SumUp is a payment service provider known for its popular mobile point of sale systems and virtual payment processing services. SumUp is a very popular PSP in Europe that recently expanded its services in the US. Merchants can receive in-person payments using their application and mobile card reader. The features of their application closely resemble its rivals, Square and PayPal Here. Sum up is an excellent option for merchants with a low sales volume.
SumUp has lower fees than its rival Square in small tickets. Also, their pocket-sized card reader offers more features than the Square mobile card reader. These factors result in SumUp having an edge in the market and more satisfied clients. While SumUp was very successful in international markets, the provider is having some trouble adjusting to the climate in the US. The reason for this can be traced easily. While SumUp offers basic features that a business needs for card-based payments, the feature set provided in the UK is far more diverse and expansive than in the US.
SumUp offers a flat-rate pricing model, but you can find the same with several other payment processors in the market too. The pricing of their services varies based on the region. For in-person payments, sum up charges 2.75% of the transaction. These prices are competitive compared to Square (2.6% + $0.10). Square changed its pricing from a complete 2.75% to the latter, putting it at a disadvantage with small-ticket merchants. The funds will be deposited in the merchant’s account within one or two days of the transaction. SumUp does not have an instant deposit option for funds. The timeframe is standard amongst countless providers in the market.
This pricing model becomes especially unfeasible for small-ticket merchants with a high sales volume. But unless your business has a high volume of sales, you would not save much compared to Square with this pricing model. And for bigger tickets, the pricing might even be costlier than Square. But it is a good option for small-ticket merchants as it has no monthly minimums, set up fees, cancellation fees or ETFs.
SumUp has a fee for chargebacks regardless of which party is favored in it. While they have not openly disclosed the fees for chargebacks, in a blog post, they have revealed it to be $10. But merchants do not have to deal with chargebacks regularly in card-present or in-person transactions. Chargebacks usually occur in online payments.
SumUp offers card readers in the name of hardware for business transactions. They offer three different packages; SumUp Plus, SumUp Plus bundle, SumUp Pro.
The SumUp Plus costs $19. You can process magstripe, chip and NFC-based transactions for that price. The SumUp Plus Bundle includes a charging dock for the device to be mounted. The bundle costs $39. Finally, the SumUp Pro costs $59. The SumUp Pro is a standalone terminal while you need a smartphone with the SumUp Plus. The SumUp Pro comes with free mobile data so that you can take payments even without Wi-Fi.
The main offerings of SumUp are the SumUp app and Virtual terminal. You get all the basic POS features you need for your business from the SumUp application. Features offered are; an item library, cash recording, Email and SMS receipts and a lot more. Merchants can send their customers payment links to pay using their phone or computer. Some also allow merchants to give out virtual gift cards through links on social media, websites or directly to customers.
But if you have ever researched other mobile POS systems, you will find that many options are missing as well. Better featured mPOS systems also include discounts, eCommerce capabilities and inventory count, amongst other significant features.
SumUp offers a Virtual Terminal to its clients. Through it, merchants can process card-not-present transactions using only their computers. This allows merchants to receive payments even when they do not have a card reader. However, SumUp does not offer this service to all merchants, and most merchants never get approved. Merchants can send the invoices and receipts for the payments using email or print them in person. SumUp charges a fee for processing emailed invoices, but they do not charge anything for invoices paid in cash or via check.
SumUp is struggling in the US, and there are several reasons for that. Below are some of the significant problems that the provider has, based on both international and US merchants;
There are more than a hundred complaints against the processor on the internet, and the total is rising. Complaints about delayed or withheld payments are increasing gradually. This indicates that the provider is facing trouble expanding in the US climate.
Several complaints are about merchants trying to cancel their accounts as SumUp froze them. The accounts usually are frozen because of their business model. As SumUp is a smaller processor, it cannot deal with high-risk businesses. So, payments often get withheld to reassess the business’s risk level. This can be a nuisance for merchants as withheld payments often dent the operations of a business.
The complaints about customer support are very diverse. Customers complain about the inability to find their customer support numbers. In addition, others claim that the customer support was utterly unhelpful. A few users complained about a prolonged delay in the process when they applied for the virtual terminal or mobile payment options.
While this is a relatively less common complaint, merchants have reported their hardware to falter and stop working. While SumUp offers a one-year warranty for their devices, it is a frustrating scenario for merchants. Even though SumUp replaces the terminals within the warranty, merchants should keep in mind that trouble with the equipment is possible.
SumUp offers competitive rates and easy to use terminals. While there are complaints about their customer support, it isn’t the worst in the market. It is an adequate payment processor in the modern payment industry. But it is not suitable for large scale businesses that rely heavily on eCommerce and in-store business.
It is hard to recommend SumUp considering the increasing number of complaints about the processor and the nature of the protests. Incompetent customer support can be the final straw to losing a customer. It’s best to research and assess all the possible options before committing to a payment processor.