Zeller vs Square: which is better for your small business?

Square has long been the superior pay-as-you-go EFTPOS provider in Australia, but newcomer Zeller now threatens to knock it off its peg.

As it turns out, each company has its strengths and weaknesses. Although similar types of small businesses would go for either, some would clearly benefit more from Square’s wider solutions while others prefer Zeller’s low fixed rate and online account.

Let’s contrast the main differences between Square and Zeller.

Pricing: same principles, different costs

Zeller and Square have an equal approach to pricing: neither requires a lock-in contract or monthly fees for the use of an EFTPOS terminal. Instead, you purchase a card terminal upfront so you own it outright. Then there’s only a pay-as-you-go fee per transaction. If you don’t accept a card transaction, there is no cost.

The transaction fee is 1.4% through Zeller, which is the lowest fixed rate for any pay-as-you-go EFTPOS provider with no monthly costs in Australia. Square charges a bit more: 1.6% through Square Reader or 1.6% through Square Terminal and Square Register.

Even Zeller Terminal is cheaper ($99 incl. GST) than Square Terminal ($329 incl. GST). However, Square Reader is one of the most affordable card readers in Australia for $65 incl. GST – a price point that Zeller does not match.

Zeller Terminal is also reliant on a SIM card you pay extra for, unless you’re just using its WiFi connection. Zeller sells its own for $15 monthly, but any SIM card will do.

There is no minimum monthly sales volume required on either platform, so you’re free to use it as much or little as you like without additional fees. Payouts and chargebacks are also free at both companies, but refunds cost the original transaction fee in Square’s case.

What about additional services apart from an EFTPOS reader? Zeller doesn’t yet have paid subscriptions of any sort, whereas Square has a plethora of extras:

• Square for Restaurants POS software: $0-$129 per month
• Square for Retail POS software: $0-$109 per month
• Square Appointments POS software: $0-$79 per month
• Square Online ecommerce software: $0-$85 per month
• Square Loyalty: $49-$149 per month
• Square Team Management: $0-$35 per month

Many Square features are also totally free, including a virtual terminal for keyed transactions, payment links, QR code ordering, a basic online store, the entry-level POS software, email invoices and gift cards. Zeller also has a free virtual terminal and email invoicing.

Fast transfers, online account and reporting

A big advantage for the unbanked: Zeller Terminal comes with an online transaction account linked to a physical Mastercard. This account receives payouts the morning after you accept a payment through the EFTPOS machine, bypassing the need for a conventional bank account.

Square does not yet have an online account with a card, but typically settles transactions the following day (weekends too) in your bank account. For an extra 1.5% fee, Square payouts can reach the bank account immediately. This a popular feature that Zeller doesn’t yet have an option for.

The Zeller account can transfer money to Australian bank accounts (e.g. to pay staff wages), and the card can be used online and in stores where Mastercard is accepted. However, you cannot withdraw cash at an ATM, nor can you receive bank transfers from other people.

POS systems

When it comes to point of sale (POS) systems, Square is the winner.

Zeller Terminal integrates with a selection of POS systems,  like Impos and Erply, so the EFTPOS machine can form part of a wider checkout with a cash drawer and other equipment. The card terminal itself has no advanced features beyond surcharging, tipping, refunding and a few other basic functions, so it has to connect with external POS software for extensive features.

Square Reader works together with an impressive, free POS app (Square Point of Sale), Square for Restaurants, Square for Retail and Square Appointments. The general Square Point of Sale app is suitable for any business, whereas the other apps are made for retail, hospitality or professional services respectively with free and paid plans available.

Square Terminal more or less has the Square Point of Sale app built in, boasting quite a few more features than Zeller Terminal. Then we have Square Register, the purpose-built tablet checkout register that can use most of the free and paid Square POS systems.

Square directly integrates with cash drawers, receipt printers, kitchen printers and barcode scanners, allowing you a full POS setup in whichever type of business you run.

All of these options are available without monthly fees, which has been handy during the pandemic when many businesses have needed to accept payments remotely.

Square is still the only one to integrate with ecommerce platforms like Wix, OpenCart, Magento and many more.

Verdict: geared towards different needs

If you’re just looking for a standalone EFTPOS machine that isn’t too expensive, has a low card rate and convenient payouts, Zeller Terminal is probably your best choice. The online account and Mastercard are especially handy to avoid the hassle and cost of setting up a business bank account.

Anything more complicated might require Square’s more versatile system. As well as the greater choice of EFTPOS readers, Square offers its own POS systems, business management tools, online payments and ecommerce builder. On top of this, it has many integrations for things like accounting, inventory management and marketing. Zeller also works with Xero, POS systems and a few ecommerce platforms, though Square currently has more integrations.

Zeller works well for mobile businesses or as a high-quality, freestanding payment terminal for simple transactions anywhere.

Square’s card machines can be linked to POS systems and checkout hardware, but are also used on the go with or without an app.

At the end of the day, there’s more choice with Square, but Zeller’s specialised solution is perfect many merchants.