Card Machine Complaints in 2026: FOS Route After 8 Weeks

LAST REVIEWED 2026-09-06

Who can complain to the Financial Ombudsman about a card machine provider?

Micro-enterprises and small businesses can complain to the Financial Ombudsman about card machine providers. A micro-enterprise has under 10 staff and turnover or balance sheet under €2 million. A small business has under 50 staff and turnover under £6.5 million or balance sheet under £5 million. Larger businesses cannot use the Ombudsman and must pursue court action.

The table above shows the eligibility criteria. If your business meets the size thresholds, you can bring a complaint about contract terms, fees, or service failures. The Ombudsman can consider complaints about most payment providers, including banks and independent sales organisations. Check your contract to confirm the provider is covered by FOS jurisdiction.

To verify eligibility, count your staff and review your latest annual turnover or balance sheet. If you are a sole trader or partnership, you likely qualify as a micro-enterprise. Charities and trusts may also qualify if they meet the size tests. If you are unsure, contact FOS directly for a preliminary assessment.

What is the 8-week rule for card machine complaints?

The 8-week rule means your payment provider has up to 8 weeks from receiving your complaint to send a final response. If they fail to do so, you can escalate to the Financial Ombudsman Service. This rule applies to all eligible businesses, including micro-enterprises and small businesses.

The clock starts when you first raise the complaint with your provider. They must acknowledge it and investigate. If they cannot resolve it within 8 weeks, they must explain why and give you a final response or a holding letter. If you do not receive a final response, you can refer the case to FOS.

Keep records of all correspondence, including dates and reference numbers. If the provider misses the deadline, you can submit your complaint to FOS using their online form. The Ombudsman will then review the case independently. The 8-week period is a minimum; you can also complain earlier if the provider sends a final response that you reject.

What can the Financial Ombudsman decide on for card machine complaints?

The Financial Ombudsman can decide on complaints about unfair contract terms, hidden fees, mis-selling, poor service, and breaches of regulations. For card machine contracts, common issues include unexpected exit fees, unapproved charges, and failure to provide clear information. The Ombudsman can also consider complaints about PCI DSS costs and chargeback handling.

When you complain, you must explain how the provider breached rules or acted unfairly. The Ombudsman will assess what is fair and reasonable in the circumstances. They can order the provider to apologise, correct the issue, or pay compensation. They can also direct the provider to change contract terms or cancel a contract if it is unfair.

For example, if a provider imposes an 18-month minimum term without clear disclosure, the Ombudsman may find that unfair. They can also consider complaints about misleading sales practices. The Ombudsman's decision is binding on the provider if you accept it, but you are free to reject it and go to court.

What are the award limits for Financial Ombudsman complaints in 2026?

From 1 April 2026, the Financial Ombudsman can award up to £455,000 for acts or omissions on or after 1 April 2019. This limit applies to both micro-enterprises and small businesses. For older cases, the limit may be lower. The award covers financial loss, distress, and inconvenience.

The table above shows the maximum award for each business type. Larger businesses are not eligible for FOS, so they cannot receive an award. The £455,000 limit is a cap on what the Ombudsman can order the provider to pay. If your loss exceeds this, you may need to go to court to recover the full amount.

When calculating your claim, include all direct losses, such as overcharged fees, plus any consequential losses. The Ombudsman can also award interest. However, the total cannot exceed £455,000. If you believe your loss is higher, consider seeking legal advice about court action.

Which complaints cannot be taken to the Financial Ombudsman?

Complaints from larger businesses, as defined by the size thresholds, cannot be taken to the Financial Ombudsman. Also, complaints about providers not covered by FOS jurisdiction, such as unregulated entities, are excluded. Complaints that are frivolous or vexatious may be rejected. Complaints about commercial decisions, such as pricing, are not automatically covered unless they are unfair.

If your business exceeds the staff or turnover limits, you cannot use FOS. Similarly, if your complaint is about a matter that FOS cannot consider, such as a dispute over a business loan, it will be dismissed.

Before complaining, check whether your provider is regulated by the FCA or another body that FOS covers. Most card machine providers are covered, but some may not be. If you are unsure, ask the provider for their FOS registration number. If they refuse, you can contact FOS to verify.

How should a business write a complaint to a card machine provider?

To start the 8-week clock, you must send a formal complaint to your provider in writing. Include your account details, a clear description of the problem, and what you want them to do to resolve it. Keep a copy of the letter or email. You can also use the provider's internal complaints procedure, which they must make available.

Your complaint should be specific and factual. Mention any relevant dates, amounts, and contract clauses. For example, if you were charged an exit fee that you believe is unfair, quote the contract term and explain why it is misleading. Attach copies of any evidence, such as statements or emails.

After sending the complaint, the provider must respond within 8 weeks. If they do not, you can escalate to FOS. When you escalate, you will need to provide the same information to FOS. A well-documented complaint will speed up the process. If you need help, you can use FOS's online complaint form, which guides you through the steps.

What data does the Financial Ombudsman publish on payment complaints?

The Financial Ombudsman publishes annual data on complaints about payment services, including card acquiring. This data shows the number of complaints received, upheld, and the types of issues raised. For example, in recent years, complaints about card machines have included issues with contract terms and fees.

The table below shows the timeline of UK card acceptance rules, which can inform your complaint. For instance, the 18-month cap on new POS terminal lease contracts, effective July 2023, is a key rule. If your contract was signed after that date and has a longer term, it may be unfair.

You can use this data to understand common issues and how FOS typically rules. However, each case is decided on its merits. The Ombudsman's decisions are not binding on other cases, but they provide guidance. If you are considering a complaint, review the latest data to see if your issue is common.

How does the 18-month cap on terminal leases affect complaints?

The 18-month cap on new POS terminal lease contracts, introduced in July 2023, means that providers cannot lock you into a lease longer than 18 months. If you signed a contract after that date with a longer term, you may have grounds for a complaint. The cap applies to new contracts, not existing ones.

This rule was introduced by the Payment Systems Regulator to make it easier for businesses to switch providers. If your provider imposes a longer term, you can complain to them and then to FOS if necessary. The Ombudsman can order the provider to change the contract term or compensate you.

When complaining, reference the PSR rule and explain how the provider breached it. The table above shows the timeline of regulatory changes. If your contract was signed before July 2023, the cap may not apply, but you can still complain if the term is unfair under general consumer protection law.

What should a business check before escalating to the Financial Ombudsman?

Before escalating, check that you have given the provider 8 weeks to respond. Confirm that your business meets the eligibility criteria. Verify that the provider is covered by FOS. Gather all evidence, including your complaint letter, the provider's response, and any relevant contracts or statements.

Also, check the amount you are claiming. If it exceeds £455,000, you may need to go to court. The Ombudsman can only award up to that limit. If your claim is smaller, FOS is a free and faster alternative to court.

Finally, consider whether you have followed the provider's internal complaints procedure. While not mandatory, it can help resolve the issue quickly. If you are unsure about any step, contact FOS for guidance. They can confirm if your complaint is within their jurisdiction.

How does the Financial Ombudsman handle complaints about exit fees?

Exit fees are a common source of card machine complaints. The Ombudsman will assess whether the fee is fair and reasonable. If the fee is disproportionate to the provider's loss, it may be considered unfair. For example, a fee that is higher than the remaining value of the contract may be challenged.

The 18-month cap on new contracts, effective July 2023, limits the maximum term, which can reduce exit fees. If your contract was signed after that date and has a longer term, the provider may not be able to enforce it. The Ombudsman can order the provider to refund any excessive fees.

When complaining about exit fees, provide a breakdown of the fee and explain why it is unfair. Reference the PSR rules and any relevant guidance. The Ombudsman will consider the specific circumstances of your case, including the contract terms and how they were presented to you.

Glossary: card payment terms explained

Financial Ombudsman Service (FOS): An independent body that resolves disputes between consumers and financial businesses. It can award compensation up to £455,000 for eligible complaints.

Micro-enterprise: A business with fewer than 10 staff and turnover or balance sheet under €2 million. Eligible to complain to FOS.

Small business: A business with fewer than 50 staff and turnover under £6.5 million or balance sheet under £5 million. Eligible to complain to FOS.

Final response: A written response from a provider that either accepts the complaint, offers redress, or rejects it. Must be sent within 8 weeks.

Exit fee: A charge imposed when a business terminates a card machine contract early. May be challenged if unfair.

POS terminal: A point-of-sale device used to process card payments. Leases are subject to an 18-month cap for new contracts.

Checklist: what to check on a fee statement or contract

• Check your business size against FOS eligibility thresholds.
• Send a written complaint to your provider and note the date.
• Wait 8 weeks for a final response before escalating.
• Gather all evidence: contract, statements, and correspondence.
• Verify the provider is covered by FOS jurisdiction.
• Calculate your claim and ensure it is within the £455,000 limit.

Each item above maps to a line that must appear in the PSR summary box or the contract schedule, so a missing entry is itself a question for the provider.

Frequently asked questions

Can a limited company complain to the Ombudsman?

Yes, a limited company can complain to the Financial Ombudsman if it qualifies as a micro-enterprise or small business. Micro-enterprises have under 10 staff and turnover under €2 million. Small businesses have under 50 staff and turnover under £6.5 million or balance sheet under £5 million. If your company meets these criteria, you can bring a complaint about your card machine provider. Larger companies are not eligible and must use the courts.

How long does the provider have to respond?

The provider has up to 8 weeks to give a final response to your complaint. The clock starts when you first raise the issue in writing. If they fail to respond within 8 weeks, you can escalate to the Financial Ombudsman. The provider may also send a holding letter, but they must still provide a final response within the 8-week period. If you reject their final response, you can also go to FOS.

Is there a fee to complain to the Ombudsman?

No, complaining to the Financial Ombudsman is free for consumers and eligible businesses. There is no charge for submitting a complaint or for the Ombudsman's investigation. The provider pays a case fee to FOS, but you do not pay anything. This makes FOS a cost-effective alternative to court action. However, you may incur legal costs if you choose to use a solicitor, but that is optional.

What is the maximum award?

From 1 April 2026, the maximum award is £455,000 for acts or omissions on or after 1 April 2019. This limit applies to both micro-enterprises and small businesses. The award covers financial loss, distress, and inconvenience. If your claim exceeds this amount, you may need to go to court to recover the full sum. The Ombudsman's decision is binding on the provider if you accept it.

Can FOS cancel the contract?

Yes, the Financial Ombudsman can direct a provider to cancel or vary a contract if it is found to be unfair. For example, if a card machine contract has an excessively long term or hidden fees, FOS can order the provider to release you from the contract. The Ombudsman can also order compensation for any losses you have suffered. However, FOS will only do this if it is fair and reasonable in the circumstances.