Guide to PDQ machines: How can you pick the best one?

 

PDQ machines or Card machines are commonly used in a variety of locations throughout the UK and for a very good reason. Being able to pay digitally is not something unusual anymore, instead it has become the norm. That’s why you want to learn more about PDQ machines, what types are there, and how you can differentiate cheap PDQ machines from the top tier ones.

How does a PDQ machine work?

 

Before you buy any PDQ machines, it’s important to understand what they do and how they work. These have a very seamless process, and it involves a few crucial steps:

·        First, the cardholder will present their card and insert it into the machine or swipe over it, depending on the card or machine.

·        Card info is acquired by the PDQ machine, and then it’s sent to the acquiring bank. That bank will connect to the card issuer’s bank. They do that to ensure funds are available in the card holder’s account.

·        The card issuer’s bank will either approve/decline the transaction based on funds and their own criteria.

·        Once the transaction is approved, funds will be sent from the customer to the merchant. Despite having multiple steps, this process is very fast, and it usually takes just a couple of seconds.

 

The most common types of PDQ machines or Card machines

 

Every business will need a specific type of PDQ machine, depending on their use case. However, for the most part, you will encounter 3 main types of PDQ machine. Each one can be suitable for any business, but as always, it depends on what the company wants to use it for.

 

Mobile PDQ or Mobile Card Machine

 

Businesses that need to make payments on the go can’t rely on a countertop PDQ. So, they need a mobile PDQ solution. These communicate via GPRS, and they use a SIM card. Who needs mobile PDQ machines? Generally, builders, taxi drivers or any business that offers mobile services will need this type of PDQ.

 

Portable PDQ or Portable Card Machine

 

A portable PDQ is not something you take outside of a company’s premises. However, unlike a countertop unit, you can still carry it from table to table or even to another room. That’s because a portable PDQ uses Bluetooth. The wireless feature of portable card machines makes them much more convenient, which is why lots of businesses opt for this approach when they buy a PDQ machine.

Shifting from dial-up to Bluetooth is very useful, and it can be great for any type of business. Portability always helps, and it also leads to more convenience for customers too. It’s common in the hospitality world, but retailers also use this type of PDQ as well.

 

Countertop PDQ machines or Countertop Card Machines.

 

These are not portable, and usually they are also included in a large POS system. In addition, these countertop machines are connected to the internet by cable. Normally, any shop that doesn’t need a portable PDQ can opt for these machines. They are dependable, reliable, and the constant internet connection makes it easier to avoid any possible glitches.

 

What is a fixed-fee card reader?

 

If you have a smaller business with a turnover of under 15,000 GBP, it makes sense to opt for pay-as-you-go credit card readers. However, if your credit card turnover is over 2000 GBP a month, it’s better to work with a merchant services provider. Usually, the transaction fees and setup costs will vary based on the merchant service provider and your business. You can ask for a quote and then narrow down the right option to fit your needs.

 

Square Reader is a good fixed free card reader since it has great features and no monthly fees. It’s one of the better options and also the first reader without a keypad for UK businesses. SumUP Air on the other hand doesn’t have refund fees, nor will it charge if you have foreign payments. It also sends SMS or email receipts and you have complete support for all kinds of cards.

 

Zettle Reader 2 is mobile and very easy to use. The benefit you get from this service is that it doesn’t have setup fees, nor does it come with monthly fees. And just like SumUP Air, it doesn’t have any refund fees either.

 

All of them are a great solution if your annual card turnover is under 15000 GBP. If it’s more than that, then you will have to shift towards a merchant services provider. It’s definitely worth giving it a try, however, since it helps deliver more convenience to your business and customers as well.

 

Types of payments supported by PDQ machines

 

Magnetic stripe

 

It’s the most outdated system, but it is still in use in many places within the country. You need to swipe the card through the machine, and then you have to sign the receipt. That’s a more prolonged process, and it also needs to be validated by the merchant.

 

NFC

 

NFC or near-field communication can also be a very good option for PDQ machines. The idea here is that you hold the phone near the terminal, and thus, the phone will be able to send data to the device. Amazon Pay, Apple Pay, and Android Pay are great examples of NFC payment solutions for mobile phones.

 

Contactless

 

A contactless card has an embedded chip and an antenna. That helps transmit your card data via radio frequency. The terminal receives that data, and it will automatically charge your card. If the order amount gets past a certain threshold, then the card holder will need to insert their PIN. However, contactless payments for cheaper products usually don’t need any PIN, which increases the overall convenience!

 

Chip and PIN

 

Europay, along with VISA and MasterCard, introduced the chip and PIN system in 2004, and it became mandatory 2 years later. The card authorisation data is kept on a chip found within the card. When you pay for a product, you will enter the PIN into the terminal, and it needs to match the code found on your card’s chip. If it does, the transaction is completed. Otherwise, you will need to insert the PIN again. Depending on the bank, you only have a few tries until the card is temporarily/completely blocked for security reasons.

 

Compare PDQ machine costs to find the perfect option.

 

Generally, when you use PDQ machines, you also have to look at their costs. Sure, you can buy cheap PDQ machines, but hardware costs are not the only ones to consider. There are variable payment fees related to the payment processor.

 

Variable payments:

 

·        Chargeback fees appear when a cardholder will ask for a chargeback, sometimes they can be up to 20 GBP for a single chargeback.

·        Merchants will charge anywhere from 2.25% to 0.35% for debit card transactions, and that goes up to 0.9% in some cases for credit card transactions.

·        Aside from those, you also have authorization fees. These charges are from 1 to 3p, and they are made for every authorisation transaction.

·       

Fixed fees:

·    Every unit has a minimum monthly service charge, which appears if transactions are under a certain price.

·        Setup fees are related to the installation of the PDQ machine. Depending on the product, they can be anywhere from 50 to 100 GBP or more. There are PDQ hardware providers that offer a more expensive PDQ price; however, installation is free.

·      Terminal hire is also a cost to keep in mind, and it’s a charge for PDQ machine rental. It can be 16 to 30 GBP or more depending on the machine type.

·     Lastly, we also have to consider the outright PDQ costs when you buy the machine. Sometimes, you don’t want to rent a machine, and while buying costs more, it’s the better option for most businesses.

Should you rent or buy a PDQ machine?

That’s a great question because buying a PDQ machine or renting one are the main options to consider. Of course, your budget is what matters here because buying always seems the best option if you can afford it. However, there are payment providers that will offer a PDQ machine you can use for free for a year, or they will lower the fees. So, there are certainly deals to be had. It always comes down to finding the right option and seeing what works for you.

Pros and cons of renting a PDQ machine

Renting a PDQ machine will cost up to 25 GBP a month, and sometimes, you can find great deals. However, renting also has a few downsides.

Pros:

·        You don’t have to buy the machine outright. You save money now

·        The company will replace your PDQ machine if it ends up damaged or not working

Cons:

·        You sign a contract, and you’re locked to that vendor for a certain number of years

·        Renting will end up costing you more in the long run when compared to buying outright

Pros and cons of buying a PDQ machine

The best approach when you need a PDQ machine is to just buy it outright. Keep in mind that some machines can be 200-800 GBP. It depends on how much you want to spend and what funds you have available. Here are the pros and cons!

Pros:

·        Once you buy the PDQ machine, you own it

·        These machines come with a warranty, which helps

·        You don’t have to deal with monthly fees

Cons:

·        If the machine breaks outside of the warranty period, repairs can be expensive or you have to buy a new one.

·        Upgrades are not offered free of charge; you have to pay for any upgrade.

Picking between either renting or buying a PDQ machine is never an easy thing. There are always challenges to consider here, but for the most part, buying a PDQ machine is usually the better option. However, that’s not the case if you have limited funds and want complete support from the provider. That’s where renting shines, even if you will have a lengthier contract with the provider. Make sure that you study the contract and see if it fits your needs or requirements.

Source: https://cardmachine.co.uk/guide-to-pdq-machines-how-can-you-pick-the-best-one/ 

A Complete Guide To Find The Cheapest Merchant Service Provider

If you search card merchant service provider on Google you will find tons of articles with a wide range of claims on what’s best for customers “ who need immediate access to funds” or “ best for brand reputation”. Let us make the decision easier for you, for 60% of SMEs in the UK, all you need to worry about is 2 things: the price you will pay for the card machine and transaction cost, and if you’re willing to be tied into a contract.

For the other 40%, you may need a card payment solution that’s a little more bespoke, if you need payment options for the occasion sale or need something that will integrate into your e-commerce website you might need a payment provider more suited to your needs. In this article, we review multiple providers so you can better understand which merchant service is best suited for you.

Merchant account service providers are a bit like choosing an electricity provider, the quality of electricity provided is hardly going to change if you switch providers, the main reason people switch is due to cost.

The rest of this article will take an in-depth look at all the factors involved in selecting a merchant service account, but if you want to skip all the reading below and simply want to find the cheapest one, just see which of the statements below fits you best and follow the link(s) below.

What of the following applies statements best reflects what you’re looking for?

1) I want the cheapest merchant service provider and I don’t mind being in a contract for a short time.

– Who does this statement typically apply to?

– Any business turning over 3k a month or more.

– Use our comprehensive search engine and get prices costs on screen here

2) I don’t want to be tied down to a contract.

– Who does this statement typically apply too?

 – Startup businesses, retailer with low or irregular income and those that just don’t want to be tied down!

 Compare all PAYG merchant account providers here

 

What is a merchant service provider?

A merchant service provider is a bank specialising in card processing that provides businesses with the capability to facilitate electronic payment transactions.

They enable businesses to accept various forms of payment such as credit cards, debit cards, and mobile payments, from their customers.

Merchant service providers act as intermediaries between the business, the customer, and the payment networks, ensuring secure and efficient payment processing.

Some merchant services buy rates from the bank directly but do not actually provide the card processing service. Although these companies are intermediaries they often have cheaper rates than the bank directly, a little bit like the car insurance sector.

What other factors matter when choosing the best merchant service provider?

There are several other things to consider other than price when choosing a merchant account, although this isn’t an exhaustive list here are the elements, we think matter most after cost:

Would you prefer a compact card reader that effortlessly fits into your handbag and requires no charging throughout the day?

Are you seamless integrations and robust reporting? Whether you want your accounting software to seamlessly plug into your merchant account or desire a wealth of data, we’ve got you covered.

Considering an online merchant account? While most merchant services provide an online payments gateway, the quality may vary. Are some options superior to others?

Prioritise reputation and brand trustworthiness? We understand the importance of a reliable logo on your machine

Value exceptional customer service? If you’ve had a challenging experience in the past and want to avoid a repeat, we’re here to ensure your satisfaction.

Here’s a snapshot of our best merchant service providers for small and large business:

How much do merchant accounts and payments processing companies charge?

Payment processing companies can charge a variety of fees to merchants, and the charges will be mainly dependent on your turnover, the type of card machine you require and if you need online services.

Card processing fees vary massively as you will see on our merchant service comparison engine.

Here is a list of common fees payment processing fees charged my merchant service providers in the UK:

Card transaction fees: Every card payment taken incurs a small transaction fee, this is typically a % of the total sale value. If your business has a turnover of over £3000 this will make up the bulk of your charges. Data from our comparison engine show card processing fees vary massively from 0.28% – 3.5%.

Card machine/card reader fees: If you opt for a card machine (the more traditional machine) you will pay a monthly rental from £15-£25 depending on the type of machine you require (countertop, portable or mobile). Card readers (sumup or izettle etc) are often one off purchases of under £30 but more expensive varieties can cost up to £200. Card readers have more expensive transaction fees so it’s important to compare merchant services cost of both options thoroughly.

Payment gateway fees/online fees: Payment gateways allow e-commerce merchants to take payments online. Online sales command 2 types of charges: an online transaction fee, which is similar to the card transaction fee, typically 0.3%-2.25% and a monthly charge of up to £25.

Virtual terminal fees: Virtual terminal’s are used by merchants who need to take payments via the phone or email. The merchant account providers will typically charge a monthly fee of £10-£25 on top of the card transaction fee to include a virtual terminal. 

Authorisation fees: As well as a card transaction fee (%) the payment processor may also charge a flat fee of 1p-3p on top. KEY POINT : For a retailer with a low sale value like a corner shop the auth fee can drastically increase the value of the total bill.

Key Points: For a retailer with low sale value like a corner shop with auth fee can drastically increase the value of the total bill. 

1. Clover/Fiserv: Best all round merchant service provider. 

As the UK’s leading price comparison site for payment processing our most important review metric is price, regardless of how you wish to take payments: instore, online or over the phone Clover provides exceptional value. Transactions fees are typically low, with debit card processing rates starting from 0.35%. Although a min 6-month contract is typically required and Clover might not be best option for startups or businesses with a turnover under £3000, for everyone else Clover is a solid choice.

Service levels are also outstanding, our own platform data suggests over 96% of customers have remained with Clover 12 months after signing up with them, suggesting real brand loyalty.

Pricing

Transaction fees start at 0.35% for debit cards and 0.50% for credit cards (other card processing cost may vary). Transaction fees are dependent on card turnover and average sale value.

Card machine costs start at £14 for a countertop terminal, up to £20-£25 for a fully mobile card machine. ** Current offer available with up to 6 months free card machine rental.

Online payment gateway fee – Typically £15-£25 a month, importantly your card transaction fees remain the same as instore.

Virtual terminal – Typically £10 a month

Features and ease of use

Clover has a sliding scale for transaction costs, so as your business grows your costs will reduce. Clover also has an excellent virtual terminal and online payment gateway meaning businesses can scale without having to worry about using multiple providers.

Although the online payment gateway is not as easy to integrate or familiar for developers as Stripe, transaction costs mirror instore fees which would mean substantially lower costs (stripe charge 1.5% -2.5% per card transaction). The customer journey isn’t quite as slick as Stripe’s, but we would still rate clover’s offering a solid 4/5*

Clover’s card machine offering is also impressive, unlike many of the outdate designs provided by the likes of Worldpay, all Clover card terminals are touchscreen designs, easy to use and equally easy on the eye

Pros

Market leading transaction costs which get cheaper as you grow

One stop shop – Clover provides modern card machines as well as attractive online checkout and virtual terminal. All with the same low transaction costs 

Next day settlement

Solid customer service 

Cons

Not the best solution for those with a turnover less than £3,000

Tied to a card machine contract for min 6 months.

Standalone solution not as impressive as stripe or PayPal although significantly cheaper 

2. Sumup Air: Best for startups and retailers with low volumes per month. 

 Sumup together with the likes of Square and iZettle have changed the payments landscape in the UK over the last decade. They offer a card reader for a tiny one-off payment (£39) with no monthly contract, providing a perfect solution for anyone wanting to dabble with card payments. Sumup’s slightly lower processing cost of 1.69% vs 1.75% for the izettle and Square give it the slight edge over its rivals.

The Sumup card reader is very easy to use, just sync to the mobile app and off you go. The platform is extremely intuitive and customer service for startups is outstanding.

If your business makes sales of less than £3,000 a month or you need a backup for the odd occasion a customer wants to make a card payment, Sumup is the ideal solution for you. But if you’re starting to grow it might be time to switch to a traditional merchant bank such as Clover to keep your costs down.

Pricing

Card reader costs £39 as a one payment

Transaction costs – 1.69%

Virtual terminal – 2.5%

Gateway costs – 1.4% + 25p for Uk cards

** we would recommend using a different provider for both virtual terminals and payment gateways due to high fees.

Pros

Perfect solution for Startups or technophobes with a easy plug and play solution.

Competitive transaction fee compared to its peers

No contract

Very cheap card reader

Excellent customer service

Cons

Cheaper options available if monthly turnover is in excess of £3k

Online and virtual terminal costs are expensive.

Not suitable for larger businesses

3. Stripe: Quickest way to take payments online. 

Stripe is a market leader for online payments and has made its name by providing a quick and easy solution which integrates with pretty much any website.If you’re looking to offer an online payment solution and your current platform doesnt already do so, Stripe could be the solution for you.

Unlike with most merchant services, stripe provide instant approval for most, saving time on form filling. Stripe integrates with all major platforms including: Woocommerce, WordPress,Magento and Drupal amongst many others.

Customer reviews suggest the platform is very well built, reporting is outstanding and as the platform is so intuitive, training is rarely required.

Although we believe Stripe provides an outstanding platform, the transaction fees are significantly higher than a merchant bank, who would typically charge you the same card processing fees instore as well as online, with a small monthly fee for the gateway. This is the price you pay for instant approval and for and easy integration

Pricing

1.5% + 20p for Uk Cards

2.5% + 20p for Eu Cards

For payments via link 1.2% +20p for all uk cards

Custom pricing available for larger corporate clients

No monthly fees

Pros

Integrates to most platform via a plugin

Lower developer costs

Excellent reporting tools

Instant payouts

Cons

Expensive in comparison to a traditional

merchant service provider

Limited in person transaction offering

Won’t work with high risk industries

4. MyPos: Portable Card Reader – cheapest transaction costs for some. 

 Mypos standalone portable card reader is an effective competitor to Sumup, Square, and Izettle. Although the device perhaps isn’t as stylish as the other trio, it does most things the market-leading card readers do, and with a transaction fee of 1.10%+ 7p if your business takes few transactions but with a high sale value (over £300) then the low % cost can bank you a significant saving!

If you’re an established business we would still recommend an established traditional card machine and offering like Clover simply because it’s cheaper. But if you’re a builder who makes sales via card payment once in a while Mypos’s portable card reader could be the right solution for you.

The other key advantage of Mypos is that it’s a standalone device, unlike some of its competitors’ basic card readers, mypos’s portable card reader doesn’t require connection to a smartphone and is connected to the ether via a 4g sim card with no monthly costs.

Mypos merchant services have a solid backend and you can easily send digital receipts via SMS or email directly to the customer. Settlement is instant and the app is designed extremely well. There is a huge amount to like about Mypos as a whole.

Pricing

£39 one-off Reader cost

1.10% + £0.07 per transaction – Domestic and EEA consumer cards

2.85% + £0.07 per transaction for all other cards

2.45% + £0.07 per transaction for American Express

No monthly fees

Pricing is slightly different for online payments (we would recommend other options for online sales)

Pros

No contract and low transaction costs for high sale values

Standalone device, no need to connect to a phone

Instant settlement

App is cool

Cons

High pence per transaction (PPT), expensive for low sale value

Device could be more attractive

Competitors have more software integrations

5. Square Stand (iPad required): Best for retailers adding multiple items to a basket.

I know what you’re thinking, aren’t iPads rather expensive? These days you can pick one up for a few hundred pounds and together with the square stand, it can have a transformative effect on your checkout journey. The key advantage to the Square stand is that it allows you to display your products and services to create baskets more easily.

This can work particularly well for certain businesses like restaurants or food vans, as you can see from the image above it makes the process of identifying what the customer wants much easier and therefore makes the checkout process quicker and more interactive.

The tech is pretty smart too, the card reader is built directly into the stand and interacts with the iPad seamlessly. The swivel stand neatly allows the retailer to add up the products sold and swivel around for the customer to see itemised billing and costs. The minimalist design looks great in any surrounding, leaving your countertop clutter-free.

The square stand won’t be for everyone, it’s more costly than other simpler merchant service options which would work perfectly fine for most businesses but could be particularly useful in the food and beverage sector.

Pricing

A one-off fee of £99 + VAT for the stand (Does not include the price of the tablet)

1.75% for all transactions

Pros

Fantastic for retailers will big stock lists i.e restaurants

Swivel stand looks great and easy to usehttps://cardmachine.co.uk/finding-the-cheapest-merchant-service-provider-for-your-uk-business/

Simple and transparent pricing

Cons

Tablet is required which can be expensive especially

if multiple terminals are needed

Transactions costs are much higher than traditional providers like Clover

Requires stock management inputs Verdict

If your business has grown to over £3000 of card turnover per month, Clover will likely be the most cost-effective solution for your business. They provide a wide range of card machines and their online offering is excellent. Above all else, the pricing is significantly cheaper than the alternative mentioned so if this is what matters to you, stick with Clover

 If you’re just starting or require a different style of machine Square, Sumup and Mpos now provide excellent alternatives depending on your requirements, whilst Stripe has long been the merchant’s service provider of choice for online sales if you want to get up and running quickly.

Source: https://cardmachine.co.uk/finding-the-cheapest-merchant-service-provider-for-your-uk-business/