TH E BU SI N E S S PAY M E N T T E R M IN A LS
With cash use declining, here’s what you need to know when choosing a payment terminal. WORDS PETER CRUSH
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hile Covid-19 decimated business activity temporarily, its effect on cash has been more permanent. In 2020 the number of UK transactions in notes and coins plummeted by 35%, and five in six UK payments (£166bn) are now made without cash. Payment is almost exclusively the preserve of tap-and-go terminals – boosted by a maximum limit of £100. This alone saw card payments jump by another 30%, according to UK Finance. But while the technology is easy for consumers, barbershop and salon
owners have a variety of providers to consider and questions to answer before selecting the right one for their business.
No contract vs rental The trade-off for not having a contract is a higher transaction fee. Zettle and SumUp offer card readers for £19 and £29 respectively, or terminals for £149, with no monthly fees or contracts – but they charge 1.75% and 1.69% per transaction. Dojo charges £20 a month and fees of 0.3%to 2%. But it also offers turnover-dependent contracts – a monthly rolling contract for businesses earning more than £150,000 per year, and a six-month initial contract for firms earning less.
WHAT ABOUT TIPS? Tyl (from NatWest) allows vendors to set suggested tip percentage amounts in its app, which clients can then accept. SumUp has a ‘smart tipping’ function, in which clients can choose from dynamic tipping options based on the transaction amount. Zettle can be set up to ask the client if they would like to add a tip. If yes, they must add the amount manually.
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