Card Machines for Taxis and Mobile Trades: 4G Readers and On-Site Payment

LAST REVIEWED 2026-09-06

Taxi card acceptance rules

In London, the requirement for black cabs to accept card payments came into force in October 2016. Transport for London (TfL) mandated that all licensed black cabs must have a card payment terminal, ensuring passengers can pay by contactless or chip and PIN. This rule applies to all journeys, including those hailed on the street. Outside London, there is no universal legal obligation, but many local licensing authorities have introduced similar conditions. For private hire vehicles (minicabs), rules vary by council, but card acceptance is increasingly common as a condition of licence renewal.

For taxi drivers, the practical implication is that a reliable, portable card machine is essential. The device must be able to process payments quickly and securely, often in poor weather or low signal areas. Many drivers opt for 4G-enabled readers that do not rely on Wi-Fi, ensuring connectivity on the move. The cost of acceptance includes transaction fees, which are influenced by interchange caps set under the Interchange Fee Regulation (IFR). For consumer debit cards, the cap is 0.2% of the transaction value, and for consumer credit cards, it is 0.3%. These caps apply to the fees paid by the acquirer to the card issuer, but they indirectly affect the overall merchant service charge.

When choosing a card machine for a taxi, drivers should consider the terminal's battery life, durability, and whether it supports contactless payments, which are popular for quick fares. Some providers offer dedicated taxi packages with integrated receipt printing or driver apps. It is also important to check the contract terms, as the Payment Systems Regulator (PSR) has limited initial terminal rental contracts to a maximum of 18 months, effective from July 2023. This gives drivers more flexibility to switch providers if they are dissatisfied.

4G and offline readers

For mobile tradespeople and taxi drivers, connectivity is a major concern. 4G card readers use a built-in SIM card to connect to the mobile network, allowing payments to be processed anywhere with signal coverage. This is ideal for tradespeople working on building sites, in remote locations, or at customers' homes where Wi-Fi may be unavailable. Unlike Bluetooth readers that rely on a smartphone app, 4G readers operate independently, reducing the risk of connection failures.

Some 4G readers also offer offline mode, which allows transactions to be authorised even when there is no signal. In offline mode, the reader stores the transaction data and uploads it later when connectivity is restored. This feature is particularly useful for taxi drivers in areas with poor coverage, such as tunnels or underground car parks. However, offline transactions may carry a higher risk of fraud, so providers often set limits on the number or value of offline transactions.

When selecting a 4G reader, consider the data plan included. Some providers bundle a data allowance with the monthly fee, while others require a separate SIM. It is essential to check whether the data allowance is sufficient for your transaction volume. For example, a taxi driver processing hundreds of transactions per month will need more data than a plumber who takes a few payments a day. The cost of data is not published by all providers, so it is advisable to compare packages.

Battery life is another critical factor. A reader that runs out of power during a busy shift can lose sales. Look for devices with long battery life or the ability to charge quickly. Some readers also have a built-in printer, which is useful for providing receipts to customers who require them.

Payment links and invoices for trades

For tradespeople such as plumbers, electricians, and builders, payment links offer a flexible alternative to physical card readers. A payment link is a secure URL that can be sent to a customer via email, SMS, or messaging app. The customer clicks the link and enters their card details to pay. This method is particularly useful for sending invoices after a job is completed, allowing the customer to pay at their convenience.

Payment links can be generated from a smartphone or computer, and many card machine providers include this feature as part of their service. For example, a plumber who has finished a repair can send a link to the customer's email with the invoice amount. The customer can pay immediately or later, and the funds are typically settled into the business bank account within one to two working days.

One advantage of payment links is that they do not require the customer to be present, which is helpful for remote work or when the customer is not at the property. They also reduce the need for cash handling and chasing payments. However, payment links may incur higher transaction fees than in-person payments, as they are classified as card-not-present transactions. The interchange fees for online payments are not capped at the same level as in-person transactions, but the caps for consumer debit and credit cards still apply at 0.2% and 0.3% respectively, though other fees may vary.

For tradespeople who issue invoices, integrating payment links into invoicing software can streamline the process. Some providers offer APIs or integrations with accounting tools, allowing invoices to include a 'Pay Now' button. This reduces administrative time and improves cash flow.

Deposits and part payments

Many tradespeople require a deposit before starting work, to cover materials or secure a booking. Card machines and payment links can facilitate deposit collection. For example, a builder might ask for a 20% deposit to order materials. Using a payment link, the builder can send a request for the deposit amount, and the customer pays by card. The remaining balance can be collected upon completion.

Some card readers allow for partial authorisation, where the full amount is authorised but only a portion is captured. This is less common for small businesses. More often, tradespeople use separate transactions: one for the deposit and one for the final payment. This is straightforward with payment links, as each link can be for a specific amount.

When taking deposits, it is important to clearly communicate the terms, including whether the deposit is refundable. Card payment providers may hold funds for a short period, but deposits are usually settled quickly. For larger projects, staged payments can be arranged, with each stage invoiced separately.

The ability to take deposits by card also protects the tradesperson against non-payment. If a customer cancels at the last minute, the deposit can be retained as compensation, subject to the terms agreed. However, it is essential to comply with consumer protection laws, such as the Consumer Contracts Regulations, which require clear information about cancellation rights.

Worked example

Consider a self-employed electrician who visits customers' homes to carry out repairs. The electrician uses a 4G card reader to take payments on the spot. For a job that costs £150, the customer pays by contactless debit card. The interchange fee for the transaction is capped at 0.2%, which amounts to £0.30. However, the merchant service charge (MSC) charged by the provider is typically higher, often around 1.5% to 2% for small businesses. In this example, if the provider charges 1.5%, the fee would be £2.25, leaving the electrician with £147.75.

For a larger job, such as a full rewire costing £2,000, the electrician might require a 25% deposit of £500. Using a payment link, the customer pays the deposit online. The fee for this card-not-present transaction might be higher, say 2%, resulting in a fee of £10. The remaining £1,500 is collected upon completion using the 4G reader, with a fee of £22.50 at 1.5%. Total fees for the job would be £32.50, leaving £1,967.50.

These figures are illustrative; actual fees vary by provider and card type. It is essential to compare the total cost of acceptance, including monthly fees, terminal rental, and transaction charges. The PSR's cap on terminal rental contracts at 18 months means that businesses are not locked in for long periods, allowing them to switch if they find a better deal.

For a taxi driver, the average fare might be £10. With a typical MSC of 1.5%, the fee would be £0.15 per transaction. If the driver processes 50 card payments per day, that amounts to £7.50 in fees daily, or £225 per month. This cost must be weighed against the benefit of accepting cards, which can increase business and customer satisfaction.

Provider fit

Choosing the right card machine provider depends on the specific needs of the business. For taxi drivers, a provider that offers a rugged, 4G-enabled reader with a long battery life and optional printer is ideal. Some providers offer dedicated taxi packages with competitive rates and no hidden fees. It is also important to consider the provider's settlement times, as taxi drivers often need quick access to funds.

For tradespeople, a provider that offers both a physical reader and payment links is beneficial. This allows flexibility to take payments on-site or remotely. Providers that integrate with invoicing software can save time. Additionally, consider the cost structure: some providers charge a flat monthly fee plus a low transaction rate, while others have no monthly fee but higher transaction charges. For low-volume users, a pay-as-you-go model may be more cost-effective.

The table below summarises the typical needs for different trades and the type of reader that suits them, along with fee models and sources for further information.

When comparing providers, look for transparent pricing, no hidden fees, and good customer support. The PSR's regulations, such as the 18-month cap on terminal contracts, give businesses more freedom to switch. Always read the terms and conditions carefully.

Frequently asked questions

Do taxis have to take cards?

In London, all licensed black cabs have been required to accept card payments since October 2016, under Transport for London (TfL) rules. This means drivers must have a working card terminal and accept contactless or chip and PIN payments. Outside London, there is no national legal requirement, but many local councils impose similar conditions on taxi licences. Private hire vehicles may also be subject to local rules. It is advisable for taxi drivers to check with their licensing authority to understand specific obligations.

Best card reader for a plumber?

For a plumber, the best card reader depends on the volume of transactions and the need for mobility. A Bluetooth reader that connects to a smartphone is often sufficient for occasional payments, as it is low-cost and portable. However, if the plumber works in areas with poor mobile signal, a 4G reader with offline capability may be more reliable. Consider factors such as battery life, durability, and whether the provider offers payment links for invoicing. Compare fees and contract terms, and look for a provider with no long-term commitment.

Can I send a payment link instead?

Yes, many card machine providers offer payment links that allow you to send a secure URL to a customer via email or SMS. The customer clicks the link and pays by card online. This is useful for sending invoices or collecting deposits when the customer is not present. Payment links are typically subject to higher transaction fees than in-person payments, as they are card-not-present transactions. However, they provide convenience and can help speed up payment collection. Check with your provider for specific fees and features.

Do 4G readers include data?

Some 4G card readers come with a built-in data plan included in the monthly fee, while others require you to purchase a separate SIM card or data package. The amount of data included varies by provider and plan. For example, a basic plan might include 100 MB per month, which is sufficient for a few hundred transactions. If you process a high volume of payments, you may need a larger data allowance. Always check the data allowance and any additional costs for exceeding it.

Can I take a deposit by card?

Yes, you can take a deposit by card using a physical card reader or a payment link. For in-person deposits, you can simply charge the card for the deposit amount. For remote deposits, send a payment link for the specific deposit amount. This is common for tradespeople who require a deposit before starting work. Ensure you have clear terms regarding refunds and cancellations. Card payment providers typically settle deposits quickly, but there may be a short holding period depending on the provider.