You authorise and instruct us to receive, hold and disburse funds in accordance with these Payment Terms and Conditions on your behalf. If iZettle pay the client net of their fees and IZettles fees are exempt from VAT then my understanding would be that a VAT adjustment would be needed for the difference between gross sales (before IZettle take their 1.75%) and the net amount IZettle pay the client. 10 . - Your client then pays x in fees (VAT position on fee TDB here). You agree that we will determine the extent of such guarantees or other security. Your Output VAT on a 100 sale at standard rate is 20 - end of! PayPal (Europe) S. r.l. Once the funds hit your bank account (after charges) treat those as a transfer from the iZettle account. I note there is no VAT on iZettle charges and others who offer the same service. The interchange fee and scheme fee may vary depending on which acquirer we use. Terminal pricing and fees subject to change. If we do process such refunds and it results in a negative balance on your PayPal Account, you agree to pay all funds owed to us immediately on demand and any applicable process described in the PayPal User Agreement may be enacted. Download Zettle's POS app Pricing breaks down as follows: Cost of Zettle Reader: Currently 29 + VAT (Normally 59 + VAT) Transaction fees: Flat 1.75% Setup fee: 0 A step by step guide to starting your own practice. Your Output VAT on a 100 sale at standard rate is 20 - end of! Is this because it is a reverse charge supply so if a UK company were looking at offering a similar service it would be fully VATable? This section 16 applies only if you are a Zettle-only Merchant or Connected Merchant as described in section 1 above. This is due to a change in the . Your use of the Zettle Gift Card Service may mean that you are: a) issuing electronic money in the United Kingdom, which may require you to be authorised by, or registered with, the Financial Conduct Authority (FCA) as an electronic money institution (EMI) pursuant to the Electronic Money Regulations 2011 (EMRs); and/or b) providing payment services in the UK, which may require you to be authorised by, or registered with, the FCA as an EMI pursuant to the EMRs, with permission to carry out payment services; or as a payment institution (PI) pursuant to the Payment Services 2017 (PSRs). Price includes a USB cable for charging. Any agreement regarding custom rates are subject to a specific agreement between the parties. We reserve the right to amend our Fees at any time in accordance with section 23 of the General Terms and Conditions. Filing options for small companies up for change. I am 99% certain Zettle (Paypal) transaction fees are exempt from VAT. You can find the agreements here. For any payment transaction we determine may result in a Chargeback, we have the right to withhold the potential amount of the Chargeback in a reserve. This is troublesome because any receipt that is produced by iZettle is simply not eligible and it makes accounting troublesome when paired with transactions with correct VAT. We will only attempt to correct transactions that you process incorrectly if you notify us of such error without undue delay and no later than sixty days of when the error first appeared on your electronic transaction history. Subject to your compliance with these Payment Terms and Conditions, we consider that your use of the Zettle Gift Card Service falls within the LNE, i.e. You are not permitted to process Manual Card Entry transactions when your customers Card is present. You have a sale of 100 + VAT and a 'purchase' (for want of a better word) of 1 + VAT. The price of hardware depends on what you need. You must provide customers with a receipt if they request one. Such change can be made unilaterally by us, the Card Scheme Rules administrators, or the Third Party Payment Providers without notice but we will try to inform you in advance. I'm still confused by the rules with regard to VAT on IZettle fees. You acknowledge that we must fulfil the obligations related to such listing and reporting, and you waive and agree to hold us harmless from all claims and liabilities you may have as a result of such listing and reporting. Although, not always lower compared to many UK merchant account fees. The fee you pay to us is not affected by any of these fees. Our Acquirers and the Card Schemes may from time to time impose certain limits on Merchants annual Card transaction volume through the use of the Payment Service. A list of the Acquirers we co-operate with for the provisioning of the Payment Service from time to time can be found here. All Zettle hardware is a one-off purchase with no recurring costs and our POS app is free to download, so you only pay for the transactions you process. The Zettle Gift Card Service does not include the supply of physical cards or other value certificates. Now, let's deposit the payments including the fees. Terms and Conditions for Zettle Pro. This fee is the only fee for transactions that you pay to Zettle. There is no lock-in contract, so you can cancel any time at no extra cost. (R.C.S. Zettle may also make other charges that are not exempt. By accepting these Payment Terms and Conditions, you agree that you will not use the Payment Service to accept payments in connection with the following businesses or business activities without our express written approval, which approval we may withhold or revoke in our sole discretion where we find this to pose a risk to our business and/or reputation: a) private healthcare services, b) gambling and betting services (irrespective of if such gambling and betting services are provided in accordance with all applicable laws and authorised by all applicable regulatory authorities), c) financial services (irrespective of if such financial services are provided in accordance with all applicable laws and authorised by all applicable regulatory authorities), d) gift cards (other than as set out in section 3 and section 28 as well as in accordance with our General Terms and Conditions), e) services involving the organisation of planned public or social events, such as sale of tickets, or f) transportation and travelling. You may only use the Invoicing Service in order to issue, manage and administer invoices in accordance with these Payment Terms and Conditions. The fear of god roaring at you does actually stand you one in good stead, Is VAT charged on IZettle fees confused by VAT notice and HMRC v NEC ruling, Discover the Accounting Excellence Awards, Explore our AccountingWEB Live Shows and Episodes, Sign up to watch the Accounting Excellence Talks, Preparing clients for postponed VAT accounting. A payment transaction using another payment method will be deemed completed when we have received the funds on our client funds account (the Client Account). When a payment transaction is made, we will update the transaction information in your Zettle Account confirming that the transaction has taken place and setting out the details of the transaction as further described in section 15. Terminal Printer & Dock and Terminal with barcode scanner are sold separately. However IZettle pay the client 120 less 1.75% ie 117.90. Further, you agree to inform your customers about the expiration date of the issued gift card as set out on the receipt you are liable to provide in accordance with section 11. Funds from a payment transaction credited to your Zettle Account will not be paid out to your Designated Account until the transaction is deemed completed. Payout of funds to your Designated Account is subject to certain limits as further specified on our Website. When your customer has paid the invoice online by Card or by using any other online payment method made available by us in your jurisdiction in a correct manner, your customer shall be deemed to have fulfilled its payment obligation to you in relation to such invoice. Through the Zettle Account settings, you may select and instruct us to maintain funds on your Zettle Account specifically for funding refunds or to expedite execution of refunds. You must submit all requests for refunds and adjustments for returns of your products or services through the Payment Service in accordance with these Payment Terms and Conditions and the applicable Card Scheme Rules. HMRC guidance seems to state it is not exempt but I havent ever seen a credit card fee from someone like iZettle subject to VAT? To be eligible to process Manual Card Entry transactions, you must be a Fully Merged Merchant and have successfully completed a Card transaction through a Zettle Reader. How the refund is processed through the Payment Service depends on which group of Merchants you belong to in accordance with section 1 above: If you are a Zettle-only Merchant or a Connected Merchant, for approved refunds, we will deduct the refund amount (including any applicable fees) from funds owed to you from the processing of other transactions, or funds credited to your Zettle Account. transactions where both the Card and the customer are present at the time of the transaction) by inserting the Card into the Zettle Reader or swiping the Card and obtaining the customers PIN or obtaining the customers signature. You may use the Payment Service to process card-present transactions (i.e. - The current account bank feed will be allocated as a transfer ex Zettle control, The beauty of being taught never (ever, or else!) If you usually make over 10,000 a month, iZettle can go lower than 1.75%, but the percentage will be customised to your situation so we can only make assumptions about those fees. The App will prompt you as to what verification is necessary, based on a customers Card. So VAT payable would be understated by 35p so an adjustment is needed, Thats my understanding of it but happy to be advised if this is not correct. To enable the use of Manual Card Entry, you must follow the instructions and comply with any requirements, in each case as determined by us, an Acquirer, or a Card Scheme. Pricing & Fees iZettle fees are one of the lowest around compared with similar payment solutions. Accepting payments with the Zettle Go app only takes a few kilobytes of data. The Payment Service is a payment service exempt from VAT. For more information, please visit our Website. You undertake to inform your customers of the possibility to pay by Card by displaying signage for all Card options provided by us as possible payment methods in your physical store or online. The download link will appear above the breakdown of your activity for the month. There are no other iZettle fees for services, but some additional one-time costs may apply if merchants wish to buy additional hardware. If an authorised payment transaction is not executed properly or not executed at all, we will, upon your request, use reasonable endeavours to trace the transaction and attempt to rectify any errors that you or we discover and notify you of the result. It is your responsibility to inform your customer that you will use the App to send them a receipt via email or SMS before doing so. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authoritys website. Others (I know) are not. The transaction fee is set at a flat rate of 1.75% for all card reader transactions, and there are no monthly fees or hidden costs. The Payment Service will enable you to accept and process payments from your customers (i) by Card or their smartphone, tablet or other compatible mobile device enabling them to take contactless smartphone/device transactions through the use of the App installed a) on your smartphone, tablet or other compatible mobile device connected to your Zettle Reader, b) on a compatible mobile device enabling you to take contactless payments directly in the App (the Tap on Phone Service), or c) directly on a Zettle Reader enabling you to take contactless payments, (ii) when your customers pay an invoice online using a Card or any other online payment method made available by us in your jurisdiction (the Invoicing Service), (iii) when your customers pay for your products and/or services through a payment link provided to your customer by email, text message or similar communication tool, and (iv) by redeeming gift cards issued by you using our gift card service (the Zettle Gift Card Service). et Cie, S.C.A. (R.C.S. As for transaction fees, here's what iZettle charges: Card-Present Transactions: 1.75% Invoiced Transactions: 2.5% Payment Link Transactions: 2.5% Keyed-In Transactions: 3.4% + 20p QR Code PayPal Payments: 1.75% The iZettle Reader retails for 59, excluding VAT, while the Zettle Terminal sells for 149 (excluding VAT). We reserve the right to suspend your access to and use of the Payment Service and to terminate and close your Zettle Account if you fail to allow us, or a third party designated by us, to conduct such audit upon our request. . The PayPal Zettle app carries no monthly fees. If the error results in your receipt of more than the amount to which you were entitled, we will debit the extra funds from your Zettle Account or PayPal Account. Youll be charged a fixed transaction fee, regardless of which card you process with your Zettle Reader or Terminal. You may not redeem a previously issued gift card with another gift card. Choose what suits you best turn your smartphone or tablet into a POS with the Zettle Reader, add accessories and docks, or choose an all-in-one solution like the Zettle Terminal. On a sale of 1,000+20% VAT: - your client receives payment for the full 1,200. You are responsible for, and warrant, to collect, store and process Customer Information in accordance with all applicable laws, rules and regulations and your privacy policy, which includes having the right, and having ensured to have an appropriate lawful basis in place, to be able to collect, store and process the Customer Information obtained through the use of the Invoicing Service. The transaction fee is set at a flat rate of 1.75% for all card reader transactions, and there are no monthly fees or hidden costs. You are also responsible to contact us if you suspect that your Zettle Reader has been tampered with or stolen. *Youll find the full list of transaction fees for all accepted payment methods on our pricing page. The Payment Service is, in addition to these Payment Terms and Conditions and applicable laws, rules or regulations, governed by the requirements and guidelines established by our Acquirers as well as the requirements and guidelines (together, the Card Scheme Rules) established by Visa Europe Limited, MasterCard Europe S.A., American Express Limited and other applicable card schemes (together, the Card Schemes). As a Fully Merged Merchant you authorise and instruct us to initiate payment of all funds credited to your Zettle Account to your PayPal Account. We will only process Card transactions that have been authorised by the applicable Card Scheme or Card issuer, as the case may be. In addition to what is set out in section 15 of the General Terms and Conditions, you are responsible for all Chargebacks, reversals, refunds, fees, fines, penalties and other liabilities incurred by a third party or us caused by your access to and use of the Payment Service and/or arising from any breach by you of any provision of these Payment Terms and Conditions. Our bank account shows 255.45 received. Your continuing use of such payment method constitutes your consent and agreement to such additions, deletions or amendments. Fees will be assessed at the time a transaction is processed and will be deducted from the funds received by us and credited to your Zettle Account or PayPal Account. You agree to reimburse such third party or us for any and all such liability. You agree that we have the right, in our sole discretion, to determine whether or not you are eligible for access to and use of the Payment Service. 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