Credit card payments & the itinerant bookseller

At the recent AGM for the PBFA, I was asked to look into the various options available for booksellers to take credit card payments at fairs. Well I haven’t forgotten, and have been doing lots of digging and chatting over the last few weeks.
I am assuming here, that this is aimed at the small to medium bookseller, rather than those with a shop and several staff (who probably already have credit card facilities lined up). When I had my shop, I had a card machine that I could take around with me. This worked well, but cost me a rental of £25 per month plus standard transaction fees. Not so good if you only do one fair a month.

The good news is that there are several ways for us to accept credit card payments, and most of them are now far cheaper than this. This obviously isn’t a definitive guide – but it does offer you some options to choose from.

Ultimately, these all work in the same way. There is a small device, or reader, which connects to your mobile phone or tablet. These only work with smart phones with wi-fi or 3/4G access as they need to connect with the provider. Once the payment is taken, you can either print (if you have a portable printer) email, text or hand-write a receipt. A common problem with these devices, is that they are only as good as your phone internet signal. No signal, no transaction! Beyond these features, each differs slightly

Barclaycard Anywhere

 Method: A reader attaches via a cable to your headphone socket on your device. This costs £29.99 + barclaycard_picVAT if you have a Barclays Business Account – otherwise £60 + VAT.
Transaction cost: 2.6% of each transaction. No monthly cost or fixed contract. One drawback is that you cannot take customer not present payments.
The App allows you to keep an eye on your account and see reports. As this is offered by Barclaycard, it is reassuring to customers.
https://www.barclaycardanywhere.co.uk/apply/

Izettle

Method: There is a choice of two readers. The “Card reader lite” attaches to your phone via a cable. This is free to the business. There is also a “Card reader Pro” which cost £79 and operates via Bluetooth. This will also take contactless payments. Now that these are up to £30, this is a real plus. Using an App on izettle_readeryour device, you can manage payments and your account.
Transaction cost: These are on a sliding scale. For £0-£1999 per month these are at 2.75% This then falls by small increments with each increase in turnover. So £4,500 would cost 2% After £12,850 per month (oh if only) the rate drops to 1.5% where it remains. There is no monthly cost to this. No fixed contract.
There is also access to izettle where you can see reports and follow up on transactions. I cannot see from their website whether you can take customer not present payments via the website. Perhaps someone who uses this system can comment on this.
www.izettle.com

Gerry Mosdel recommends this service, and says it has worked well for him. If you use his link to sign up, you will get free transactions when you start: https://www.izettle.com/d/UT47VQ

Paypal

Method: The reader is a Bluetooth reader. This costs £59.95 (until the end of October). The reader can take chip and pin or contactless payments.

Transaction costs: 2.75% per transaction. However, if the payment is taken via the magnetic strip (npaypal_readerot chip and pin) or customer not present then the fee is 3.4% + 20p. If taking money from overseas, then paypal’s exchange rate tends to be quite punitive. No monthly fees or set term.

One important thing to note here, is that the payment goes into your paypal account – not a bank account. On the other hand – the payment is credited to your account immediately.

http://www.paypal.com/paypal-here

Worldpay Zinc

Method: Payments can be taken via the card reader or online. The card reader is a blue tooth device, which currently costs £39.99 (or £29.99 – see below). The website has reports, but also has a page for taking Customer Not Present payments. This is the system I use, and it is handy for taking payments over the phone from customers.

Transactiozinc_appn costs: There are two tariffs with Zinc. If you expect to be an occasional user, then there is a 2.75% tariff with zero monthly cost. If you expect a busy month then there is a 1.95% tariff – but a monthly cost of £5.99. You can switch between the two tariffs each month – so you can set it to the zero fee setting, but phone up and change if you go over £800 (which is when it is worth changing). The new tariff will apply to the whole month.

This is offered by Streamline – who provide a large number of the credit card facilities in shops – this is their “small business” offering.

http://www.worldpayzinc.com If you wish to sign up using this link: ttp://wpzinc.me/2Ya7KnyTYR then you can get £10 off the device.

The price comparison bit

As book dealers, we are not consistently busy. For a comparison here, I have assumed there are 4 months where we take nothing at all. 4 months where we take £400. 2 months of £800 and two months of £3000 (half of which is overseas dealers). This way, we can compare and individual seller, who does a few fairs, and has a reasonable York and ILEC. I have included transaction fees and any monthly cost.

Barclaycard Anywhere: £218.40

iZettle: £209.40

Worldpay Zinc: £194.16

Paypal: £250.90

Conclusion.

Obviously you will need to do your own calculations, based on your turnover. But in general, if you only use the reader now and again, and expect a very low turnover, Barclaycard Anywhere is cheapest. If you are hoping to take anything over £7000 per year on cards, then the Worldpay Zinc is cheapest. If contactless is important, then Zinc becomes more attractive, particularly for the lower turn over. Whichever you choose, the best of luck, and may your transactions be many and large

The UK Consumer Rights Act – the impact for booksellers

legal pic

The introduction of the Consumer Rights Act is important for all retailers.

It applies to anyone selling “any tangible moveable items” so that applies to books, manuscripts, ephemera, maps and pretty much anything that a member of the book trade could sell (except their premises.) The first thing to remember is that for all the jargon, this isn’t too bad for the trade, and any difficulties it may present us can be overcome with professional conduct.

The new legislation assumes that consumer rights form part of our contract with the client. Any goods sold to a consumer must be “of satisfactory quality, fit for purpose and matching its description.” (ATG, issue 2211). Clearly, when dealing with rare and second hand items, the condition is unlikely to be “new” or “as new” so any description made by a bookseller must by its nature be somewhat open to interpretation. It is to avoid this that good bibliographical and condition descriptions become important. (for an excellent and handy guide to proper bibliography, see Laurence Worms excellent new guide “Cataloguing for Booksellers.” *) Once sold, a consumer has rights under the 30 day rule.

This simply means that under the new legislation, a consumer can return to the seller within 30 days if the item is not fit for purpose, or as described. With rare / second hand items, the opportunity to offer a replacement are limited, so the consumer has the right to reject the goods, or to obtain a price reduction.

For those items sold in person, condition has been ascertained, so it is only likely to become an issue where a consumer later notices defects not clearly specified (such as missing plates, or a miss-attribution of date / edition). With distance selling, the description is of more importance than ever. But ultimately, the members of the trade associations should be protected by our professionalism. If we describe correctly, we are safe. If we make errors, we must give refunds.

What this really boils down to in terms of work for members of the trade, is that our “terms and conditions of sale” will need to reflect a willingness to accept returns within 30 days if the goods are not “as described.” We should all be aware that whether we update our terms and conditions or not, we will have to abide by the legislation, and that it overrides any contrary terms we may try to impose.

Finally, there is an important exemption in the Act that will affect many of the trade. The act talks of Consumers. A consumer is a member of the public who makes a purchase. If we are selling to another retailer, then these are considered “trader to trader” contracts, and so are outside the reach of this legislation. Phew!

*published by the Rare Book Society. http://www.ashrare.com/cataloguing.html The entry for this item on Mr Worms website is a beautiful example of his preferred form of description!