HomeiKhokha Card Machine or One from the Bank: Which is Better?

iKhokha Card Machine or One from the Bank: Which is Better?

Card machines are essential in today's world! Do you want to boost your sales with a rent-free, low transaction rate card machine or one from the bank?

iKhokha Card Machine or One from the Bank: Which is Better?

Listen, we can’t tell you how to run your business. And we never will. But far be it that we don’t try and point you in the direction of reliable, cheap, easy software to make business easier.

Because that’s what business should be: easier. It’s not a walk in the park, but it doesn’t have to be a walk through a landmine stretch cluttered with red-tape, high rental fees and profit-killing interest rates.

Card machines are all-important in today's steadily cashless world. They help you to join forces with your consumer and mitigate any unnecessary risk. They help you align with buyers. Additionally, day-to-day operations move far faster when you’re operating with a swipe or a tap-and-go.

Finding the Right Fit

Word on the street is that you may be looking for a new point of sales system to add to your business repertoire and if you’re in the market for some good advice, we’re in the market to give it to you. Free of charge, naturally.

Choosing the right card machine for your business can be daunting: there are several options and offers and you know that once you’ve chosen, you’ll have to stick with that machine for the foreseeable future. It’s a lot of pressure, but it doesn’t have to be.

Today you’re going to find out more about the differences between card machines from a traditional financial institution (the bank) and card machines from an independent FinTech company (like us, iKhokha).

Afterwards, you’ll have a clearer idea of which one will be best suited to your business, and you can take it from there.

Card Machines for Small Businesses

Why are card machines essential for small businesses? Let’s tackle that first.

For starters, your customers are over handling cash. On their side, there are withdrawal fees, the risk of crime and the inconvenience of carrying cash wherever they go. It would be silly to ask your customer to stick with outdated cash transactions to pay for your particular product or service.

South Africa, despite some misconceptions, has a notably high credit and debit card penetration. Fewer people are being paid in cash and it makes sense that they wouldn’t be paying with cash as much. As a business owner, you know that you need to meet your customers where they’re at, and card machines let you do just that.

Small businesses rely on making as many sales as possible to stay afloat, and card machines play a role in getting you there. Being able to accept cards will increase your sales. So, what are you waiting for?

Card Machines from the Bank

If you’ve been doing your research, you may have come across getting your card machine from your bank.

It’s a common plan of action and can work well for some businesses, but we can’t ignore the drawbacks. You may have even noticed some of these issues on your own and that’s why you’ve been holding out on getting a card machine at all.

High Transaction Fees

Because card machines have become a business essential, some banks charge high transaction fees for each time a credit or debit card is swiped. Now, you’ll be hard-pressed to find a card machine that doesn’t include transaction fees (actually, you won’t be able to). Some banks can charge up to 3.5% per transaction, and that rate usually stays the same regardless of how many transactions you facilitate.

It’s difficult to get excited about your new card machine when a whopping amount of your money is going straight to the bank.

Limited Reporting

If you’re going to invest in equipment for your business, you want it to make your life easier, right? Right. When it comes to card machines from the bank, what you see is usually what you get. Because bank card machines aren’t always mobile or app-based, you won’t be able to track your sales, transactions and profit directly.

These are the parts of your business you need to keep tabs on. It takes time and effort to compile this kind of data on your own, never mind the capacity for human error.

Rental Fees

How most banks operate is that they will rent card machines to businesses in exchange for a monthly fee. You need to take these into account if you’re looking at a bank to get a card machine. The average rental fee for a bank card machine is R400. Let’s say you use your card machine for three years, that’s R14400 that goes into renting your card machine.

We don’t know about you, but that’s good money that could be used elsewhere within your business.

Tricky Qualification Process

If you’re a new business just starting, it could be a cumbersome process to get a card machine from the bank. You need to prove your volume of transactions and how much revenue you’re bringing it. This is tricky if you’re a new business that needs a card machine to bring those transactions in!

We aren’t saying a card machine from your bank isn’t a reliable option and if you can afford the rental fees and transaction costs, power to you. But what if there was another avenue that saved you money, handled your reporting and travelled with you wherever you went? Well, there is.

Card Machines with iKhokha

The one thing we can say about ourselves is this: we are not a bank, and we never will be. We run things differently and aim to empower all South Africans to seek out financial stability. We’d like to think this is evident through our card machines, and how they differ from what else is on the market. Let’s run through how card machines work with iKhokha.

Go Mobile

Mobile card machines are revolutionising sales. They’re as easy to use as your smartphone is, making them the ideal tool for budding entrepreneurs.

It’s a simple concept: you can manage your business sales directly from your phone. You connect your iKhokha card machine to your phone using Bluetooth, transforming your mobile into a robust point of sales system. We also offer wireless connections that let you track transactions in real-time.

Business owners are protective over their businesses and it is paramount to stay connected, wherever you go. With a mobile card machine, you’re sorted on that front. Mobile card machines help you stay agile.

If you want to check out our mobile card machine, the iKhokha Mover Pro, click here.

Own it, Don’t Rent It

The once-off price of an iKhokha card machine is considerably lower than that of a traditional card machine from the bank. We think that business owners should be able to own their equipment from the get-go.

If you think an instalment package would be better for you, that’s fine. We offer a weekly payment plan over 16 weeks – in less than three months, you’ll be an official card machine owner. You can pay it back, interest-free.

App-based Reporting

The iKhokha App lets you manage your business from your mobile. Each transaction that takes place will be synced with the app. Take one tricky step out of your cash up process.

If you use the app, you’ll also have access to innovative features like iKash and iK Cash Advance.

You can read more about what an iK Cash Advance can do for your business here.

Save Money While You Make Money

If transaction rates are stopping you from going digital, this is for you.

Transaction fees are a given. However, we aim to maintain the lowest possible rate to include all business owners, regardless of how big or small the business is.

Take note: the more you earn, the lower your transaction fees. From where we stand, selling more shouldn’t mean paying more.

Chat Later

Now it’s up to you! If you’ve already made your decision (and we’re the ones you like), get in touch to get your brand-new card machine delivered straight to your door. We’re looking forward to hearing from you.

Looking for an iKhokha card machine? Shop our devices here.