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

By | 2017-09-07T04:31:17+00:00 March 7th, 2017|Tags: , , , |
Our rating(4.5/5)
The wireless iZettle Reader lets you accept the broadest range of cards and contactless payments, with a superior app.
Living up to its reputation as a mobile payment industry leader, iZettle is an easy way for entrepreneurs, sole traders and small businesses to get started with card payments. The iZettle Reader is the most advanced in the app based terminal market in the UK, meanwhile a competitive rate of 1.75% is complimented by a wide selection of cards.
  • 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.

Special offer for MobileTransaction readers

As a MobileTransaction reader, get the iZettle Reader for only £25.* Regular price £59. No monthly fees or contract to worry about.

MobileTransaction is an independent payments industry resource that is trusted by over a million small businesses yearly.

We allow solution providers to offer product discounts for the benefit of our readers. These discounts do not influence our editorial content such as reviews or recommendations. Rating scores are based on full retail price. (Full policy)

* Offer to new business users. 

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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.

lite-stylistPut 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.

No monthly fees

There are no monthly fees and no minimum contracts with iZettle. You pay only a transparent transaction fee of 1.75%.

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

iZettle is known as an industry leader, and it’s not hard to see why. A pioneer in mobile point of sale, (mPOS), iZettle launched a new card reader in July 2016 with longer battery time, faster payment processing and contactless payments via cards, Apple Pay and Android Pay.

The previous free “Lite” model and the Contactless Pro model have been discontinued, but we find the new iZettle Reader to be a far better option. If you’re looking for a cable-free storefront solution that, or just for more features, we reckon the iZettle Reader is a market leader.

More positives about iZettle include its acceptance of the broadest possible range of credit and debit cards – Visa, MasterCard, Visa Electron, V pay, Maestro, American Express, JCB, Diners Club and Union Pay – as well as its feature-laden, yet highly usable app.

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

izettle-fam-uk

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).

In addition, there are no monthly fees, rental charges, monthly minimums, or other fixed costs. Merchants are charged for sales only, and unlike most of iZettle’s competitors, there is no fixed charge per transaction. Up to September 2017, iZettle’s fee system operated on a sliding scale, with transaction rates starting at 2.75% and dropping for sales over £1,500.

The rate is now very simple: 1.75% for all cards.

What do you pay?

1.75% per transaction for all cards.

No additional fee for foreign cards
No additional fee for premium cards

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”. 

ios-androidIn 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.

Connect to WiFi or 3G with iZettle

iZettle’s card machine connects to the smartphone or tablet being used, and therefore, the Internet, via Bluetooth. The earlier Lite version connected via cable, but it has been discontinued in favor of the faster Bluetooth option. The iZettle app can connect to iZettle’s servers using either WiFi or 3G. However, we’ve also seen reports from users indicating they’ve had no problems using slower connections, such as EDGE.

Ease of processing

The iZettle reader is not a stand-alone machine – it uses your smartphone or tablet to actually process the payments. This is the essence of the iZettle solution: in contrast to conventional POS terminals that use landlines or a GPRS SIM card, iZettle’s mPOS system smartly utilises the processing power and Internet connection of your smartphone or tablet, meaning there is no requirement for complicated custom hardware.

Charging with USB cable or iZettle Dock

The card reader is charged via a micro USB cable. It will go automatically into sleep mode when not in use, and the battery therefore lasts longer than the older versions, which received complaints for short battery life.

Businesses selling from a fixed location or a desk would want to use the card reader with iZettle Dock, a cradle which charges the reader. This will eliminate all battery worries, as the card terminal is charged when it rests in the cradle. We found that the iZettle Dock makes the iZettle check out experience even more impressive.

All major debit and credit cards accepted

Of all UK mobile payment providers, iZettle supports the widest range of payment cards. iZettle Reader can process Visa, MasterCard, American Express, Visa Electron, V Pay, Maestro, Diners Club, JCB and most recently, Union Pay.

Fees remain consistent, no matter what sort of card is used.

mastercard amex maestro electron diners jcb v-pay

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.

A sleek card machine; also an accounting system

iZettle keeps a record of all sales, and full sales reports are available – including cash sales, if they are recorded via the app. Free analytics tools are included to help keep track of inventory and identify repeat customers, as well as helping to spot business trends, such as revenue growth and top-selling products. All reports are able to be exported to Excel or csv files.

For those who require bookkeeping beyond what the iZettle backend can offer, the system can be integrated with cloud accounting system Xero and the invoicing and accounting system Debitoor.

Integrate with Xero

To take accounting a step further, iZettle can be fully integrated with the online accounting software, Xero. Offering all the standard features of an accounting system, it also includes payroll.

Read more: Xero integration with iZettle

Changing the way small businesses take card payments

Given the ingenuity of the mPOS payment model, it’s not surprising iZettle is not the only company to have introduced a mobile card reader. The mPOS craze kicked off in the US with Square, before rapidly spreading to Europe and the UK. Since then, mPOS has radically changed the way small businesses take card payments. Competition in the UK is now fierce (see our comparison chart).

iZettle's founder and CEO Jacob de Geer

iZettle’s founder and CEO Jacob de Geer

The mPOS market has come on in leaps and bounds, even when compared to just two years ago. Rates have declined, apps are more feature-laden and there are a bunch more providers to choose from.

Previous iZettle reviews we read suggested the Swedish company was quick to become the “go-to” option in the UK. User feedback appears to back up this opinion.

Despite iZettle’s success, in 2014, new platform SumUp became a formidable contender for most popular mPOS system. Its flat 1.95% rate was quick to see rapid uptake amongst SMEs and entrepreneurs. Yet in 2017, iZettle appears to have again taken the upper hand. Having been the first mPOS provider to offer contactless payments in 2015, the new Reader launched in July 2016 processes payments faster and has longer battery life than PayPal Here and SumUp.

With the backing of MasterCard, American Express and Santander among others – and with funds of more than £153m raised so far – iZettle is now well positioned in the battle for global mPOS expansion.

  • Best mPOS app.
  • Fast card processing.
  • Best card selection.
  • Charges go down with increased monthly use.
  • Can be expanded into a full POS system.
  • Receipt printers are extra.
  • No phone support after 5 pm.
  • Buy if: You want an easy mobile solution for taking card payments, or a fast card terminal with a free POS system for taking payments in a store.
Sign up for iZettle here
Name of Reviewed Item: iZettle - mPOS system Rating Value: 4.5 Image: https://www.mobiletransaction.org/wp-content/uploads/2016/05/izettle-dock-yellow.png Review Author:Review Date: