Business payments · 30 guides · primary sources Every guide on UK card machine fees, contracts, providers and terminals in one place. No affiliate links, no lead forms, no commission from any provider named. |
| Business Payments Hub |
UK interchange on consumer debit is capped at 0.2% and credit at 0.3% under the Interchange Fee Regulation, yet SMEs typically pay 1.5% to 2% headline because scheme and acquirer margin sit on top. Explain that gap and point to fees, contracts, providers, machine types.
Card machine costs in the UK are built from interchange (capped at 0.2% debit, 0.3% credit), scheme fees, and acquirer margin, so headline rates often reach 1.69% to 1.75%.
KEY FACTS
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Editor's note Card machine pricing is one of the least transparent costs a small business carries. This hub sets out what the law caps, what the regulator requires, what each provider publishes and where the figures stop. Where a provider does not publish a number, the guides say so rather than guess. |
LAST REVIEWED 2026-09-06
What does a business card machine cost in the UK?
In the UK, a business card machine typically costs between 1.69% and 1.75% per transaction for pay-as-you-go providers, with no monthly fee. Some providers charge a monthly rental from £2.99 to £20.00, plus a one-off hardware cost from £29. The total cost depends on your sales volume, machine type, and contract length.
For example, SumUp publishes a rate of 1.69%, while Zettle and Square both list 1.75%. These rates are all-inclusive, meaning they cover interchange, scheme fees, and the acquirer margin. The difference is small for low volumes but becomes significant as sales grow.
Providers with custom pricing, such as Barclaycard or Worldpay, often quote lower rates for higher volumes, but they may add monthly fees or contract terms. Always compare the total cost of ownership, including hardware, monthly fees, and transaction rates, not just the headline percentage.
What are the three parts of every card fee?
Every card payment fee in the UK is composed of three parts: interchange, scheme fees, and the acquirer margin. Interchange is paid to the card issuer and is regulated, while scheme fees go to Visa or Mastercard, and the acquirer margin is the provider's profit.
The table below shows the three components, who receives them, and whether they are regulated. Interchange is capped at 0.2% for consumer debit and 0.3% for consumer credit under the Interchange Fee Regulation (IFR). Scheme fees are not capped, and the acquirer margin is the remainder of the headline rate, typically 1.69% to 1.75% for pay-as-you-go providers.
Understanding this breakdown helps you see why rates vary and why commercial cards cost more, as their interchange is uncapped.
| Component | Who receives it | Regulated? | Source |
|---|---|---|---|
| Interchange | Card issuer | Capped at 0.2% consumer debit, 0.3% consumer credit; commercial cards uncapped | IFR |
| Scheme fee | Visa or Mastercard | Not capped; set by the scheme | PSR market review |
| Acquirer margin | Card machine provider | The remainder of the headline rate (1.69% to 1.75% published PAYG rates) | Provider pricing pages |
What are the contract rules since the PSR remedies?
Since the Payment Systems Regulator (PSR) market review, card machine contracts in the UK are limited to 18 months for new contracts, and exit fees are banned after that period. This means you cannot be locked in for longer than 18 months without the option to leave penalty-free.
For example, Barclaycard offers an 18-month contract, while takepayments uses a 12-month term. Providers like SumUp, Zettle, and Square operate with no contract at all, giving you flexibility. The PSR rules also require providers to send renewal reminders and make it easier to switch.
When reviewing a contract, check the initial term, any notice period, and whether there are exit fees. After the minimum term, you should be able to cancel without charge. If a provider tries to impose a longer term or exit fee, it may be in breach of the PSR remedies. Always read the terms carefully before signing.
What types of card machines are available?
There are several types of card machines: countertop terminals, portable terminals, mobile card readers, and smart terminals. Countertop terminals are for fixed till points, portable ones work within a store, mobile readers connect to a phone via Bluetooth, and smart terminals run apps and accept various payments.
Mobile readers are popular with small businesses due to low upfront costs, often from £29 for hardware. Countertop terminals may be provided free with a contract, but monthly fees apply. For example, Worldpay charges £20.00 per terminal monthly, while Barclaycard charges £29 one-off for hardware.
Your choice depends on where you sell: if you are a market stall, a mobile reader is ideal; if you have a shop, a countertop terminal may be more durable. Smart terminals offer additional features like inventory management but cost more. Consider your sales environment and volume to decide which type suits your business.
Which providers are available in the UK?
Major card machine providers in the UK include SumUp, Zettle, Square, Tide, takepayments, Barclaycard, Worldpay, Dojo, Teya, and Elavon. Each offers different pricing models, contracts, and hardware options.
The table below compares providers based on published rates. SumUp charges 1.69% with no monthly fee, while Zettle and Square charge 1.75%. Tide has a monthly fee of £2.99 plus VAT, and Barclaycard offers a free plan for 12 months then £18 monthly. Worldpay charges £20.00 per terminal monthly.
Some providers, like Dojo, Teya, and Elavon, do not publish their rates, so you must request a quote. When comparing, look at the total cost for your expected volume, including any monthly fees and hardware costs. Also consider settlement times: Zettle settles within minutes to PayPal, while others take next day.
Which card machine suits which business?
The best card machine for your business depends on your sales volume, mobility needs, and budget. For very small businesses or occasional sellers, a pay-as-you-go mobile reader with no monthly fee is often the most cost-effective.
For example, a sole trader selling at markets might choose SumUp at 1.69% or Zettle at 1.75%, with no fixed costs. A retail shop with high volume might benefit from a countertop terminal with a lower transaction rate, even if it has a monthly fee. Barclaycard's 18-month contract might suit a business that wants a stable rate and support.
Consider your average transaction value and monthly turnover. For higher volumes, negotiate a bespoke rate with providers like Worldpay or Elavon.
| Provider | Published in-person rate | Monthly fee | Contract | Settlement | Hardware | Source and date |
|---|---|---|---|---|---|---|
| SumUp | 1.69% | £0 | no contract | next day | not published | source 2026-09-06 |
| Zettle | 1.75% | £0 | no contract | within minutes to PayPal Business account | from £29 excl. VAT | source 2026-09-06 |
| Square | 1.75% | £0 | no contract | not published | not published | source 2026-09-06 |
| Tide | not published | £2.99 + VAT | not published | next business day | from £11 + VAT | source 2026-09-06 |
| takepayments | not published | not published | 12 months | next working day | not published | source 2026-09-06 |
| Barclaycard | customised, not published | £0 for 12 months, then £18 + VAT | 18 months | next day | £29 + VAT one-off | source 2026-09-06 |
| Worldpay | not published | £20.00 per terminal | not published | 24 hours | not published | source 2026-09-06 |
| Dojo | not published | not published | not published | not published | not published | source 2026-09-06 |
| Teya | not published | not published | not published | not published | not published | source 2026-09-06 |
| Elavon | not published | not published | not published | not published | not published | source 2026-09-06 |
Disclaimer. This guide is editorial information drawn from primary sources. It is not financial, legal or tax advice and does not recommend any provider. Figures are those published by the named sources on the review date and may change. Kael Tripton Ltd receives no commission, referral fee or lead payment from any provider named on this page. |
Frequently asked questions
How much do card machines cost per transaction in the UK?
In the UK, card machine transaction fees typically range from 1.69% to 1.75% for pay-as-you-go providers. For example, SumUp charges 1.69%, while Zettle and Square charge 1.75%. These rates are all-inclusive, covering interchange, scheme fees, and acquirer margin. Some providers offer lower rates for higher volumes, but they may require a monthly fee or contract. Always compare the total cost, including any fixed fees, to find the most cost-effective option for your business.
Is a card machine contract limited to 18 months?
Yes, under the Payment Systems Regulator (PSR) remedies, new card machine contracts in the UK are limited to 18 months. This means providers cannot lock you into a contract longer than 18 months. After the minimum term, you can leave without paying exit fees. Some providers, like SumUp, Zettle, and Square, offer no contract at all, giving you flexibility. Always check the contract length and any notice period before signing.
Do sole traders need a business bank account for a card reader?
No, sole traders do not need a business bank account to use a card reader. Many providers, such as SumUp and Zettle, allow you to settle funds into a personal bank account. However, some providers may require a business account, especially if you have a limited company. It is best to check with the provider. For example, Zettle settles to a PayPal Business account, which can be set up with a personal email. Always confirm the settlement options before choosing a provider.
What is the difference between an acquirer and a card reader brand?
An acquirer is a financial institution that processes card payments on behalf of merchants, while a card reader brand is the company that provides the physical device and customer-facing services. Some brands, like SumUp and Square, are also acquirers, meaning they handle the entire payment process. Others, like Zettle, partner with acquirers (e.g., PayPal) to process transactions. Understanding this helps you know who to contact for support and how your funds are handled.
Can a business refuse card payments in the UK?
Yes, businesses in the UK are not legally required to accept card payments. You can choose to accept only cash or other payment methods. However, refusing cards may put you at a competitive disadvantage, as many customers expect to pay by card. Some businesses may set a minimum spend for card payments, but this is not allowed under card scheme rules. If you do accept cards, you must comply with the terms of your provider.
