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Comparing SA's Popular Affordable Card Machines
- Floyd Mndebele
- May 29
- 4 min read
In the fast-paced world of small and startup businesses, managing your finances efficiently is key to sustainable growth. As you scale up, the ability to accept card payments seamlessly becomes non-negotiable. But with a growing number of affordable card machine options in South Africa, choosing the right one can feel overwhelming.
This deep dive cuts through the jargon to compare four of the most popular entry-level card machines for small businesses in South Africa: Capitec Bank, Yoco, iKhokha, and Vodacom.
Before we dive into the specifics, here are a few key assumptions and statements to keep in mind:
Original Prices Only: We've considered only the original, non-sale prices for the card machines as of the compilation of this post.
No Receipt Printers: This comparison specifically excludes machines with built-in receipt printers, focusing on the more compact, entry-level options.
Tap-to-Pay Standard: All machines compared support tap-to-pay functionality, a modern convenience for both you and your customers.
Cardless Transactions Excluded: Our focus is purely on physical card payments; cardless transaction options (like QR code payments where no physical card machine is involved) are not part of this comparison.
No Cheaper Transaction Options: While some providers offer alternative, cheaper transaction methods, these are reserved for a separate, more in-depth comparison.
Under R100,000 Monthly Turnover: All transaction fee comparisons are based on the assumption of a monthly turnover consistently R100,000 or less over three calendar months, as this often influences tiered pricing.
Let's break down the offerings from each provider to help you make an informed decision for your growing business.
Please note that the order below does not suggest superiority or recommendation. It was simply the most organized way to present the information. ;)
As one of South Africa's biggest and fastest growing banks, Capitec has made significant strides in the business banking space, offering competitive rates for it clients. Their selling point is giving merchants a smooth intergration between handling transactions and access to banking services. For the Capitec Pro card machine:
Upfront Cost: R699
Touchscreen: Yes
Transaction Fee (ex. VAT): 1.85%
0.85% after 3 consecutive months of turnover between R50k - R100k
OR 1.85% commission fee for lower rates as turnover grows
Monthly Fee: R50 (in. VAT) for business banking account, which is required
Payout/Settlement Time: Next-day settlements (including weekends & public holidays)
Payout/Settlement Fee: Free to a Capitec Business Bank Account
R0.50 per transaction if paid out to any other South African bank account.
Yoco is a popular choice for small businesses due to its user-friendly approach and various machine options. They have a wide range of payment solutions tailored for startups ready to take off. For now, let's look at their Neo Touch Card Machine:
Upfront Cost: R999
Touchscreen: Yes
Transaction Fee (ex. VAT): 2.70%-2.95%
0% for your first R5000 in sales OR your first 3 months (whichever comes first.)
Monthly Fee: R45 Connectivity Fee
Payout/Settlement Time: 1-2 business days
Instant payout option available
Payout/Settlement Fee: None
iKhokha is another strong contender, known for its dynamic rates that decrease as your transaction volume grows. My best description of their service offering is adaptive and direct - empowering entrepreneurs with exactly what they need to handle payments for their businesses. Consider the iK Flyer Lite:
Upfront Cost: R999
Touchscreen: Yes
Transaction Fee (ex. VAT): 2.50%-2.75%
Fee decreases with increase in monthly sales
Monthly Fee: None
Optional R75 for Dual SIM with unlimited data
Payout/Settlement Time: 1-3 business days
Next day settlement for Absa and FNB bank accounts
Payout/Settlement Fee: R2.50 per settlement
This fee is only applicable when you transact and money is settled
Being one of South Africa's biggest telecommunication companies, Vodacom - through their VodaPay platform - leverages its extensive mobile network and customer base to offer a diverse suite of financial services and digital lifestyle solutions. In this context, they offer a compact card machine with a focus on simple pricing. Here's their VodaPay Kwika offering:
Upfront Cost: R799
Touchscreen: No
Transaction Fee (ex. VAT): 2.00%-3.00%
Fee decreases with increase in monthly sales
Monthly Fee: None
Payout/Settlement Time: Instant payment processing with immediate fund reflection
Confirm with service provider for details.
Payout/Settlement Fee: Not explicitly stated but confirm with service provider for details.
Making Your Choice
When selecting the best card machine for your business, consider these points:
a. Typical Transaction Mix
If you primarily process debit card transactions, Capitec's lower debit card fees might be highly attractive. If you have a good mix or more credit card transactions, compare all rates carefully.
b. Monthly Turnover Consistency
iKhokha and Yoco both offer tiered rates that become more favourable as your volume increases. If you anticipate rapid growth in transactions, their decreasing rates could save you money in the long run. Capitec also offers tiered rates for higher turnover.
c. Upfront Investment vs. Ongoing Costs
Capitec and VodaPay generally have lower upfront machine costs, while Yoco and iKhokha's machines are slightly higher but still very competitive. Consider the monthly fees (or lack thereof) and daily/per-settlement fees to understand your total cost of ownership.
d. Settlement Speed
If immediate access to funds is critical for your cash flow, VodaPay's instant settlement stands out. Yoco's Instant Payout option is also a strong contender.
e. Simplicity and Support
All these providers aim for ease of use. Consider their app interfaces, customer support channels, and any additional features they offer (like business tracking or value-added services) that could benefit your operations.
By carefully evaluating these factors against your business's unique needs and projected growth, you can confidently choose the card machine that will empower your sales and help your business thrive. If you are still confused about which option to go for, feel free to get in touch with us.
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