How Much Does Zettle Cost UK Businesses?

Zettle by PayPal’s in-person card processing fee is 1.75%, while its cheapest card machine, the Zettle Card Reader 2, costs £29 + VAT.

Crucially, Zettle is a zero-contract provider and charges no monthly merchant account fees or additional fees for PCI compliance. This makes it a great merchant account option for businesses that need flexibility and want to start taking payments quickly.

While Zettle’s 1.75% fee for in-person card processing is relatively high, it’s offset by the lack of recurring monthly fees. That said, businesses with a high monthly card turnover can get better value for money with competitors that offer negotiable, custom processing fees. We’ll explain all of Zettle’s fees and pricing in this in-depth review, so you can decide if it’s right for your business.

Zettle’s Transaction Fees

• 1.75% for card payments and PayPal QR code transactions
• 2.5% for online payment links and invoices
• 3.4% + £0.20: for manual card entry (non-present card transaction)

Zettle offers fixed-rate transaction fees of 1.75% for in-person card transactions and 2.5% for transactions made via payment links and invoices.

You’ll also pay 1.75% for PayPal QR code transactions, though for non-present card transactions, where you enter a customer’s card details yourself, you’ll face a higher 3.4% + 20p rate.

Although Zettle’s transaction fees aren’t cheap, they are in line with the industry average. Plus, Zettle’s rates are the same for most major card brands, including American Express, a rarity in the payment processing industry.

Zettle also states that custom transaction rates are available, however, they are subject “to a specific agreement between the parties… entered into at [Zettle’s] sole discretion”. In general, providers like Zettle only offer custom fees to businesses with a high card turnover.

How Much Does Zettle Hardware Cost?

• Zettle Card Reader 2: £29-£68 + VAT
• Zettle Terminal: £149-£249 + VAT
• EPOS Till Systems: £169-£619 + VAT

Zettle card machines

Zettle’s cheapest card reader, the Zettle Card Reader 2 costs £29 + VAT for the first reader, and any subsequent readers you purchase will cost £59 + VAT each. This is a one-off cost, so you will not have any monthly fees, which means you aren’t locked into a contract or subject to any hidden fees.

With the addition of a dock, the total price becomes £68 + VAT for your first card reader, and £98 + VAT for any additional readers.

With a £29 starting price, the Zettle Card Reader 2 is one of the cheapest card readers of the payment processors we compared, similar to low-cost hardware by Square at £19 + VAT, and beating Tyl, which has an ongoing fee of £9.99 per month for its cheapest card reader.

If you want a comprehensive EPOS setup, Zettle’s Payment Terminal starts from £149 + VAT.

It consists of a touchscreen EPOS system and a payment terminal, which will better suit larger enterprises or businesses that are scaling, so you can manage an EPOS system and take card payments in one go. It offers a free EPOS system, which provides you with basic EPOS features, such as inventory tools, sales reporting and employee management, meaning you won’t have any additional fees to pay for software here.

If you add a receipt printer and charging dock to the mix, you’ll pay £199 + VAT for the Zettle Terminal, and if you add a barcode scanner, the total goes up to £249 + VAT.

You can use multiple hardware devices simultaneously on one Zettle account. Therefore, if you would like to add to your hardware options over time, that is possible, too.

Zettle EPOS till systems and accessories

Zettle lists a range of hardware kits, or “till systems” that can be purchased to be used with Zettle EPOS software.  Here’s a full list of the till systems:

• Store Kit Mini (£169 + VAT): An iPad stand + the Zettle Card Reader 2 and dock
• Store Kit Food & Drink (£419 + VAT): An iPad stand + the Zettle Card Reader 2 and dock + an Epson receipt printer
• Store Kit Retail (£619 + VAT): An iPad stand + the Zettle Card Reader 2 and dock + an Epson receipt printer + a barcode scanner
• Store Kit Configuration (from £347 + VAT): Create your own kit
• Store Kit Mobile (£259 + VAT): Zettle Card Reader 2 + an Epson mobile receipt printer

It is worth pointing out that Zettle hardware is compatible with third-party devices, though there are some restrictions depending on the specific device.

Zettle also sells hardware and accessories separately. These include the following:

• Docks: £39-£89+ VAT
• Cash drawer: £49 + VAT
• Barcode scanner: £219 + VAT
• Tablet Stand: £99 + VAT
• Printers: £189-£319 + VAT

Does Zettle Have Any Hidden Fees or Charges?

No, Zettle doesn’t have any extra or hidden fees. Zettle charges per transaction – 1.75% for card transactions, and 2.5% for payment links or invoices – and has no monthly fees or PCI compliance fees.

It also doesn’t charge a fee for declined card transactions, which means you won’t lose any money if this happens. Nor does it charge for refunds. You’ll even have cover for up to £250 in chargebacks per month.

Lastly, Zettle doesn’t charge for any of its non-payment processing services and tools. This means that Zettle Invoices and Zettle POS, Zettle’s EPOS  software app are free to use forever.

Zettle isn’t the only provider to offer free EPOS and Invoicing – Square and SumUp also offer free equivalents. However, Square and SumUp both offer more advanced, paid versions of these tools, on top of the free version, whereas Zettle only offers free tools.

How Does Zettle Pricing Compare With Other Merchant Account Providers?

Here’s a quick look at the prices and fees you can expect with other top-rated mobile merchant account providers.

Our in-depth research into the best mobile card machines found that Zettle’s transaction fees are competitive among the big players – albeit not the cheapest in the UK market.

For instance, in-person card transaction fees are often slightly cheaper with other providers, such as SumUp (1.69%), Tyl (1.39% + 5p), Stripe (1.4%) and Revolut (0.8% + 2p). Though, it does match Square at 1.75%.

But there’s more to it than just in-person card fees, so let’s compare a few providers with Zettle to illustrate how its pricing sits in the market.

Revolut vs Zettle pricing

As we discussed in our merchant account comparison, Revolut offers the cheapest transaction fees, from 1% + 20p for online transactions and 0.8% + 2p for in-person transactions. However, its hardware is slightly more expensive than Zettle’s, costing from £49.

Revolut’s transaction fees are technically cheaper, but, depending on the size of the transaction, Zettle’s could take less of a cut if you have many small transactions. We’ve worked out that, for any transactions below £2.11, you’ll be better off with Zettle.

Square vs Zettle pricing

Square and Zettle charge the same fees for in-person transactions, 1.75%. However, Square offers cheaper fees for online transactions, at 1.4% + 25p, compared to Zettle’s 2.5%.

When it comes to hardware, Square has Zettle beat. Square’s £19 Square Reader remains the cheapest option on the market, a full £10 cheaper than the £29 Zettle Card Reader 2.

SumUp vs Zettle Pricing

SumUp offers slightly lower in-person transaction fees than Zettle, 1.69% compared to Zettle’s 1.75%. Plus, with a £19 per month SumUp One subscription, businesses can get access to even lower fees, paying 0.99% on all transactions, including online and invoices.

This is, of course, slightly offset by the additional monthly fee, but it makes SumUp a better option than Zettle for businesses with a high card turnover, for whom saving on transaction fees will make a bigger difference.

Does Zettle Offer Good Value Overall?

Comparing pricing with other merchant accounts and card reader providers is one thing. However, assessing whether Zettle’s overall service is good value for money is another.

What features does Zettle offer as a merchant account?

Zettle performed very well in our testing as a merchant account. Namely, it has a comprehensive and free EPOS system for users, advanced inventory management and sales analytics for its flexible payment options (contactless, chip & pin, mobile wallets, invoicing, etc.) and multi-currency support. Plus, there’s no contract tying you down.

Being a huge company with an international audience, PayPal’s Zettle is highly compliant, too, with strong security measures that mean you shouldn’t worry about the safety of your finances. It also has excellent customer support options (phone, email and online help centre) for similar reasons, providing round-the-clock care.

Zettle also has a wide range of integration options, including with other POS systems such as Lightspeed and Goodtill, accounting software like Xero and Quickbooks, and e-commerce platforms such as Shopify or WooCommerce. By comparison, options such as Tyl have limited compatibility with third-party apps and services, which could restrict your ability to streamline operations across different business tools.

Where did Zettle’s card reader perform well in our user testing?

An important thing to consider is the usability of Zettle’s hardware. After all, its card readers will be crucial to securing in-person purchases from your customers.

• Our testers were most impressed by the lightweight and portable feel of the Zettle Card Reader 2, suitable for on-the-go business operations, while also retaining a modern and sleek look.
• Users also highlighted the simplicity of the information architecture and how shallow each menu option was for the user. This could help reduce the total service time of each transaction, and time is money after all.
• Third, our testers also enjoyed having the bevelled buttons as opposed to a touchscreen to help provide feedback that they were entering their pins. This could be especially important for the more than 2 million people in the UK who have a visual impairment, according to RNID.

Could Zettle’s card reader improve its usability?

There were also some downsides to the hardware, as reported during our usability testing. These are some areas that you may need to consider:

• A significant number of participants noted the lack of privacy when entering a pin on the Zettle Reader, unlike other competitors such as Barclaycard.
• Navigation naming was found to be a little confusing and unfamiliar for some users, noting that it wasn’t always immediately obvious what was being clicked on in the accompanying POS app.

What businesses are best suited to Zettle?

Because of its streamlined software functionality, Zettle offers a simplified and user-friendly EPOS system, making it ideal for food trucks with a limited number of items and little need for complex features.

Its 100% iPad or phone-based interface is perfect for on-the-go businesses, providing all the necessary tools to start selling. And given its free EPOS system, it’s a low-cost option for owners who want to sell without ongoing fees.

On the other hand, Zettle’s hardware lacks offline payments, which isn’t ideal for more remote businesses where Wi-Fi or cellular connections could falter. Its lack of variable transaction fees could mean that other merchant accounts offer better value in certain ways, too.

How We Test Merchant Account Providers Such As Zettle