📢 Attention small business owners! 📢

Have you ever been caught off guard by a long and expensive contract when signing up for a card machine package?  Well, we have some great news for you! The UK's Payment Systems Regulator (PSR) has stepped in to protect businesses like yours from these unfair practices. Let's dive into what this means for you.

For years, traditional merchant service providers and acquiring banks have been sneaky about disclosing hidden costs and locking businesses into lengthy contracts. But fear not! A decade ago, new card reader companies emerged with no-contract solutions at affordable prices. Finally, small businesses could breathe a sigh of relief...

However, some providers were slow to adapt and continued to trap merchants in inflexible contracts lasting 2+ years. That's where the PSR comes in. They conducted a market review and identified the key issues: long contract lengths, lack of transparent pricing, and difficulties switching providers. In response, they implemented new regulations in 2023. 

So, what are these new rules?  Let us break it down for you. One of the PSR's directives, known as Specific Direction 16, focuses on limiting the length of initial terms for point of sale (POS) terminal contracts. If your annual card turnover is up to £10 million, your merchant contract should not exceed 18 months. After that, it must transition to a rolling monthly contract. 

But wait, there's more! Payment companies must also ensure that any contract termination fees are transparent, cost-based, and fully explained upfront. No more surprises! 

Starting in July 2023, payment companies will even be required to notify their merchants at the end of their contract term that they could find a better deal elsewhere. Talk about looking out for your best interests! 

Now, you might be wondering which payment companies these rules apply to. Well, here's the list of the 14 key PSPs that must follow these regulations from January 6th, 2023:

1️⃣ Adyen
2️⃣ AIB Merchant Services
3️⃣ Barclays Bank
4️⃣ Chase Paymentech
5️⃣ Elavon
6️⃣ EVO Payments
7️⃣ First Data/Clover
8️⃣ Global Payments
9️⃣ Lloyds Bank
🔟 PayPal
1️⃣1️⃣ Square
1️⃣2️⃣ Stripe
1️⃣3️⃣ SumUp
1️⃣4️⃣ Worldpay

And guess what? If these PSPs provide their services through a third-party POS terminal provider, they must ensure that the provider also follows the rules. So, practically all card terminal rentals in the UK will be affected! 🇬🇧

If you come across any payment service providers who are not complying with these regulations, don't hesitate to report them to the PSR. Let's hold them accountable! 

So, my fellow business owners, rejoice! No more long and expensive contracts lurking in the shadows. The PSR has your back, ensuring fair treatment and better deals for all. Now go forth, explore your options, and make the most of this newfound freedom! 

If you found this information helpful, feel free to share it with other small business owners who could benefit from these changes. Together, we can create a more transparent and fair business environment. 🤝

#SmallBusiness #CardMachineContracts #FairTreatment #Transparency #PSR #UKBusinesses #NewRegulations #BetterDeals #SupportSmallBusinesses

Benefits of Chip and PIN Machines for your Business

Whether you operate an online business or have a traditional brick-and-mortar store, it's undeniable that the Chip and PIN system plays a crucial role in ensuring the safety of your business and your customers during transactions.

Gone are the days when businesses had to rely on bulky machines to process payments, which often deterred small businesses and temporary retailers from accepting card payments. Nowadays, it's rare to find a company that doesn't utilize a Chip and PIN device to handle their card transactions.

But what exactly is a Chip and PIN machine, and how does it operate? Let's delve into this groundbreaking technology and explore the advantages it brings to your business.

Chip and PIN machines are specialised card payment devices that enable customers to conveniently make in-store transactions by using a combination of their credit or debit card and their unique Personal Identification Number (PIN). These machines provide customers with the flexibility to pay for goods and services using their cards, resulting in enhanced accessibility and security. In contrast, the older payment method required physically swiping cards through a machine and signing a receipt.

The year 2004 marked a significant milestone with the introduction of Chip and PIN debit and credit cards, equipped with microchips for storing card data. However, it wasn't until 2006 that it became mandatory for all payment cards in Britain to incorporate Chip and PIN technology. The impact of this shift was profound, as evidenced by a staggering £81.9 million reduction in annual counterfeit card fraud losses between 2004 and 2014, underscoring the positive influence of Chip and PIN implementation.

By embracing Chip and PIN technology, businesses of all sizes can create a safer payment environment and foster greater customer confidence. The convenience and security offered by this system have undoubtedly revolutionized the way transactions are conducted, providing a win-win situation for both businesses and customers alike

Depending on the nature of your business, there are three primary types of card machines that can benefit you:

1. Countertop: The countertop card machine is the most commonly used type, typically found in retail establishments adjacent to the cash register. These devices require a physical connection to a power outlet and either a broadband or phone line. It's important to note that they restrict you to serving customers from a specific location, so make sure you have clear signage indicating the payment area. Countertop machines are well-suited for local shops, hair and beauty salons, and independent retailers.
2. Portable: Portable card machines are commonly used in restaurants, where the staff brings the machine directly to your table when you request the bill. These machines consist of two parts: a chip and PIN card reader and a base. The card reader connects to the base using Bluetooth technology, enabling payments within a range of approximately 50 meters. This flexibility allows you to process payments at the bar, on the shop floor, or at the customer's table. If you manage a hospitality business such as a pub, café, or restaurant, a portable card machine is an ideal solution.
3. Mobile: For businesses that are constantly on the move, a mobile card machine is an excellent choice. These machines operate without the need for cables or wires. Instead, they utilize 3G connectivity to establish a connection with the strongest mobile network available (such as Vodafone, O2, or EE). As a result, you can accept card payments anywhere in the UK as long as you have a signal. If you operate a mobile business, such as a caterer, courier, taxi service, or mobile beautician, a mobile card machine provides a convenient way to accept payments.

By selecting the card machine that aligns with your business needs, you can streamline your payment processes and enhance customer satisfaction

Chip and PIN technology offers a wide range of benefits to businesses, including:

1. Increased security: Chip and PIN machines provide enhanced security for both businesses and customers. The use of encrypted chips and unique PINs makes it difficult for fraudsters to clone cards, reducing the risk of card-related fraud.
2. Faster transactions: Chip and PIN payments are quicker and more convenient compared to traditional payment methods. Customers can easily complete transactions by inserting their card and entering their PIN or by using contactless payments or mobile wallets. This results in reduced wait times and improved customer satisfaction.
3. Increased customer confidence: The secure nature of Chip and PIN transactions helps build trust and confidence among customers. Businesses that prioritize security are more likely to attract and retain customers, leading to improved customer loyalty and reputation.

Regarding the security of Chip and PIN machines, while no system is entirely immune to hacking, Chip and PIN machines are generally considered secure. However, it is crucial for businesses to implement appropriate security measures to protect their machines and customers from potential risks.

The cost of a Chip and PIN machine can vary depending on factors such as the card provider chosen. At Originate, we strive to make it easy for businesses to get started. Our team will work with you to understand your business needs and create a personalized pricing package. Additionally, our card machines come with contactless payment capabilities, Apple Pay, Android Pay (Google Pay), and Samsung Pay already set up. Originate does not charge any joining fees, and there are no exit fees if you choose to end your contract.

By leveraging Chip and PIN technology and partnering with a reliable provider like Originate, businesses can enjoy the benefits of secure transactions, faster payments, and increased customer confidence

If you're interested in learning more about the payment solutions offered by Originate or discussing your options further, I recommend reaching out to our helpful team. They can provide detailed information about our card machines for small businesses and help you determine the best solution for your specific needs.

You can contact our team directly to get more information and address any inquiries you may have. Additionally, you can explore our blog, where you'll find valuable insights and information about our technology and other related topics.

We are committed to making payments more manageable for businesses like yours, so don't hesitate to get in touch with us to explore the possibilities.