iZettle Card Reader

With no fees to pay each month and no contract to sign, the iZettle card reader has become a popular choice for merchants in recent years. With the cost of starting a business coming down over the last decade, one thing entrepreneurs still look for is a good return on investment on the services they use.

There’s no doubt that being able to take payments on the move with no big overheads is one of the key factors that has made this payment system work for a growing band of entrepreneurs. But how does it stack up against other similar mPOS devices on the market?

What is iZettle?

The iZettle is a mPOS reader which accepts a wide range of payments. Simply designed and easy to use, it works through Bluetooth and Wi-Fi connections and is linked up with any portable device such as a smartphone or tablet for payment processing.

iZettle Reader accepts the usual major credit and debit cards such as Visa and American Express as well as more recent additions such as Applepay. The process is simple and quick. You enter the details on your smart device, hand the iZettle Reader to the customer and they use it like a standard POS terminal.

Who Does it Work for?

It can work for any type of business including shops and offices who need a simple but effective way to take payments. The portability and connectivity mean that it’s an ideal POS method for businesses that tend to work out on the road, including mechanics, electricians, plumbers and sales staff who need a quick and reliable payment method.

The set-up costs are next to nothing and involve purchasing the iZettle Reader. You don’t have to worry about monthly fees as with standard terminals. The costs come in the transaction fees and you should expect each transaction to have a 2.75% charge on it. The charge comes down the more you use the reader to 1% if you are processing over £40,000 a month. The balance for many users will with be between ease of use and the charges that they’re willing to pay.

This is a pay-as-you-go service so there is a limit on the amount of transactions. For private accounts, this is currently £1,000 in any 24-hour period. For business accounts, it depends on the payment type – it’s £500,000 with a limit of £5,000 per transaction with a chip card and PIN/touch ID and £250,000 with £2,500 per transaction for everything else. For most businesses, this won’t be an issue.

Pros of the iZettle Reader

  • Set up is cheap. The one-off cost of an iZettle Reader is just under £60, though discounts are often found with prices dropping to as low as £25. There’s no monthly charge or setup fee.
  • You get a customer help service thrown in for free which includes a telephone hotline.
  • There are a range of other benefits with the iZettle app, including being able to manage customer data and send out mail marketing campaigns from the collected information, as well as receiving daily sales summaries.
  • You can create both private and business accounts depending on your needs and it works with both iOS and Android.
  • There are plenty of accessories such as till kits which can be used if you are running a bricks and mortar store.

The Cons of the iZettle Reader

  • Transaction costs for mobile card readers such as iZettle tend to be higher than for standard card terminals.
  • You need to have a phone or tablet to use the reader though it does make this POS system highly portable.
  • You can’t use iZettle Reader for over the phone transactions or ecommerce and it doesn’t work when there’s no internet connection.

For starter businesses and bigger companies, the iZettle Reader offers a flexible way to take payments and is becoming increasingly popular. The cheap start-up costs are an attraction though some businesses may find the 2.75% processing charge for each transaction a problem. Overall, though, if you want to keep control of the costs this is a good choice to make.