Gabi James - 7th Jun, 2023
Here we explore how you can find the most cost-effective Point of Sale system and save a bundle on processing fees.
Welcome back to our series dedicated to helping you find the right POS system for your business! For an overview of what the series is all about, have a look at our introductory POS blog post. And make sure you catch up on our deep-dive into multi-channel solutions, and the importance of simplicity.
In yesterday’s POS systems article, we thought about the importance of providing an easy and quick payment method at the point of sale. Because we all know time is money.
But so is – well, money. And while you don’t need to scrimp on something as pivotal as your Point of Sale system, you also don’t want to spend unnecessarily.
So today’s blog post is all about finding the most cost-effective POS system without cutting corners, sacrificing functionality, or putting sensitive information at risk.
Unfortunately, the POS systems that dominate are unnecessarily expensive. Card transactions and digital wallets bring significant processing fees that mean a percentage of every sale is taken by a third party.
On top of that, you’re likely paying a per-transaction fee, and very often a subscription to your POS system provider. Plus, you have to shell out for the hardware needed to process these transactions!
Let’s take a look at some of the most popular Point of Sale systems to illustrate the associated processing fees.
Square offers a popular and robust POS system. The processing rate for transactions varies according to the payment method:
Another widely used provider is Stripe. Their fees are:
If currency conversion is required, there’s an additional 2% fee on top of the above.
With Shopify, you’ll have a monthly subscription fee of at least £25, plus these per transaction fees:
All of these fees and percentage deductions can add up fast. Especially if you have high-volume transactions, or are selling frequently and using a POS system that adds a flat fee on top of its percentage deduction.
But thankfully, there is another way.
If you add instant Open Banking transactions to your current payment methods, you can save a bundle.
Look at Wonderful’s pricing model: we don't calculate our fee based on the value of each transaction.
In fact, with our intuitive One app, you pay £9.99 per month for 1,000 transactions - (that's just 1p per transaction).
One is a simple and intuitive mobile app that allows businesses to slash transaction fees, bill for any product or service, and request instant payments via QR codes or secure links. 1,000 transactions, for just £9.99 per month (1p per transaction).
That’s right: for just £9.99 each month, you can take 1,000 payments! Compared with the ever-growing mountain of per-transaction fees and deductions, that means enormous savings for almost every business or service provider, whether you’re selling hand-knitted scarves, teaching ESL one-on-one, or selling thousands of pastries each day.
How can we offer such a generous model? Because we don’t need to factor in the huge expense of processing card payments. We cut out the middle man, so customers move money directly from their bank account to yours. And remember, you get a free 14 day trial with no strings attached to see why Open Banking is at the forefront of POS technology!
To future-proof your business, provide Open Banking instant bank payments at the point of sale.
Not only will you get the newest, safest and most cost-effective payments technology, but you’ll enjoy a whole host of benefits like:
Plus, our friendly team is on-hand to support you through the simple onboarding and integration process, so that you can have instant bank payments sitting alongside your existing methods in no time. Get started today!
And come back tomorrow to learn more about POS systems and how you can move from weekly or monthly deposits to instant payments.
