Zettle Reader 2: Enhanced Features and Improved Functionality for Small Businesses

2 minute read
Written by Lee Hart
TABLE OF CONTENTS

Looking for a simple way to accept card payments for your small business? The Zettle Reader 2 might be just what you need. This compact, wireless card reader connects to your smartphone or tablet via Bluetooth, allowing you to take payments anywhere your business takes you. The device accepts all major credit cards, contactless payments, and works with various point-of-sale apps without locking you into long-term contracts.

The Reader 2 features a colour touch display and improved battery life, making it practical for businesses of all sizes. Many users report receiving their device within 24 hours of ordering, and setup is straightforward. The funds typically reach your bank account within 1-2 days, and if you already have a PayPal account, you can link it directly to your Zettle account for simplified accounting.

Key Takeaways

  • The Zettle Reader 2 allows businesses to accept credit card and contactless payments wirelessly with funds deposited within 1-2 days.
  • Setup is quick and easy with the device pairing to smartphones or tablets via Bluetooth, requiring no technical expertise.
  • There are no hardware rental fees or lock-in contracts, making it a flexible solution that can scale with your business.

What Is the Zettle Reader 2?

The Zettle Reader 2 is a compact payment terminal that allows businesses to accept card and contactless payments. This device connects to smartphones or tablets via Bluetooth and offers simple, secure transaction processing for merchants of all sizes.

Device Overview

The Zettle Reader 2 is a small, portable card payment device that succeeded the original iZettle Reader. It features a distinctive green button instead of the blue one found on the first generation model.

The device accepts all major payment methods including:

  • Chip and PIN cards
  • Contactless payments
  • Mobile wallets (Apple Pay, Google Pay)
  • Swipe cards

Weighing just a few ounces, the Reader 2 is lightweight and fits comfortably in one hand. It pairs with iOS or Android devices via Bluetooth and works with the Zettle app or other compatible point-of-sale software.

Battery life typically lasts for a full business day on a single charge, making it reliable for merchants on the move. The reader connects to only one smartphone or tablet at a time, though multiple staff members can have the app installed.

What's in the Box

When purchasing a Zettle Reader 2, you'll receive everything needed to start accepting payments immediately. The package includes:

  • Zettle Reader 2 device (available in white)
  • USB charging cable
  • Quick start guide
  • Warranty information

Some retailers may offer bundles that include the PayPal Dock as an optional accessory. The dock provides a stable base for the reader and keeps it charged throughout the day, which is particularly useful for fixed till locations.

The device comes ready to use after charging, requiring only the free Zettle app download and account setup to begin processing payments. No additional hardware is required to start accepting card payments.

Who Should Use the Zettle Reader 2

The Zettle Reader 2 is ideal for a wide range of business types and sizes. Small retailers, market traders, and mobile businesses particularly benefit from its portable design and simple setup.

Businesses appreciate that there are no hardware rental fees or lock-in contracts, and funds typically reach their bank accounts within 1-2 business days. The reader works well for:

  • Independent shops and boutiques
  • Cafés and restaurants
  • Mobile services (plumbers, hairdressers, etc.)
  • Market stalls and pop-up shops
  • Small businesses just starting to accept card payments

The flexibility of the Zettle Reader 2 makes it suitable for businesses looking to scale. It integrates with various POS apps and empowers small businesses with tools for seamless transactions and efficient sales management, making it an excellent choice for growing enterprises.

Key Features of Zettle Reader 2

The Zettle Reader 2 offers comprehensive payment processing capabilities with improved design and functionality compared to its predecessor. It supports multiple payment methods and integrates seamlessly with business management systems.

Contactless Payment Capabilities

The Zettle Reader 2 excels at handling contactless payments, accepting transactions up to £100 per transaction. This feature has become increasingly important as more customers prefer tap-to-pay options for speed and convenience.

The device supports all major contactless payment methods including:

  • Standard contactless credit and debit cards
  • Apple Pay and Google Pay for smartphone payments
  • Contactless-enabled wearable devices

The reader processes these transactions quickly, typically completing them in just a few seconds. This speed helps reduce queues and improves customer satisfaction, particularly during busy periods.

For businesses with high transaction volumes, the contactless functionality enables faster service without compromising security. The device uses industry-standard encryption to protect payment data during every transaction.

Chip and PIN Functionality

When contactless payments aren't suitable, the Zettle Reader 2 provides reliable chip and PIN processing. This method remains essential for transactions exceeding the contactless limit or when additional security is required.

The reader features a responsive keypad that makes PIN entry straightforward for customers. The buttons are well-spaced and tactile, reducing input errors during payment.

The chip reading technology is compatible with all major credit and debit cards including:

  • Visa
  • Mastercard
  • American Express
  • Maestro

Processing time for chip and PIN transactions is approximately 3-5 seconds, which is faster than many traditional card terminals. The reader guides customers through each step with clear on-screen instructions.

Security for chip and PIN transactions meets the latest industry standards, with full PCI DSS compliance to protect sensitive payment information.

Integration With Zettle by PayPal

The Zettle Reader 2 connects seamlessly to the Zettle by PayPal ecosystem, offering comprehensive business management capabilities beyond simple payment processing.

Setup is straightforward—users simply need to open the Zettle PayPal app and navigate to Settings > Card Reader, then follow the on-screen instructions. The reader pairs via Bluetooth with compatible smartphones and tablets.

The integration provides several key benefits:

  • Real-time sales tracking and reporting
  • Inventory management capabilities
  • Customer information storage (GDPR compliant)
  • Receipt options (email, SMS, or printed)

Transaction data syncs automatically to the Zettle dashboard, allowing business owners to access sales analytics anywhere. The system also facilitates end-of-day reconciliation and supports multiple staff accounts with different permission levels.

Battery Life and Charging

The Zettle Reader 2 features impressive battery performance, essential for businesses that operate on the move or in locations with limited power access.

On a full charge, the device delivers up to eight hours of active use or approximately 100 transactions. This capacity easily covers most business days without requiring mid-day charging.

Charging is convenient via the included USB cable, with a typical full charge taking only 1-2 hours. The reader is also compatible with the Zettle Dock 2, which provides:

  • A stable base for countertop use
  • Continuous charging while in use
  • Professional appearance for customer interactions

Battery status is clearly displayed within the Zettle app, allowing users to monitor power levels throughout the day. The device also incorporates power-saving features that extend battery life during periods of inactivity.

For businesses operating in multiple locations, the battery performance means you can confidently process payments all day without worrying about power sources.

Design and Build Quality

The Zettle Reader 2 stands out for its thoughtful design elements and robust construction. It balances aesthetic appeal with practical functionality to meet the demands of daily business use.

Physical Dimensions

The Zettle Reader 2 features a compact and ergonomic design that fits comfortably in the hand. Its dimensions make it easy to handle during transactions while remaining small enough to store when not in use.

The reader has an intuitive PIN pad that provides a familiar experience for customers. This physical keypad offers better tactile feedback than touchscreen alternatives.

Weight distribution is well-balanced, preventing fatigue during extended use periods. This is particularly important for businesses that process numerous transactions throughout the day.

The device includes a small but clear display screen that shows transaction information. The screen visibility remains good even under various lighting conditions, which is essential for outdoor vendors.

Materials and Durability

Constructed with high-quality materials, the Zettle Reader 2 is built to withstand the rigours of daily commercial use. The outer casing is made of durable plastic that resists scratches and minor impacts.

The reader has been designed with longevity in mind, featuring reinforced corners that provide additional protection against drops. This durability is crucial for mobile businesses or busy retail environments.

The buttons and PIN pad are made from resilient materials that can endure thousands of presses without degrading. This prevents the common issue of worn keys that plague lesser card terminals.

Battery life is impressive, offering up to eight hours of continuous use or approximately 100 transactions on a single charge. The device charges fully in about 1-2 hours via a standard USB cable.

Set-Up and Configuration

Setting up your Zettle Reader 2 requires just a few straightforward steps to get your payment system up and running. The process involves connecting the device to your mobile technology and configuring the accompanying app.

Connecting to Smartphones and Tablets

To begin using your Zettle Reader 2, first ensure the device is fully charged using the included Micro-USB cable or the iZettle Dock 2. Once charged, power on the reader by pressing the button on top of the device.

The reader's screen will display the battery status and the last three digits of its serial number. Make note of these digits as you'll need them for the pairing process.

Before connecting, ensure your smartphone or tablet has both Bluetooth and Location services enabled. This is essential for the pairing process to work properly.

The Zettle Reader 2 is compatible with most modern iOS and Android devices. For optimal performance, ensure your mobile device's operating system is updated to the latest version.

Pairing With the Zettle App

First, download the appropriate Zettle app for your business needs. Zettle Go is available on both App Store and Google Play, while Zettle Pro is only available from the App Store.

After installing the app, create an account or log in to your existing Zettle account. Navigate to the settings menu, then select the card reader option.

When prompted, select "Connect a card reader" and choose Zettle Reader 2 from the options. The app will search for available devices.

Under "Detected Card Readers", tap the reader that displays the same last three digits as shown on your Zettle Reader 2 screen. The app will then establish a connection.

Once paired, your reader will be ready to accept payments, including contactless, chip and PIN, and magnetic stripe transactions.

How to Use Zettle Reader 2

The Zettle Reader 2 offers a streamlined payment process with reliable connectivity options and clear steps for both accepting payments and handling refunds. Proper setup ensures smooth transactions for your business.

Accepting Payments

To accept payments with your Zettle Reader 2, first ensure the device is charged and turned on. The reader offers up to eight hours of battery life, which is approximately 100 transactions.

Connect your reader to your smartphone or tablet via Bluetooth:

  1. Open the Zettle PayPal app
  2. Go to Settings > Card Reader
  3. Follow the on-screen instructions to complete pairing

When taking a payment:

  1. Enter the amount in the Zettle app
  2. Select payment method
  3. Hand the reader to your customer
  4. The customer taps, inserts, or swipes their card
  5. Wait for confirmation on both the reader and app

The Zettle Reader 2 requires an internet connection to process payments. Make sure you have access to 3G, 4G, or WiFi before beginning transactions.

Issuing Refunds

Issuing refunds with the Zettle Reader 2 is straightforward when following the proper steps in the app interface.

To process a refund:

  1. Open the Zettle PayPal app
  2. Navigate to the Sales History section
  3. Find and select the transaction you wish to refund
  4. Tap the Refund button
  5. Choose whether to refund the full amount or a partial amount
  6. Enter your refund reason (optional but recommended)
  7. Confirm the refund details

For partial refunds, you'll need to specify which items are being refunded or enter a custom amount. The refund will be processed to the same payment method used for the original transaction.

Remember that refunds typically take 2-10 business days to appear in the customer's account, depending on their bank. The transaction fee from the original sale is non-refundable.

Supported Payment Methods

The Zettle Reader 2 accepts a wide range of payment options, giving your customers flexibility when making purchases. This versatility helps businesses serve more customers and increase sales opportunities.

Credit and Debit Cards

The Zettle Reader 2 handles all major credit and debit cards including Visa, Mastercard, American Express, and Maestro. It processes both chip and PIN transactions for enhanced security, especially useful for larger purchases.

The device also supports contactless payments for transactions up to £100, making checkout faster for customers. This capability is particularly valuable in busy retail environments where queue management is important.

For businesses that need to take payments remotely, Zettle offers payment links that can be sent directly to customers. This feature is perfect for collecting deposits or invoice payments without the customer being physically present.

Apple Pay and Google Pay

The Zettle Reader 2 fully supports digital wallet payments through both Apple Pay and Google Pay. These smartphone-based payment methods offer customers a convenient, contactless option without physical cards.

Digital wallet transactions are processed at the same fee rate as standard card payments (1.75% for in-person transactions), making them cost-effective for merchants to accept. There's no additional charge for offering this payment method.

These payment options work through the device's NFC technology, allowing customers to simply hold their smartphone near the reader to complete transactions. The process is quick, secure and helps reduce checkout time significantly.

Integration With Business Tools

The Zettle Reader 2 offers powerful connectivity options that help streamline business operations through seamless integrations. Its ability to work with various software platforms can save time, reduce errors, and provide valuable business insights.

POS System Integration

Zettle Reader 2 integrates with multiple POS systems, making it a versatile choice for diverse business types. The device works with Zettle's own POS apps—Zettle Food & Drink and AirPOS—providing specialised solutions for different sectors.

The integration allows merchants to:

  • View and manage sales data in one place
  • Track inventory levels in real-time
  • Access customer data across platforms
  • Process payments without switching between systems

For retail businesses, this means smoother checkout experiences and better inventory management. Food service establishments benefit from table management features and integrated ordering systems. The Reader 2 connects to these systems via Bluetooth, ensuring reliable performance even in busy environments.

Accounting Software Integration

Zettle automatically syncs your sales data with compatible accounting software, eliminating the need for manual data entry and reducing potential errors. This integration provides daily transfer of transactions and payment information.

Key benefits include:

  • Automated data transfer: Sales records move seamlessly to your accounting system
  • Time savings: No need to manually input sales figures
  • Improved accuracy: Reduces human error in financial record-keeping
  • Better reporting: Generate comprehensive financial reports with combined data

The system works with popular accounting platforms used by small and medium businesses in the UK. Setting up these integrations typically takes just a few minutes through the Zettle dashboard. For businesses handling multiple transactions daily, this automatic syncing feature can save hours of administrative work each week.

Security and Compliance

The Zettle Reader 2 incorporates robust security measures to protect both merchant and customer data. These features ensure transactions remain secure and that the device meets rigorous industry standards.

Encryption and Data Protection

Zettle Reader 2 utilises advanced encryption technology to safeguard sensitive payment data. All card information is encrypted immediately upon being read, preventing unauthorised access to customer details. The device never stores complete card information, further reducing security risks.

To maintain security, merchants should keep card readers attended by staff members and regularly update the reader's software. Zettle provides automatic updates that address potential vulnerabilities.

The system includes built-in tamper detection that locks the device if physical tampering is detected. Should a security alert occur, such as "Security Alert Code: 2", users need to contact Zettle Customer Support for assistance.

PCI Compliance

Zettle Reader 2 is fully PCI-certified, meeting all requirements of the Payment Card Industry Data Security Standard (PCI DSS). This certification ensures the device follows strict industry protocols for handling payment card data.

The PCI compliance covers several critical areas:

  • Secure network maintenance
  • Cardholder data protection
  • Vulnerability management
  • Strong access control
  • Regular security testing

Merchants using Zettle Reader 2 benefit from this compliance without needing to manage complex certification processes themselves. Zettle continually monitors for new threats and updates their systems accordingly.

For additional security, Zettle recommends implementing a cyber security checklist that includes enabling multi-factor authentication for associated accounts and following email security best practices.

Pricing and Transaction Fees

The Zettle Reader 2 offers straightforward pricing with competitive transaction fees. The card reader itself costs £149 excluding VAT, making it an accessible option for businesses of all sizes.

For card and contactless payments, Zettle charges a fixed transaction fee of 1.75%. This rate applies regardless of which card you process with your card reader or terminal.

For other payment methods, the fees may vary. Digital invoicing transactions through Zettle are charged at 2.5% per transaction.

Fee Breakdown:

  • Card and contactless payments: 1.75%
  • Digital invoicing: 2.5%

It's worth noting that these fees are subject to change. Zettle provides detailed fee schedules to merchants, which include transaction references and a breakdown of costs.

The Zettle app makes it easy to review your transaction and fee reports. This transparency helps businesses track their expenses and manage their finances effectively.

Compared to other card readers in the UK market, Zettle's fees are among the lowest in the industry. This makes it particularly attractive for small businesses looking to minimise overhead costs.

Customer Support and Warranty

The Zettle Reader 2 comes with a standard warranty that begins on the date of delivery or collection. This warranty protects customers against manufacturing defects under normal use conditions.

When experiencing issues with the Zettle Reader 2, customers can access troubleshooting guides through the official Zettle website. These resources help resolve common problems without needing to contact support directly.

For more complex issues, Zettle offers dedicated customer support. Users can reach out through the contact support page on the Zettle website.

It's important to note that the warranty does not cover damages caused by:

  • Normal wear and tear
  • Improper use
  • Accidents
  • Malicious damage
  • Environmental conditions (excess humidity, liquid damage)
  • Electrical stress

If a Zettle Terminal displays security alerts such as "Security alert CODE: 2", it may become locked. In such cases, customers should contact PayPal Customer Support promptly.

The PayPal Zettle warranty requires users to have a PayPal Business account to utilise the service. This requirement ensures proper account management and support access.

Zettle records telephone calls to their customer support for quality assurance and training purposes. This practice helps maintain high service standards.

Pros and Cons

The Zettle Reader 2 offers several advantages and disadvantages for businesses considering this card payment solution.

Pros:

  • Transparent pricing with no monthly fees on a pay-as-you-go model
  • Extremely affordable at just £29 for your first reader (excluding VAT)
  • Compact and lightweight design making it ideal for mobile businesses
  • Accepts a wide range of payment networks for customer convenience
  • Simple commission structure that's easy to understand

The reader is also remarkably easy to set up, with minimal technical knowledge required to get started.

Cons:

  • Additional readers cost significantly more at £59 each
  • The device can sometimes take a while to connect when processing payments
  • Limited functionality compared to more advanced payment terminals
  • Requires connection to a smartphone or tablet to operate

The main visible difference from the previous model is the green button instead of the blue one, making it a minor upgrade rather than a complete redesign.

For small businesses that need mobility, the Zettle Reader 2 provides an excellent solution, while fixed locations might benefit more from the Zettle Payment Terminal.

Comparison With Competitors

The Zettle Reader 2 faces stiff competition from other popular card readers in the UK market. Price points, transaction fees, and device capabilities differ significantly between these leading options, affecting which one might be best for different business needs.

SumUp Air

The SumUp Air reader offers solid competition to the Zettle Reader 2 at a competitive price point of just £39. This makes it slightly more affordable than the Zettle Reader 2, which typically costs £29-£59.

SumUp Air accepts all major payment methods including:

  • Chip and PIN
  • Contactless payments
  • Magnetic stripe cards
  • Apple Pay and other digital wallets

The device connects via Bluetooth to smartphones and tablets, working with the SumUp app on both Android and iOS. Battery life is comparable to Zettle's offering, though the SumUp tends to have a slightly bulkier design.

For businesses with limited transaction volumes, SumUp Air presents a great alternative to the Zettle Reader 2. Its transaction fees are competitive but typically don't offer the same volume discounts as Zettle.

Square Reader

The Square Reader is another major competitor, known for its compact design and powerful app ecosystem. At a similar price point to Zettle Reader 2, Square offers excellent value with its comprehensive business management features.

Square's transaction fees are comparable to Zettle's at 1.75% per transaction for in-person payments. The Square app provides more robust features than many competitors, making it ideal for businesses needing detailed analytics and inventory management.

The Square Reader itself is notably smaller than the Zettle Reader 2, which some merchants prefer for portability. However, this compact size comes with a trade-off – it doesn't have a built-in display like the Zettle Reader 2.

Square also offers better integration with various third-party services and e-commerce platforms. For businesses needing an omnichannel solution, Square typically edges out Zettle in terms of ecosystem breadth.

User Reviews and Feedback

The Zettle Reader 2 has received mixed reviews from users across various platforms. On Trustpilot, the device holds an average rating of 3.4 out of 5 stars, indicating moderate satisfaction among customers.

Many positive reviews highlight the reader's reliability and the simplicity of the app. The Zettle Card Reader 2 has been praised for helping small businesses increase revenue significantly, especially in a post-Covid environment where cash payments have declined.

Some users report that the reader initially performed admirably. One business owner mentioned that the device was "a brilliant little addition" to their business, allowing them to take in-person card payments with minimal investment.

However, several negative reviews focus on specific issues. Customer complaints mention the company's implementation of a three-to-four-day delay in transferring funds, which has significantly reduced the service's value for some merchants.

The durability of the device has also been questioned. Some users report that the card reader's quality is poor, necessitating frequent replacements and creating additional costs.

Customer service is available on weekdays between 9am and 5pm via phone or email, though response times aren't consistently praised in user feedback.

Final Verdict

The Zettle Reader 2 stands out as a top choice for small businesses needing a reliable payment solution. With its simple interface and support for multiple payment types including chip cards and contactless payments, it delivers excellent value.

The device works seamlessly with both iOS and Android devices, requiring iOS 10+ or Android 5.0+ to function properly. This wide compatibility ensures most business owners can use the reader regardless of their preferred mobile platform.

Setup is straightforward, though businesses must complete a brief application process including a credit check and identity verification before ordering their device.

The reader's Bluetooth and WiFi connectivity options provide flexibility for various business environments. This versatility has contributed to its popularity among small business owners who need mobility in their payment solutions.

For UK businesses specifically, the Zettle Reader 2 offers an affordable and feature-rich option that simplifies transactions while keeping operational costs low.

The device's support for modern payment methods—including Apple Pay and Google Pay—ensures businesses can meet customer expectations for convenient payment options.

Based on its performance, features and cost-effectiveness, the Zettle Reader 2 proves to be a reliable payment solution particularly well-suited to small and medium-sized businesses in the UK market.

Frequently Asked Questions

The Zettle Reader 2 offers several key features and support options that merchants should know about before purchasing. Users commonly ask about pricing, unique capabilities, troubleshooting steps, and ongoing costs.

How is the Zettle Reader 2 priced compared to its competitors?

The Zettle Reader 2 is competitively priced in the mobile payment terminal market, generally costing less than many traditional card payment systems. New merchants often receive discounted pricing on their first reader.

Unlike some competitors who charge monthly fees, Zettle focuses on per-transaction fees rather than high upfront equipment costs. This makes it particularly attractive for small businesses and occasional sellers who don't process high payment volumes.

What are the unique features of Zettle Reader 2?

The Zettle Reader 2 accepts contactless, chip and PIN payments, and works with major credit and debit cards. It connects to smartphones or tablets via Bluetooth, allowing merchants to process payments anywhere.

One distinctive feature is its ability to function with both iOS and Android devices through the Zettle app. The reader displays transaction information on its screen and has a battery life designed to last a full business day.

If the device encounters issues, users can easily restart the reader by holding down the power button for up to 3 seconds. This simple troubleshooting step resolves many common problems.

Where can one purchase the Zettle Reader 2?

The Zettle Reader 2 can be purchased directly from the official Zettle website. This ensures buyers receive authentic products with full warranty coverage.

Some retail partners and business supply shops also stock the readers. Delivery typically takes 1-2 working days within the UK, making it a quick solution for businesses needing to accept card payments rapidly.

Are there any recurrent charges associated with using the Zettle Reader 2?

Zettle doesn't charge monthly subscription fees for basic card processing services. Instead, they charge a percentage fee per transaction.

There are no hidden costs for standard usage, though specialised features within the Zettle ecosystem might carry additional charges. Merchants should note that an internet connection is required for the reader to function, so they'll need access to 3G, 4G or Wi-Fi.

How does the Zettle Reader 2 perform in consumer reviews?

The Zettle Reader 2 generally receives positive reviews for its reliability, ease of use, and compact design. Business owners particularly praise its quick transaction processing and intuitive interface.

Some reviewers highlight the reader's durability compared to previous models. The battery life consistently meets expectations, allowing for full-day usage in most retail environments.

What after-sales support is available for Zettle Reader 2 users?

Zettle provides comprehensive support through their online help centre, which includes detailed troubleshooting guides for common issues. Users can find solutions for connectivity problems, payment failures, and hardware concerns.

For more complex issues, Zettle offers customer support via email and telephone. Their team can help with everything from basic setup questions to addressing specific payment processing challenges.

The company also provides regular software updates to maintain security and add new features to the reader. These updates help ensure the device remains compliant with payment industry standards.