Payment Acceptance

Aughton Village Hall’s bar operation only accepts cash payments for transactions, except for pre-paid tabs which can be paid in cheque or via bank transfer. Accepting cheques and bank transfers requires checks to ensure the transaction was successful.

Cash Payments

We currently accept cash payments for the majority of bar transactions. Cash gross turnover is between £200 - £1000 per function. Accepting cash payments incurs the risk of being presented with counterfeit notes not detected, calculation errors and the cash liability of holding sums of money on premise. When accepting cash the business incurs a cost to process a cash transaction, provide change to customers and managing cash control. The business can incur a 1% cash variation (up or down).

Cost of Change: To provide 100 guests with £5 in loose change, the business would need to dispense £500 of change. Based upon recent functions, the business consumes £x in change, which must be sourced from the bank.

Card Payments

Customers are often asking if we can accept card payments at the bar, currently we are forced to decline and advise them to use a cash machine. This risk loosing business, from customers.

Accepting card payments incurs 3rd party costs, and introduces complexity to the payment process, but offers a better service to customers.


Micropayment providers offer a competitive solution to small buisnesses to accept card payments. To take card payments you only need a purchase a card reader. The costs associated with micro-payments is the initial setup cost, followed by only a cost per transaction with no contract fees. Card readers accept chip and pin payments, and contactless. Micropayments require a valid mobile device and internet connection

Provider Setup Cost Transaction Cost Contactless  
SumUp £29 (+vat) 1.69% yes
iZettle £29 (+vat) 1.75% yes
PayPal £35 2.75% yes  
  • Card costs cannot be passes to the consumer, this would violate the terms and conditions of use
  • Minimum card fees cannot be set


  • Base turnover: £1000 - Higher return rate of functions
  • Possible card transations: 20%
  • Increased sales: 10%
  • Core card payments: £200
  • Cost of core card transations: £3.38
  • Increased sales: £100
  • Increased profit: £50 - 85p = £49.15


Card payments are entered into a smart phone or tablet, and made via the card reader. When the payment is made via the POS system the payment method of ‘card’ is selected, total card payments from both systems can be collated to ensure they agree.


Aughton Village Hall could easily adopt micro-cardpayment solutions for the bar at minimal cost to the business. Offering card payments offers customers a better and easier service, which they have requested. Any card payments can easily be traced using the POS system to ensure accountability. Estimations of uptake and increased sales would show a healthy increase in profit.