UK Card Machine Providers Compared: Fees, Contracts and Settlement Times

LAST REVIEWED 2026-09-05

How the table was built

This master table was compiled on a single day by visiting the public pricing pages of 15 card machine providers operating in the United Kingdom. Each provider was selected on the basis of market presence and published pricing transparency. The data captured includes the headline transaction rate, monthly fee, minimum contract length, typical settlement time, hardware cost, and the type of FCA authorisation held.

All figures are as published on the date of the fetch. Where a provider does not publish a specific figure, the entry reads ‘not published’. The source URL for each provider is listed in the final column, along with the date of access. Readers should note that pricing pages are frequently updated, and the figures shown here may have changed since the fetch date.

The table is intended as a starting point for comparison, not as a definitive guide. Providers may offer bespoke pricing based on turnover, card volumes, and business type. The headline rate is often negotiable, and the true cost of acceptance depends on the mix of debit and credit cards, as well as the average transaction value.

Pay-as-you-go readers

Pay-as-you-go card readers are popular with small businesses and sole traders because they typically have no monthly fee and no long-term contract. The provider charges a higher transaction rate, often around 1.5% to 1.75%, to cover the cost of the hardware and service. These readers connect to a smartphone or tablet via Bluetooth and are suitable for low-volume sellers.

In this category, providers such as SumUp, iZettle, and Zettle by PayPal offer a simple pricing structure: a flat rate per transaction, with no hidden charges. Hardware costs are either paid upfront or deducted from future transactions. Settlement is usually the next working day, although some providers offer instant settlement for a small fee.

The main advantage is flexibility: there is no minimum usage requirement, and the business can stop using the service at any time. The main disadvantage is the higher transaction rate, which can become expensive for businesses processing large volumes. For a business turning over more than a few thousand pounds per month, a contract-based acquirer may offer lower rates.

Contract acquirers

Contract acquirers, such as Worldpay, Barclaycard, and Lloyds Cardnet, typically offer lower transaction rates in exchange for a fixed monthly fee and a minimum contract term. These providers are suited to established businesses with predictable card volumes. The monthly fee covers account maintenance, reporting, and customer support.

Contract lengths vary, but the Payment Systems Regulator (PSR) has capped the maximum initial term for POS terminal lease or rental contracts at 18 months, effective from July 2023. This means providers cannot lock a business into a terminal rental agreement for longer than 18 months, although the acquiring contract itself may be longer.

Headline rates for contract acquirers often start at around 0.25% for debit cards and 0.3% for credit cards, but these are subject to interchange fees and scheme fees. The actual rate paid depends on the card type and the merchant category code. Businesses should compare the total cost, including monthly fees, terminal rental, and transaction charges, rather than focusing solely on the headline rate.

Bank-owned acquirers

Bank-owned acquirers, including Barclaycard, Lloyds Cardnet, and NatWest, offer card processing as part of a broader banking relationship. They often provide integrated solutions that link directly to a business current account, simplifying reconciliation. These providers may offer preferential rates to existing bank customers, but they also have a reputation for higher monthly fees and less transparent pricing.

For example, Barclaycard publishes a standard rate of 0.3% for consumer credit cards and 0.2% for consumer debit cards, in line with the interchange caps set by the Interchange Fee Regulation (IFR). However, the actual rate charged to the merchant is higher, as it includes the acquirer's margin and scheme fees.

Bank-owned acquirers are typically regulated by the Financial Conduct Authority (FCA) as authorised payment institutions or as agents of an authorised institution. Their contracts often include a notice period and may require a minimum term of 12 to 36 months. Businesses should check whether the contract auto-renews and what the exit fees are.

Challenger and app-led providers

Challenger and app-led providers, such as Stripe, Square, and Dojo, have disrupted the card machine market by offering transparent pricing and developer-friendly platforms. These providers often have no monthly fee and no minimum contract, making them attractive to online businesses and startups. They typically charge a flat rate per transaction, which is published on their website.

Stripe, for example, charges 1.5% for standard UK card payments, with no monthly fee. Square offers a similar model, with a rate of 1.75% for card-present transactions. Dojo, on the other hand, offers a contract-based service with a monthly fee, but it includes a free terminal and next-day settlement.

These providers are often authorised by the FCA as electronic money institutions or payment institutions. They may also offer additional services such as invoicing, e-commerce payment gateways, and point-of-sale software. The main advantage is flexibility and ease of integration, but businesses should be aware that some providers may hold funds for a longer period before settlement, depending on the risk profile.

What the headline rate does not tell you

The headline rate is the percentage charged per transaction, but it is not the only cost. Providers also charge a monthly fee, a terminal rental or purchase cost, and sometimes a setup fee. In addition, there may be charges for chargebacks, refunds, and PCI compliance. The headline rate often applies only to consumer debit cards, while credit cards and commercial cards attract higher rates.

Interchange fees are set by the card schemes and are capped by the IFR at 0.2% for consumer debit and 0.3% for consumer credit. However, the acquirer adds its own margin, which can vary significantly. Some providers offer a blended rate, which is a single percentage for all card types, while others use a differential pricing model.

It is also important to consider settlement times. Most providers offer next-day settlement, but some take two or three days. Faster settlement may come at a cost. The PSR has introduced measures to improve transparency, including summary boxes and online quotation tools, which were mandated from July 2023. These tools help businesses compare the total cost of acceptance.

Regulatory status of each provider

All card machine providers must be authorised or registered with the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011. The FCA register provides details of each firm's authorisation type, which can be a full authorisation as a payment institution or an electronic money institution, or a smaller payment institution registration.

Some providers operate as agents of an authorised institution, meaning they are not directly authorised but act under the supervision of a principal. For example, a provider might be an appointed representative of a bank that holds the necessary permissions. Consumers and businesses can check the FCA register to confirm the regulatory status of any provider.

The table below lists the FCA authorisation type for each of the 15 providers, as recorded on the FCA register on the date of the fetch. It is important to note that authorisation status can change, and businesses should verify the current status before entering into a contract. The FCA also provides guidance on the scope of payment services and e-money regulations.

Frequently asked questions

Which card machine has no monthly fee?

Several providers offer card machines with no monthly fee, including SumUp, iZettle, and Square. These pay-as-you-go providers charge a higher transaction rate instead, typically around 1.5% to 1.75%. They are suitable for low-volume businesses. However, some contract-based providers may also offer a no-monthly-fee option, but they often require a minimum transaction volume or a longer contract. Always check the terms and conditions, as 'no monthly fee' may be conditional.

Which providers pay out next day?

Most card machine providers offer next-day settlement as standard, including Worldpay, Barclaycard, and Stripe. Some providers, such as Square and SumUp, also offer next-day settlement, but they may charge a small fee for faster payouts. The settlement time is typically stated in the provider's terms and conditions. It is important to note that settlement time refers to when funds are transferred to your business bank account, not when the transaction is authorised. Some providers may hold funds for longer periods if they consider the business to be high risk.

Are all card machine providers FCA regulated?

Yes, all providers of card machine services in the UK must be authorised or registered with the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011. This includes both contract-based acquirers and pay-as-you-go providers. The FCA register lists each firm's authorisation type, which can be a full authorisation or a smaller payment institution registration. Some providers may operate as agents of an authorised institution, but they are still subject to FCA oversight. Businesses should verify a provider's regulatory status before signing a contract.

Is a bank card machine cheaper?

Bank-owned card machine providers, such as Barclaycard and Lloyds Cardnet, often have higher monthly fees and less transparent pricing compared to challenger providers. However, they may offer lower transaction rates for high-volume businesses, especially if you have an existing banking relationship. The total cost depends on your transaction volume, average ticket size, and card mix. It is advisable to compare the total cost of acceptance, including monthly fees, terminal rental, and transaction charges, rather than just the headline rate. The PSR's market review found that some small businesses pay more than necessary due to a lack of comparison.

How often do providers change published rates?

Providers can change their published rates at any time, but most review their pricing annually or when there is a change in interchange fees or scheme fees. The FCA requires providers to notify customers of any changes to fees and charges in advance. The PSR's remedies, effective from July 2023, require providers to display summary boxes and offer online quotation tools, which help businesses see current rates. However, rates can change between the date of publication and the date you sign a contract. It is always wise to confirm the current rate with the provider before committing.