Izettle Could Damage Your Wealth, as it very nearly did for me last weekend. Firstly if you do not know what Izettle is the click this link to read more. It is basically a really simple cost effective solution to taking credit card payments anywhere by using your smart phone or tablet.
My wife and I run a small antique silver business where we sell antique silver on line and at various antique fairs in Devon. At these fairs it is now almost impossible to sell anything unless you have a chip and pin credit card machine. I did a lot of research and found most merchant service providers locked you into a monthly subscription often for as much as 36 months as well as charging a percentage of each transaction.
This sort of deal was too costly for me as I would only use the machine on one day a month and therefore I was paying for rental charges when the machine is not in use. Then I discovered Izettle. This simple device links by Bluetooth to your smart phone or tablet and following a one off purchase fee of £99 for the card reader the only costs I incur are a 2.75% charge per transaction.
I have been using this machine for several fairs now without a hitch that is until last weekend. As we were nearing time to pack up a customer purchased a caddy spoon for £90. I processed the transaction on Izettle. I have found that customers do not like to wait for you to enter the email address for a receipt so I always give a hard copy written receipt for each purchase.
The next day was a Sunday and working at home catching up with the paper work from the sales I went into my Izettle Dashboard to check the progress of the payments. I was shocked to see the caddy spoon purchase had taken not £90 but £900.07 from the customers account!!
The next thing I did was try to contact Izettle. I found they offer NO Telephone Support. The only contact was through email Monday to Fridays 9 – 5 pm.
Now I did start to panic. I checked my copy of the invoice and then tried to find the customers contact phone number through BT – alas they were not listed.
I was really concerned, what if this deduction pushed the customer into overdraft? What if they incurred charges? What about the increase in fees I would have to pay on the amount from £90 to £900.07.
I emailed Izettle support and had to just wait until Monday morning.
Monday came and I did get a reasonably quick reply from Izettle.
Izettle could only suggest I wait until the customer contacted me.
I was very unhappy with this so went back to trying to find a way to contact my customer. I eventually found a reference to the husband on a business website through searching Google, got lucky with a mobile number and then rang him. I was very lucky. Both he and his wife were understanding. His wife had sufficient funds in her account to cover the £900.07 transaction without incurring fees. I was then able to do a bank transfer back to her account that same day rectifying the mistake.
I have entered into numerous emails with Izettle who maintain the system is not at fault. They have kindly given me a credit on their fees for the overcharge amount against a future transaction. It still nags at the back of my mind though was it my error? If it was £900 exact I could believe it was my mistake by tapping an extra nought. But where does the 0.07 come from? Accepting I am to blame I do note that some competitors have a screen prompt to remind users to check the amount as well as offering telephone support at weekends!
Am I still happy to recommend Izettle? Well the answer is yes, provided you and I learn from the points above and double check the charge amount each time, that way Izettle will not damage my wealth.
Please see the update from Aaron below bringing this old post right up to date – also see the latest image of the card reader from the Izettle website