Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What payment processors and card readers do members recommend for UK drinks businesses selling online and offline?
Members recommend several options depending on your transaction volume and setup needs: **Zettle** is a popular choice for card readers. It offers tiered transaction fees that decrease with volume, integrates easily with accounting platforms (Xero, QuickBooks, Sage), fast delivery, and quick payment settlement. The reporting is solid. **Square** is recommended for businesses with low monthly transaction volume and no monthly fees. Transaction fees are around 1.75%, with a card reader available for around £20. You can accept card payments over the phone, online, and via their free website option. **Stripe** works well linked to invoicing and accounting software. Standard UK online charge is 1.4% when using Shopify Payments. **Tyl from NatWest** has very low fees and has saved members money compared to previous solutions, though you may need a NatWest business account. **WorldPay** offers much lower transaction fees than Square but charges monthly fees, so it's better suited to higher-volume traders. Members also mention **SumUp** as a working option. For event/POS sales, Square is noted as particularly easy to set up quickly. One member mentioned using both Stripe and Square together works well.
What payment processing options and fees should we consider for ecommerce in the drinks industry?
Members report a range of payment processing solutions with varying fee structures depending on your platform and customer type. **Stripe** — Standard option charging 1.4% transaction fees. **Revolut Pay** — Members report it as a solid option with competitive rates. Key caveat: while consumer card transactions are charged at 1%, commercial/business cards incur a higher 2.8% fee. This is a significant consideration if your revenue mix includes B2B sales. Members noted this was a surprise discovery after initial sign-up. Revolut also offers cashback incentives (e.g. £20 on purchases) when using RevPay alongside a Revolut business account. **Shopify Payments** — If using Shopify as your platform, the fees vary by plan tier: Basic plan = 2%, Shopify = 1%, Advanced = 0.5%, Shopify Plus = 0.15%. Shopify adds additional third-party fees if you use payment providers other than Shopify Payments. **Caveat:** Members operating B2B models should carefully evaluate Revolut's commercial card fees (2.8%), as this significantly erodes the headline 1% consumer rate advantage if a substantial portion of your revenue comes from business customers rather than direct-to-consumer sales.
What are the competitive fee structures and terms offered by different invoice discounting providers?
Invoice discounting fees vary significantly by provider and can often be negotiated. Here's what members have encountered: **Fee structures typically comprise two components:** - A service fee (usually 0.2–0.25% of the available facility) - A discount margin over base rate (typically 1.75–2.25%) **Specific provider quotes members shared:** - **Lloyds** — 0.2% service fee + 2.25% discount over base rate (with potential to negotiate the service fee lower) - **NatWest** (historical, several years ago) — ~1.75% margin over base + 0.25% facility fee, though the facility fee was negotiated down to a fixed amount and the bad-debt protection element was removed when the member used a separate credit insurer - **Aldermore** — members have used this at scale (seven figures annually) and found the fees "not uncomfortable" relative to cashflow benefits, though one member noted a competing **Credit Agricole** quote at 50% less than Aldermore's pricing **Negotiation tactics:** - Service fees are negotiable; members have successfully argued for lower or fixed fees by demonstrating that the full facility isn't needed year-round (e.g., only at peak seasonal periods) - Bundled bad-debt protection can be expensive; consider using a separate credit insurer and removing that fee element - Fees are heavily dependent on business profile and turnover; direct comparison between providers requires understanding your specific circumstances **Key caveat:** One member emphasized that while percentage-based fees might seem high in abstract terms, the cashflow benefit often justifies the cost for growing businesses.
Is it standard practice for invoice finance providers to charge factoring fees on credit notes, and should members be paying multiple fees on related invoices?
No — charging factoring fees on credit notes is not standard practice and members should push back on this. One member reported being charged 1.6% factoring fees on three separate items: the original invoice, a credit note cancelling it, and a replacement invoice for redelivered goods after a recall. This resulted in an effective fee of 5% — well above the typical single charge. When questioned in the community, the response was direct: this practice is not normal. Members should clarify with their invoice finance provider whether fees should only apply to invoices actually advancing funds, not to administrative credit notes. If your provider is charging multiple fees on related transactions, it may be worth negotiating the terms or exploring alternative providers.
What are the specific fees and margin impacts of selling drinks via Amazon FBA (Fulfilled By Amazon)?
Amazon FBA involves two main fee categories that collectively reduce margins significantly: - **Referral fee**: 10–15% of selling price, depending on product category - **Shipping/fulfilment fee**: Approximately 10% of selling price, dependent on item size and weight Members should expect these two fees to combine for a substantial margin reduction when calculating profitability on Amazon FBA sales. The exact referral fee percentage varies by category, so it's worth checking your specific product classification on Amazon's fee schedule. Shipping fees are particularly sensitive to package dimensions and weight, so optimising packaging can help reduce costs.