iZettle review – Simple yet feature rich card payment solution for small businesses

• Highs: Best mPOS app. Best card selection. Highly competitive 1.75% rate for all cards.
• Lows: Receipt printers are extra. No phone support after 5 pm unless you pay a monthly fee.
• Buy if: You want an easy solution for taking payments that comes with tons of free extras to grow your business.

You get more than payment processing

As consumers become reliant on the benefits of cashless shopping, debit and credit cards are fast becoming the way to pay.

Put simply, not accepting cards means lost sales. Many entrepreneurs and small businesses find traditional point of sale (POS) solutions too costly, however. Application processes also have a reputation for being overly strict, and slow.

iZettle promises to change all that. Its compact card readers work in tandem with a clever smartphone app, meaning sellers can take payments just about anywhere, any time. The system operates on a pay as you go model – which has been a big part of the reason why iZettle gained popularity in the UK.

Yet iZettle is more than card processing. Several free tools are included. In addition to the point of sale app, which works as a touch screen POS system, merchants get marketing, bookkeeping and sales analytics tools. iZettle customers can also get access to small business financing based on sales history.

The company even offered a free card reader to lure those wary of signing up, although we find the new iZettle reader (special offer here) is a much better deal.

On paper, iZettle appears to be the card payments solution sole traders, entrepreneurs and start-ups alike have been waiting for. Yet in the UK, does iZettle live up to its promise to level the payments playing field? Gain insight into all these issues, plus learn the basics about the iZettle system, in this comprehensive review. 

iZettle – the low-down

Additionally, we found rates offered by iZettle to be competitive in today’s POS marketplace. There are no monthly fees, and the set transaction fee has just been lowered to 1.75% regardless of how much you process (the rates previously decreases as your usage went up). Negatives are a lack of phone support after 5 pm weekdays and in weekends, and the extra cost incurred if you need a receipt printer.

To sum up – For small businesses, entrepreneurs or sole traders on the go, iZettle is definitely worth considering.

How does the iZettle Chip and PIN machine work?

iZettle’s card readers are easy to use: the merchant sets the amount to be charged in the app and hands the card reader over to the customer, who inserts the payment card and keys in their PIN number.

Inventory items can also be pre-programmed, complete with names, prices, descriptions and even images. Clicking on a product image allows items to be charged quickly. As such iZettle is more than a payment terminal – the free app is a POS system in its own right with the iPad working as a cash register.

To make the system more useful for accounting purposes, cash sales can also be recorded in the system the same way

The iZettle Reader with the iZettle Dock makes for a sleek store front with easy charging of the terminal.

iZettle charges: How hard does iZettle hit you in the pocket?

We found iZettle’s fee structure to be simple and straightforward – and best of all, relatively low when compared with other POS systems in the marketplace.

The card reader itself is extremely good value. The wireless iZettle Reader costs only £59.00 excl. VAT. (Exclusive offer for our readers: £25 excl. VAT through this link).

The charging cradle, iZettle Dock, costs £39.00 excl. VAT. in the iZettle accessories store, or can be purchased in a bundle with the iZettle Reader for new customers (offer for our readers: only £49.00 excl. VAT).

There are no fees for refunds, and there is no added charge for foreign cards. iZettle also provide you with a chargeback protection up to £250 per month if you follow “best practice”.

Funds are deposited daily. They are credited to the seller’s bank account two to three banking days after the transactions took place.

No merchant account required

A big bonus with iZettle is that there is no need for a merchant account or separate contract with a merchant services provider. All you need is a bank account registered in the name of your business, (if you have a business account), or in your own name for a private account.

Transaction limits

iZettle does have transaction limits, yet these are unlikely to affect most business accounts, as the daily limit is £200,000. Transaction limits are, however, lower for private accounts. Transactions made using the magnetic stripe are subject to a daily limit of £100. The minimum transaction possible with iZettle is £1.

For more details, read iZettle’s transaction limits: the full story.

How does iZettle’s payment technology stack up?

Similar to more traditional POS systems, central to the iZettle platform is a credit and debit card reader, known as a “Chip and PIN” machine. Several models of iZettle machines have been available over the years – including the “Pro” contactless reader and the simplified “Lite” variant – but in the summer of 2016 iZettle replaced them with what it simply calls “iZettle Reader”. 

In addition to the card reader itself, you’ll require a compatible smartphone or tablet on which to run the iZettle app. The app is free and available on Apple iOS (iPhone, iPad) and Android platforms.

NB: iZettle was initially only able to accept contactless payments and Apple Pay when it was run with Apple’s iOS. iZettle’s completely overhauled app 3.0 for Android now supports contactless payments as well.

Not only does this make the iZettle system portable for use almost anywhere, but it also reduces overall POS costs significantly.

Whom is iZettle suitable for?

The iZettle platform is suitable for all trades and sectors: it’s currently being used by a range of merchants, from plumbers to barbers, book shops, street vendors, hair dressers, taxi drivers to coffee shops.

The mobility iZettle offers is especially useful when taking payments at trade fairs, markets, pop ups and car boot sales. Here, in fact, iZettle’s Chip and PIN machines really come into their own.

Many sole traders use iZettle, but the app also allows for unlimited staff accounts with individual restrictions, so it is suitable for businesses with employees as well.

iZettle is not yet offering a table chart sand split tenders which might be required for a fully fledged restaurant POS, but it is definitely suitable for smaller food and beverage outlets such as coffee shops. We have seen it in use by a London coffee chain.

Expanding to a full Point of Sale system

For most businesses the functionality in the iZettle app is sufficient. If inventory control and more advanced POS features are required, iZettle integrates with iPad POS systems like Intelligent POS, Vend and Lightspeed, which would start at an additional £29 per month.

The most seamless experience is likely found with Intelligent POS, which was acquired by iZettle in 2016.

After an iZettle transaction is processed, there’s an option to send a receipt via email or text message. Printed receipts are also possible, although you’ll need to invest in one of several receipt printers compatible with iZettle. The system can also be expanded with a cash drawer and barcode scanners.

Businesses selling from a till will probably opt for using an iPad or Android tablet with on a tablet stand.