Card Machines for Cafes, Pubs and Restaurants: Fees, Tips and Table Payments

LAST REVIEWED 2026-09-06

What do cafes, pubs and restaurants need from a card machine?

Hospitality venues need card machines that handle high volumes, fast service, and varied payment scenarios. Key requirements include portability for table service, quick chip-and-PIN, contactless, and support for tips. Reliability and battery life are critical during peak hours.

Venues also need to consider integration with EPOS systems for order management and reporting. The choice between countertop, portable, or smart terminals depends on the service style. For example, a cafe may use a countertop terminal, while a restaurant benefits from portable devices for pay-at-table.

Fee structures vary: pay-as-you-go providers charge a percentage per transaction, while fixed-fee providers charge a monthly rental. The table below shows monthly fee costs at different turnovers for major providers. At £2,000 monthly turnover, SumUp charges £33.8, Zettle and Square charge £35 each. At £40,000, SumUp charges £676, Zettle and Square £700. Fixed-fee providers like Tide and Worldpay charge £2.99 and £20.00 respectively, but their percentage rates are not published.

When comparing, consider the total cost including hardware, monthly fees, and transaction rates. Also check settlement times: Zettle settles within minutes to PayPal, while others take next day. For a busy pub, a reliable portable terminal with long battery life is essential.

How do portable and pay-at-table terminals work for hospitality?

Portable terminals allow staff to process payments at the customer's table, reducing queues and improving service. They connect via Wi-Fi or 4G and are ideal for restaurants and pubs. Pay-at-table also enables customers to add tips directly on the terminal.

These devices come in various forms: some are standalone, others integrate with a smart till. For example, Types of Card Machine for UK Businesses: Mobile, Portable, Countertop and Smart Terminals explains the differences. Portable terminals typically cost more than countertop models, but they offer flexibility.

Hardware costs vary: Zettle charges from £29 excl. VAT, Tide from £11 + VAT, Barclaycard £29 + VAT one-off. Monthly fees also differ: Tide charges £2.99 + VAT, Worldpay £20.00 per terminal. Some providers offer free hardware with a contract, but rates may be higher.

When choosing, consider battery life, durability, and connectivity. A portable terminal should last a full shift. Also check if the provider offers a charging dock or spare batteries. For high-volume venues, a reliable device is crucial to avoid lost sales.

How do tips and service charges work on card machines?

Card machines allow customers to add a tip when paying by card. This can be done via a prompt on the terminal or by adjusting the amount. Tips are typically paid to staff separately from the transaction, but the process varies by provider.

Some terminals allow tipping as a percentage or fixed amount. The tip amount is included in the total transaction, and the provider charges a fee on the entire amount, including the tip. This means the business pays a percentage fee on tips, which can add up.

Service charges are different: they are mandatory and added to the bill. These are treated as part of the transaction and subject to the same fees. Businesses must decide whether to include service charges in the card payment or collect them separately.

When comparing providers, check if they support tipping and how tips are settled. Some providers offer automatic tip distribution to staff, while others require manual processing. This can affect staff satisfaction and administrative burden.

How does Amex and a credit-heavy mix affect fees for hospitality?

Amex and premium cards often carry higher interchange fees than standard debit cards. For hospitality, where customers may use Amex for large group bills, this can increase costs. Providers may charge a higher percentage for Amex transactions, or they may include it in a blended rate.

For example, a pay-as-you-go provider might charge 1.69% for all cards, but the actual cost of processing Amex could be higher. Some providers pass on the higher interchange fee as a separate charge. Accepting Amex and Premium Cards in 2026: What UK Businesses Pay provides details.

In a credit-heavy mix, such as a fine-dining restaurant, the average fee may be higher than the published rate. Businesses should estimate their card mix and calculate the effective rate. The table above shows fees at different turnovers, but these assume a standard mix.

To manage costs, businesses can choose a provider that offers transparent Amex rates or negotiate a bespoke rate. Some providers allow surcharging for Amex, but this is subject to rules. It is essential to read the terms and understand how Amex is charged.

What is a worked example of card fees at typical hospitality turnover?

Consider a typical cafe with a monthly card turnover of £10,000. Using the table above, the monthly fee cost at published pay-as-you-go rates would be £169 for SumUp, £175 for Zettle and Square. For a fixed-fee provider like Tide, the monthly fee is £2.99 plus a percentage rate that is not published.

If the cafe processes £10,000 in card payments, the pay-as-you-go cost is significant. However, the actual cost depends on the card mix. If 0.3% of transactions are Amex, the impact is minimal, but if the share is higher, costs rise.

For a pub with £40,000 monthly turnover, SumUp would charge £676, Zettle and Square £700. A fixed-fee provider might be cheaper if the percentage rate is low, but without published rates, it is hard to compare. The table shows that at £2,000, the difference is small: £33.8 vs £35.

Businesses should project their monthly turnover and estimate the effective rate. For high-volume venues, a fixed-fee plan might offer savings, but it requires a contract. Always check for hidden costs like PCI compliance fees or early termination fees.

How do providers compare for hospitality-specific needs?

Providers differ in hardware, fees, and features. SumUp offers a simple pay-as-you-go model with no monthly fee, but hardware costs are not published. Zettle integrates with PayPal and offers fast settlement. Square is popular for its ecosystem, but hardware costs are not published.

Tide offers a low monthly fee of £2.99 + VAT, but its percentage rate is not published. Worldpay charges £20.00 per terminal monthly, which may be suitable for businesses with multiple terminals. Barclaycard offers a promotional period with £0 monthly for 12 months, then £18 + VAT.

For hospitality, consider features like table management, tip prompts, and integration with EPOS. Countertop, Portable and Smart Card Terminals: Fixed-Till Guide 2026 compares these options. Some providers offer dedicated hospitality packages with tailored features.

When choosing, evaluate the total cost of ownership over a year, including hardware, monthly fees, and transaction rates. Also consider the reliability of customer support and settlement times. A provider that offers 24/7 support may be worth a higher fee.

What are the hidden costs in card machine contracts for hospitality?

Beyond transaction fees, there may be hidden costs such as PCI compliance fees, statement fees, and early termination charges. Some providers charge for paper rolls or battery replacements. It is essential to read the contract carefully.

For example, a provider might advertise a low rate but add a monthly service fee. The table above shows published rates, but actual costs may vary. Always ask for a full breakdown of fees before signing.

In hospitality, where staff turnover is high, training costs can also be a factor. A complex terminal may require more training, while a simple one is easier to use. Consider the user experience for both staff and customers.

Check if the provider offers a free trial or a no-obligation quote. Some providers require a minimum contract term, which can be a risk if the business changes. Look for flexibility in contract length and termination options.

How does settlement speed affect cash flow for hospitality?

Settlement speed determines when funds from card transactions reach the business bank account. Faster settlement improves cash flow, which is crucial for hospitality businesses that need to pay suppliers and staff.

Zettle offers settlement within minutes to a PayPal Business account, while others take next business day. SumUp settles next day, as does Barclaycard and Tide. Worldpay settles within 24 hours. The table above shows these differences.

For a busy restaurant, next-day settlement may be sufficient, but same-day settlement can help with cash flow. Some providers offer instant settlement for a fee, but this is not always cost-effective.

Consider the impact of weekends and bank holidays on settlement times. A payment made on Friday may not clear until Monday. This can affect cash flow planning. Choose a provider that offers reliable and predictable settlement.

What should hospitality businesses check in a fee statement?

When reviewing a fee statement, check the transaction rate applied to each card type. Ensure that the rate matches the agreed terms. Look for any additional fees such as monthly rental, PCI compliance, or chargebacks.

Compare the effective rate (total fees divided by total turnover) with the published rate. If the effective rate is higher, investigate why. The table above can help estimate expected fees at different turnovers.

Also check for any minimum monthly fees or inactivity fees. Some providers charge a fee if the business does not process a minimum amount. This can be costly for seasonal businesses.

Finally, verify that tips are processed correctly and that the fee on tips is not excessive. Some providers charge the same rate on tips as on sales, which can be a significant cost for hospitality.

How to choose between pay-as-you-go and fixed-fee card machines?

Pay-as-you-go providers charge a percentage per transaction, with no monthly fee. This is suitable for low-volume businesses. Fixed-fee providers charge a monthly rental, which can be cost-effective for high-volume businesses.

The table above shows that at £2,000 monthly turnover, pay-as-you-go costs £33.8 to £35, while fixed-fee providers charge £2.99 or £20.00. At £40,000, pay-as-you-go costs £676 to £700, while fixed-fee remains the same.

However, fixed-fee providers often have a percentage rate that is not published, so the total cost may be higher. It is essential to get a quote and calculate the effective rate.

For a cafe with low turnover, pay-as-you-go may be cheaper. For a busy restaurant with high turnover, a fixed-fee plan could save money. Consider the average transaction value and card mix when making a decision.

Glossary: card payment terms explained

Pay-as-you-go: A pricing model where the business pays a percentage fee per transaction, with no monthly rental. Rates typically range from 1.69% to 1.75%.

Fixed-fee: A pricing model where the business pays a monthly rental for the terminal, plus a transaction rate that may be lower. Examples include Tide at £2.99 and Worldpay at £20.00.

Interchange fee: A fee paid by the acquirer to the card issuer for each transaction. It varies by card type, with Amex and premium cards often higher.

Settlement: The process of transferring funds from card transactions to the business bank account. It can take from minutes to next business day.

PCI compliance: Payment Card Industry Data Security Standard requirements that businesses must meet to handle card data securely. Non-compliance can incur fines.

Chargeback: A dispute where a customer challenges a transaction and the funds are reversed. Chargeback fees may apply.

Frequently asked questions

What is the best card machine for a cafe?

The best card machine for a cafe depends on turnover and service style. For a low-volume cafe, a pay-as-you-go provider like SumUp or Zettle may be cost-effective, with rates from 1.69% to 1.75%. For higher volumes, a fixed-fee provider like Tide or Worldpay could be cheaper, but their rates are not published. Consider a countertop terminal for counter service, or a portable one if you offer table service. Also check settlement times and hardware costs. Zettle charges from £29 for hardware, while Tide charges from £11. Always compare total costs including transaction fees.

How do tips work on card machines?

Card machines allow customers to add a tip when paying. The tip is included in the total transaction, and the provider charges a fee on the entire amount, including the tip. Some terminals allow customers to choose a percentage or fixed amount. Tips are typically paid to staff separately, but the process varies by provider. Some providers offer automatic tip distribution, while others require manual processing. Businesses should check how tips are settled and whether there are any additional fees for tip processing.

Do restaurants pay more in card fees?

Restaurants may pay more in card fees due to higher average transaction values and a higher share of credit and Amex cards. Credit cards carry higher interchange fees than debit cards. For example, a pay-as-you-go rate of 1.75% applies to all transactions, but the actual cost of processing an Amex card may be higher. If a restaurant has a credit-heavy mix, the effective rate could be higher than the published rate. Additionally, tips add to the transaction amount, increasing the fee. Restaurants should estimate their card mix and calculate the effective rate to understand their true costs.

Should I use pay-at-table or pay-at-counter?

Pay-at-table is beneficial for full-service restaurants as it improves customer experience and increases tips. It allows customers to pay without leaving the table, and they can add a tip directly on the terminal. Pay-at-counter is simpler and may be sufficient for cafes and quick-service venues. Portable terminals for pay-at-table cost more, but they can increase average spend and tips. Consider your service style and customer expectations. For a pub with table service, pay-at-table may be worth the investment. For a counter-service cafe, a countertop terminal is more cost-effective.

Is a mobile reader enough for a pub?

A mobile reader can be sufficient for a pub with low to moderate card volumes, especially if it is used for occasional table service or events. Mobile readers are portable and often have lower upfront costs. However, they may have battery limitations and slower processing speeds. For a busy pub with high volumes, a dedicated portable terminal with a longer battery life and faster chip-and-PIN may be more reliable. Consider the number of transactions per day and the need for integration with your EPOS. Some mobile readers, like Zettle, offer fast settlement, which can help cash flow.