How much does a card payment machine cost?
From the initial capital investment to the ongoing costs, here’s what it will cost to start using a card payment machine
Investing in a card payment machine can make a lot of commercial sense for your business.
Not only can you serve more customers during the day, you can increase the average value of their transactions.
Customers paying by card are known to spend more on “impulse” purchases than those using cash.
Plus, giving customers the freedom to pay by card removes their reliance on having enough cash in their pocket.
There are benefits from an operational point of view too.
With a card payment machine, you’ll spend less time cashing up at the end of the day, allowing you to spend more time running your business.
As with any business change, there will be an investment you need to make to benefit from accepting card payments.
However, many businesses don’t realise just how affordable it can be.
What you’ll pay for a card payment machine depends on a few important factors.
The quickest and easiest way to discover how affordable card payment machines can be is to get in touch with us to find out more.
One of our card payment experts will be happy to guide you through the costs and answer any questions you may have.
However, if you’d like to find out more information first, keep reading!
Initial capital investment
Card payment machines can cost hundreds, even thousands, of pounds to own outright.
So it’s understandable that this might seem off-putting.
But, very few businesses that use card machines actually buy the device.
They rent them.
Most card payment providers offer businesses the ability to pay a monthly rental to start accepting card payments, without a large sum of money up-front.
This is the most common way that businesses choose to accept card payments, as it decreases your liability for the machine.
With replacement terminals and upgrades available, leasing a card payment machine is the simplest and most cost-effective way to go.
Working out your monthly terminal rental cost depends on two things:
- The type of machine you choose (countertop, portable or mobile)
- The number of machines you think you’ll need
You may expect it to cost a fortune, however businesses can rent a top of the range card machine from Handepay for less than £20 per month!
Transaction fees
Alongside the monthly card payment machine rental fees, you’ll need to pay transaction fees.
These fees total a small percentage of each transaction you take, which is split between your acquiring bank, your terminal provider and card scheme (eg. Mastercard).
Transaction fees can be as low as 0.01% of a transaction.
But it could cost a bit more depending on the card your customer uses.
For example, a business customer paying on a Mastercard commercial credit card will typically incur a larger transaction fee than a shopper paying using their personal HSBC debit card.
Working out the types of cards you’re most likely to accept can give you an accurate idea of what you’ll pay in transaction fees.
Are there any hidden fees?
There are a wide range of fees that some card payment machine providers add to monthly bills.
Not all are necessary, and a lot of them aren’t disclosed when you first sign up.
Although we’re always honest and upfront about the costs you’ll receive if you accept payments with Handepay, many providers aren’t.
When receiving quotes for a card payment machine, it’s important to find out what you’ll really be paying.
Make sure to ask about the possible fees below, and factor those into your calculations when weighing up providers.
- Minimum monthly service charge
- PCI DSS compliance and non-compliance
- PCI DSS management charges
- Statement and reporting fees
- Authorisation fees
- Joining fees
- Exit fees
- Swapout fees
- Installation fees
It’s vital that you compare apples to apples and fully understand what you’re signing up to.
This saves you from getting hit with unexpected charges after your first month.
Can I buy a card payment machine instead of renting it?
Renting a card machine is the most common way for independent businesses to access card payments.
Signing up with a merchant services provider allows you to access a card machine along with affordable transaction fees and rates.
Buying a card payment machine outright makes the process a little trickier.
As mentioned above, card terminals are expensive, and once you’ve purchased one you’re liable to pay for any upgrades or replacements.
Plus, you’re then responsible for negotiating your own transaction fees.
Many card payment providers can’t offer contracts to businesses who own their terminals outright.
Which means you’ll need to speak directly with your acquiring bank for rates.
These can be a lot higher than going through a merchant service provider, as independent businesses don’t have the negotiating power of huge national chains.
It may seem like a simple option, but in the end it can be a lot more costly.
If you’d like to speak to a provider who makes getting started with a card payment machine a breeze, find out more from Handepay today.
We offer affordable card terminals and great rates, with no hidden fees. We can get you set up and taking card payments in a matter of days!
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