When you're getting ready to start selling at vendor markets, one of the decisions you'll eventually have to make is how you're going to accept payments. Cash is pretty straightforward, but what happens when someone wants to pay with a credit card? What about Apple Pay? Venmo? Cash App? Do you need a card reader? Can you just use your phone? And how much is all of this going to cost you?
There are plenty of options available, and if you've spent any time researching them, you've probably noticed that every company seems to think its solution is the best one for your business. I've used a few different payment processors over the years, and I've developed some pretty strong preferences. But just because something works for my business doesn't mean it's necessarily the right choice for yours.
So, let's talk about the options, the fees, the equipment, and some of the things I think vendors should consider before deciding how they're going to accept payments.
My First Payment Processor Was PayPal
When I started selling, PayPal was already a familiar name. People recognized it, trusted it, and were comfortable using it to pay for things online. It was a natural place for me to start, and even though I've moved on to a different primary processor, I haven't completely abandoned PayPal.
I still have PayPal available as a payment option on my website, and I have an older PayPal card reader that I've used as a backup at events. It's been quite a while since I've needed it, but I like knowing I have another option available if something goes wrong with my regular setup.
One thing to remember when using multiple payment processors is that they don't necessarily communicate with each other. If I process a payment outside Shopify, I have to make sure the inventory gets adjusted accordingly. Otherwise, I risk selling something online that I've already sold at an event.
That's not necessarily a problem for everyone. If you're selling products you can easily reproduce, it might not matter as much. But when you're working with limited inventory, handmade products, or one-of-a-kind items, keeping accurate inventory becomes pretty important.
Why I Use Shopify POS
If you've followed me for any length of time, you probably already know that Shopify is my home.
My website runs on Shopify, and I use Shopify POS for my in-person sales. That means whether someone purchases something from my website or walks into my booth at a vendor market, those sales are being processed through the same system. For me, that's incredibly valuable because I'm not spending my evenings after an event manually subtracting everything I sold from my website inventory.
My sales reports are in one place, I can see what products are selling, and I don't have to piece together information from multiple apps. I also use Shopify Balance for my business banking, which makes managing my finances considerably easier. My accountant has access to the information they need, and I don't have to spend hours trying to figure out where transactions originated.
But Shopify wasn't necessarily the easiest platform for me to learn.
When I first moved my business to Shopify, I spent a LOT of time figuring out how everything worked. This was before many of the tools and automated assistance available today existed. I was learning how to build my website, manage products, organize collections, and operate the point-of-sale system. There was a learning curve, and there were definitely moments when I was frustrated enough to question whether I'd made the right decision.
Once I had everything working together, though, I appreciated having one central location for my business. And now that I've been using it for years, I genuinely cannot imagine going back to managing everything separately.
The Equipment
I use a Shopify card reader and its accompanying dock. I also have an iPad with its own cellular service that I use specifically for my point-of-sale system. That cellular connection is important to me because I don't want to depend on an event organizer providing Wi-Fi, and I don't particularly want to depend on my personal phone being available every time someone wants to make a purchase.
After Hurricane Ian flooded my home, my original Shopify reader and dock were ruined. I contacted Shopify, explained what had happened, and they offered to replace both pieces of equipment at no charge. They certainly weren't obligated to do that, and it's an experience I've never forgotten. Customer service matters to me, especially when I'm relying on a company to help me operate my business.
Now, does that mean everyone needs to purchase a dedicated iPad, cellular service, card reader, and dock before attending their first vendor market? Absolutely not. My setup is the result of years of running my business and figuring out what works best for me. You don't need to duplicate it to get started, and I certainly didn't have all of this equipment when I attended my first events.
What About Square?
Square is another popular option among vendors, and for good reason. It's recognizable, offers several ways to accept payments, and can be a practical starting point for someone who doesn't need a full ecommerce website or an extensive inventory management system.
I've used Square on the organizer side of events, including processing payments and invoicing vendors. It's also been used for merchandise and other event-related sales. While Shopify is my preference for my own business, I can absolutely understand why someone just getting started might choose Square.
One of the things I appreciate about Square is that a vendor can begin with a relatively simple setup and expand as their needs change. But I would encourage anyone considering it to look beyond the basic transaction fee. Depending on the features you need, there may be additional costs associated with software, hardware, or other services.
The same applies to Shopify, by the way. Don't compare two platforms based solely on the percentage they charge to process a credit card. Look at what you're getting for your money and whether you're actually going to use those features. There's no reason to pay for a bunch of tools your business doesn't need simply because another vendor swears by them.
Venmo and Cash App
Here's where my personal preferences become a little stronger.
I don't accept Venmo or Cash App for business transactions. That doesn't mean I think every vendor who uses them is doing something wrong. Plenty of legitimate businesses accept payments through these platforms, and if that's working for them, fantastic. For me, though, they aren't necessary.
I've spent years watching scammers use familiar payment apps to collect money from vendors who believe they're paying legitimate event organizers. Those experiences have certainly influenced how I feel about using them for business, but my bigger issue is that I don't want my sales scattered across multiple applications.
If someone purchases something from my booth, I want that transaction recorded in my point-of-sale system. I want the inventory adjusted, the payment documented, and the sale included in my reporting. Could I manually reconcile payments received through other applications? Of course. But why would I want to create additional work for myself when I already have a system that handles those things?
If you're considering accepting payments through Venmo or Cash App, make sure you're using the appropriate business features and understand their terms, fees, and protections. Don't assume that because an app allows someone to send you money, every type of business transaction is automatically covered.
Can We Talk About These Zero-Fee Advertisements?
Because these drive me absolutely insane.
I cannot tell you how many advertisements I've seen promising that you can turn your phone into a credit card reader and accept payments with ZERO processing fees. And they're not all coming from the same company, either. It seems like every time I scroll through social media, another advertisement pops up promising that I can eliminate processing fees simply by switching to whatever service they're promoting.
Sometimes the advertisement makes it sound like they've somehow discovered a revolutionary way to process credit cards without anyone paying for the service. Other times, you start looking into the details and discover that the offer only applies to a limited amount of transactions, a promotional period, or a particular type of payment. And sometimes the processing costs haven't disappeared at all. They've simply been shifted somewhere else.
For example, some programs allow businesses to pass certain card-processing costs along to customers through a surcharge or other pricing arrangement, subject to applicable rules. That doesn't mean the transaction was processed for free. It means someone else paid the fee.
I'm not suggesting that every company advertising reduced or zero processing fees is being dishonest. There are legitimate promotional offers and different pricing models available. But I think vendors need to understand exactly what they're signing up for instead of being drawn in by a headline that sounds too good to be true.
If a company advertises zero processing fees, I want to know how that works. Is there a monthly subscription? Does the customer pay an additional charge? Is the offer temporary? Does it apply to every transaction? What happens when the promotional period ends?
And perhaps most importantly, what does the service cost once everything is accounted for?
Processing fees are a cost of doing business. I understand that, and I build those expenses into how I operate. What I don't appreciate is advertising that makes something sound completely free when the actual arrangement is considerably more complicated.
Read the fine print. Then read it again.
What About Zettle and Jim?
Two other names worth mentioning are Zettle and Jim.
Zettle has been associated with PayPal's in-person payment offerings, although the specific products and availability have changed over time. If you're already using PayPal, it's worth checking which current in-person payment options are supported rather than assuming an older reader or service is still available.
Jim is one of the companies whose advertising caught my attention because of the emphasis on processing costs. I haven't personally used Jim, so I'm not going to pretend I can give you a hands-on review of its equipment or service. What I can tell you is that I approach those advertisements with the same questions I would ask of any payment processor.
How much does it cost? Who pays the processing fees? What equipment do I need? How quickly do I receive my money? And what happens if something goes wrong?
Those questions matter considerably more to me than a flashy advertisement promising to save my business money. A processor could offer me the lowest transaction fees in the world, but if I can't depend on it to work when I'm standing in front of a customer, those savings aren't doing me much good.
Let's Talk About Processing Fees
I occasionally hear vendors say they don't want to accept credit cards because they don't want to pay processing fees. I understand wanting to keep expenses down. We're all trying to make money, and nobody particularly enjoys watching part of a sale disappear into fees. But I also think it's important to consider what happens when a customer wants to purchase something and doesn't have cash.
Are you willing to lose that sale?
That's a decision every business owner has to make for themselves. For my business, accepting cards is worth the expense.
At a recent market, I processed $845.74 in credit card sales and $382 in cash sales. That's a pretty significant difference, and while those numbers don't prove that every customer who paid with a card would have walked away if I only accepted cash, I certainly wouldn't want to depend on them finding another way to pay.
Some customers might have gone to an ATM. Others might have had cash tucked away somewhere. But how many would have simply said, "Oh, that's okay," and kept walking? I have no way of knowing, and I don't particularly want to find out.
I also wouldn't recommend raising your prices at the register simply because someone wants to pay with a card without first understanding the applicable rules and disclosure requirements. My preference is to account for processing costs when determining my pricing, just as I account for packaging, supplies, vendor fees, and other business expenses.
Internet Connections and Offline Payments
Here's something that doesn't get discussed nearly enough when vendors are choosing payment processors: What happens when you don't have an internet connection?
I've worked events where cellular service was fantastic, and I've worked events where getting a reliable connection was a challenge. Large crowds can make that problem worse, especially when thousands of people are trying to use the same cellular networks.
Some payment systems offer offline processing capabilities, but vendors need to understand what that actually means. An offline transaction isn't necessarily the same as a successfully authorized payment. Depending on the processor and the circumstances, you may be accepting the risk that a transaction will be declined when the device reconnects.
I've actually experienced this firsthand. I processed a transaction during a period of poor connectivity, and the payment was ultimately declined. By the time I discovered the problem, the customer and the merchandise were long gone. That was enough for me to decide I wasn't going to use offline payments anymore.
If my regular point-of-sale connection isn't cooperating, one workaround I've used is directing a customer through my website checkout and removing the shipping charge for the in-person purchase. That still requires a working internet connection, but it gives me another way to complete the transaction when the issue is specific to my POS setup.
The important thing is having a plan before you're standing in front of a customer who wants to hand you money. And if you're considering something like Starlink or another dedicated internet solution for your booth, remember that the additional equipment and service costs need to make sense for your business.
How Quickly Do You Get Your Money?
Another thing I encourage vendors to investigate is payout timing. Just because a customer pays you today doesn't necessarily mean the money will be available in your bank account today.
Different processors have different payout schedules, and some offer faster access to funds through specific accounts or paid instant-transfer options. I use Shopify Balance, and I've personally experienced very fast access to my sales proceeds. I've had money become available within minutes of finishing a Sunday market.
That convenience is valuable to me, particularly when I'm purchasing supplies or preparing for another event. But payout timing can depend on your account, the payment method, the provider's schedule, and other circumstances. It's also important to understand the difference between a normal payout schedule and a payment hold or account review.
If you're operating on a tight budget, knowing when your money will actually be available can make a significant difference. Especially if you're counting on the money from this weekend's market to purchase supplies for next weekend's event.
Don't Forget About Cash
After all this talk about electronic payments, I want to make something clear. I still accept cash.
I bring a cash bank with smaller bills so I can make change, and I record my cash sales through my point-of-sale system. That last part matters because just because someone hands me cash doesn't mean the transaction should disappear from my sales records.
I still want to know what sold, how much I made, and what inventory needs to be adjusted. Having all of that information together makes it easier to see how my business is performing, regardless of how someone chooses to pay.
You don't need an expensive cash drawer to accomplish that, either. When I first started, I used one of my zippered pouches to keep my cash organized. Eventually, I upgraded to a locking cash drawer, but that was a decision I made as my business grew.
Start with what makes sense for you. There's nothing wrong with upgrading your equipment as your business grows, but don't convince yourself that you need to purchase everything before you've even attended your first market.
So Which Payment Processor Should You Choose?
I wish there were one perfect answer, but there isn't.
If you're attending your first few vendor markets and don't have an online store, you may find that Square provides everything you need without adding unnecessary complexity. If you're already selling through Shopify, using Shopify POS may make sense because your online and in-person sales can work together. And if you've been using PayPal for years and are comfortable with its current payment offerings, there's nothing wrong with exploring whether those options meet your needs.
What matters is understanding what you're paying for and whether the system supports how you actually operate your business.
Personally, I want accurate inventory, detailed sales reports, dependable equipment, reasonable access to my money, and customer support I can reach when something goes wrong. I'm willing to pay processing fees for those things because I see the value they provide to my business.
Someone else may have completely different priorities, and that's okay. A vendor attending three markets a year doesn't necessarily need the same equipment or software as someone attending events every weekend while also operating an online store.
Just don't choose a payment processor because an advertisement promises that everything is free, and don't assume that the platform another vendor loves is automatically the best one for you. Do your research, ask questions, and understand the costs before committing.
Because at the end of the day, your payment processor should make running your business easier, not give you another problem to solve.
Now I'm curious: What payment processor are you using for your vendor business? Have you ever had an issue with equipment, connectivity, payouts, or customer service that made you reconsider your choice?
I'd love to hear about it.