to easily process refunds on the spot.

For the type of card machine you’ll actually need, you’re talking closer to £200 - 10 times the cost of the price often advertised.

3. PAYG card machines have better rates

This is completely false.

In fact it’s one of the biggest myths that business owners get sucked into when using card machines for the time.

Most PAYG card machine providers charge transaction fees between 1.7% and 2.5% for every transaction.

If you want to take remote or online payments via a PAYG provider you could face a transaction fee of up to 2.95% per transaction plus an additional fee for Card not Present cover.

So if you process £3,000 a month in debit card payments on a PAYG device, you could end up spending £800 a year in transaction fees alone.

On the other hand, if you choose a provider like Handepay, your transaction fees could be as low as 0.7% per transaction.

4. PAYG card machines are more reliable

Not always true.

Most PAYG card machines are wireless devices that rely on a stable WiFi or mobile connection to work properly.

If you’re trying to take card payments in a remote area, or a place with lots of WiFi interference, you could struggle to take card payments.

Plus, PAYG card machines have limited customer support available and - because you own the device outright - you’re responsible for any maintenance or upgrades of the hardware and software.

That can quickly become a high cost to your business when new devices or upgraded software is released.