Card Readers With No Monthly Fee: UK Options and What They Really Cost

LAST REVIEWED 2026-09-06

How does pay-as-you-go pricing work for card readers?

Pay-as-you-go (PAYG) pricing means you pay a percentage of each transaction instead of a fixed monthly fee. The rate is published per provider. For example, SumUp charges 1.69% per transaction, while Zettle and Square charge 1.75%. There is no monthly fee, but you may pay for hardware separately.

With PAYG, the cost scales with your sales. If you process £2,000 a month, SumUp costs £33.8, Zettle and Square cost £35. At £10,000, SumUp costs £169, Zettle and Square cost £175. At £40,000, SumUp costs £676, Zettle and Square cost £700. The table below shows these comparisons.

PAYG is often chosen by low-volume or seasonal businesses because there is no fixed cost. However, the percentage rate can be higher than fixed-fee plans for high turnover. It is important to calculate your monthly fees based on your average card takings.

Check the provider's pricing page for the exact rate and any additional charges, such as chargebacks or refunds. Some providers may charge a fixed fee per transaction, but the ones listed here use a simple percentage.

Which UK card readers have no monthly fee in 2026?

In 2026, the main UK card readers with no monthly fee are SumUp, Zettle, and Square. SumUp publishes a rate of 1.69%, while Zettle and Square both publish 1.75%. These providers do not charge a monthly fee and do not require a contract.

Other providers like Tide, Worldpay, and Barclaycard have monthly fees or contract terms. Tide charges £2.99 + VAT per month, Worldpay charges £20.00 per terminal, and Barclaycard offers £0 for 12 months then £18 + VAT. These are not pay-as-you-go options.

The table below summarises the published rates and fees for each provider. SumUp's rate of 1.69% is the lowest among those with no monthly fee. Zettle and Square are slightly higher at 1.75%.

When comparing, consider not only the rate but also hardware costs and settlement times. Zettle charges from £29 for its reader, while SumUp and Square do not publish hardware prices. The true cost includes both the transaction fee and any upfront hardware purchase.

What are the hardware costs for no-monthly-fee card readers?

Hardware costs vary among no-monthly-fee providers. Zettle publishes a reader price from £29 excl. VAT. SumUp and Square do not publish hardware costs on their pricing pages, so you need to check their websites or contact them. Some providers may offer free hardware with certain conditions, but that is not standard.

For example, Barclaycard charges £29 + VAT for hardware, but it has a monthly fee after 12 months. Zettle's £29 reader is a one-off cost, and there is no monthly fee. SumUp's hardware cost is not published, so it is unclear if it is higher or lower.

When budgeting, add the hardware cost to your first-year fees.

Check if the reader is included in the price or if you need to buy it separately. Some providers offer refurbished readers at a discount. Always compare the total cost of ownership over a year.

When does pay-as-you-go become expensive compared to fixed-fee plans?

Pay-as-you-go becomes expensive when your monthly card turnover is high. For example, at £40,000 a month, SumUp charges £676, Zettle and Square charge £700. In contrast, Tide charges a fixed £2.99 + VAT per month, but its transaction rate is not published. Worldpay charges £20.00 per terminal, also with an unpublished rate.

If your turnover is £40,000, a fixed-fee plan might be cheaper if the transaction rate is lower. However, without published rates for Tide and Worldpay, you cannot compare directly. The table below shows the monthly fee costs at different turnover levels.

For low turnover, PAYG is cost-effective. At £2,000 a month, SumUp costs £33.8, which is less than Worldpay's £20.00 plus a transaction rate. But at £40,000, the percentage fees add up. A fixed-fee plan with a lower rate could save money.

To decide, estimate your average monthly card sales. If you process more than £10,000 regularly, consider contacting providers for custom quotes. The break-even point depends on the unpublished rates.

How fast do pay-as-you-go card readers pay out?

Settlement times vary by provider. SumUp pays out the next day. Zettle pays out within minutes to a PayPal Business account. Square does not publish its settlement time. Tide pays out the next business day, but it has a monthly fee. Worldpay pays out within 24 hours, but it charges a monthly fee.

For businesses that need fast access to cash, Zettle's instant payout to PayPal is attractive. SumUp's next-day payout is standard. Square's unpublished time may be similar, but you need to check.

Payout speed does not affect the transaction fee, but it can impact cash flow. If you rely on daily sales to cover expenses, a faster payout is beneficial. Zettle's within-minutes service is the fastest among the no-monthly-fee providers.

Note that some providers may charge a fee for faster payouts, but Zettle's is included. Always read the terms to see if there are any charges for expedited settlements.

Who are pay-as-you-go card readers best suited for?

Pay-as-you-go card readers suit businesses with low or variable monthly card turnover. For example, a market stall processing £2,000 a month would pay £33.8 with SumUp, which is lower than a fixed monthly fee. Seasonal businesses also benefit because they only pay when they make sales.

Startups and side businesses that are testing the market may prefer no monthly commitment. SumUp, Zettle, and Square have no contract, so you can stop using them at any time. This flexibility is valuable for businesses with uncertain sales.

However, high-volume businesses may find PAYG expensive. At £40,000 a month, the fees are £676 or more. Such businesses might negotiate a lower rate with a traditional provider like Barclaycard or Worldpay, but those often require contracts.

The table below compares monthly fees at different turnover levels. It shows that PAYG is cost-effective up to a point. Beyond that, a fixed-fee plan with a lower rate could be cheaper, but you need to get a quote.

What hidden fees should you watch out for with no-monthly-fee readers?

Even with no monthly fee, there can be hidden costs. Chargebacks, refunds, and cross-border fees may apply. Some providers charge a fee for each chargeback, which is not always published. Check the terms and conditions for any additional charges.

For example, SumUp's rate is 1.69%, but if you accept international cards, the rate may be higher. Zettle and Square may also have different rates for keyed-in transactions or manual entry. These are not always shown on the main pricing page.

Hardware costs are another potential hidden fee. Zettle charges from £29, but SumUp and Square do not publish their hardware prices. You might need to buy a reader separately, adding to your initial outlay.

Always read the full pricing document. Look for fees on refunds, chargebacks, and account inactivity. Some providers may charge a monthly fee if you do not process a minimum amount, but the ones listed here do not.

Do you need a contract with a no-monthly-fee card reader?

No, providers like SumUp, Zettle, and Square do not require a contract. You can use their services on a month-to-month basis and stop at any time. This is a key advantage over traditional providers like takepayments, which requires a 12-month contract, and Barclaycard, which has an 18-month term.

Without a contract, you are not locked in. If you find a better rate elsewhere, you can switch without penalty. However, you may need to return or pay off any hardware you purchased.

Zettle's reader costs from £29, so if you leave, you have already paid for it. SumUp and Square do not publish hardware costs, but you likely own the reader after purchase.

Check if there are any early termination fees, even without a contract. Some providers may charge a fee if you cancel within a certain period, but the no-monthly-fee providers typically do not.

Can you get a free card reader with no monthly fee?

Some providers offer free card readers, but often with conditions. For example, Barclaycard offers a reader for £29 + VAT, but it has a monthly fee after 12 months. Zettle charges from £29 for its reader, which is not free. SumUp and Square do not publish hardware costs, so it is unclear if they ever offer free readers.

In the past, some providers have run promotions where the reader is free if you process a certain volume. However, as of 2026, no provider in the table above lists a free reader with no monthly fee. Zettle's £29 is the lowest published hardware cost.

If you want a free reader, you might need to sign a contract or pay a higher transaction rate. For example, takepayments does not publish hardware costs, but it requires a 12-month contract. The trade-off is between upfront cost and ongoing commitment.

Always read the small print. A 'free' reader might come with a minimum monthly fee or a higher rate. Compare the total cost over a year, including hardware and transaction fees.

What happens if you stop using a no-monthly-fee card reader?

If you stop using a no-monthly-fee card reader, you simply stop paying transaction fees. There is no monthly fee to cancel, and no contract to break. You may need to return the hardware if it was leased, but with Zettle, you own the reader after paying £29.

SumUp and Square do not publish hardware costs, but if you bought the reader, it is yours. If you stop using the service, you can keep the reader or sell it. There are no penalties for inactivity.

However, check if there is a dormant account fee. Some providers charge a monthly fee if you do not process any transactions for a certain period. The providers listed here do not, but it is worth confirming.

If you decide to switch to another provider, you can do so without notice. This flexibility is a major benefit of pay-as-you-go pricing. Just ensure you have no outstanding hardware payments.

Glossary: card payment terms explained

Pay-as-you-go (PAYG): A pricing model where you pay a percentage of each card transaction instead of a fixed monthly fee. No monthly fee is charged, but the rate per transaction is higher.

Monthly fee: A fixed charge paid every month regardless of transaction volume. Some providers charge this in addition to a per-transaction rate.

Settlement: The time it takes for funds from card transactions to be transferred to your bank account. It can range from minutes to a few days.

Hardware: The physical card reader device. Costs vary by provider and may be a one-off purchase or included in a monthly plan.

Contract: A binding agreement for a fixed period, often 12 or 18 months. No-monthly-fee providers typically do not require a contract.

Chargeback: A reversal of a card transaction, often due to a dispute. Providers may charge a fee for each chargeback, which is not always published.

Checklist: what to check on a fee statement or contract

• Check the published transaction rate on the provider's pricing page, e.g., SumUp at 1.69%.
• Confirm there is no monthly fee by reading the terms and conditions.
• Compare hardware costs: Zettle from £29, others not published.
• Review settlement times: SumUp next day, Zettle within minutes.
• Look for hidden fees like chargebacks or cross-border charges.
• Ensure there is no contract or early termination fee.

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

Are there hidden fees on pay-as-you-go card readers?

Yes, there can be hidden fees. While the transaction rate is published, providers may charge for chargebacks, refunds, or international cards. For example, SumUp's rate is 1.69%, but cross-border transactions may incur a higher rate. Zettle and Square may also have different rates for keyed-in transactions. Hardware costs are another potential fee: Zettle charges from £29, but SumUp and Square do not publish their prices. Always read the full pricing document to see if there are any additional charges for account inactivity or early termination, though the no-monthly-fee providers typically do not have such fees.

Do I need a contract with a no-monthly-fee card reader?

No, you do not need a contract with providers like SumUp, Zettle, and Square. They offer month-to-month service with no minimum term. This means you can stop using the service at any time without penalty. In contrast, traditional providers like takepayments require a 12-month contract, and Barclaycard has an 18-month term. Without a contract, you have the flexibility to switch providers if you find a better deal. However, you may have already paid for the hardware, so consider that when switching.

Can I get a free card reader with no monthly fee?

As of 2026, no provider in the table offers a free card reader with no monthly fee. Zettle charges from £29 for its reader, which is the lowest published hardware cost. SumUp and Square do not publish hardware costs, so it is unclear if they ever offer free readers. Some providers may offer free hardware as part of a promotion, but often that requires a contract or a minimum monthly fee. For example, Barclaycard charges £29 + VAT for hardware but has a monthly fee after 12 months. Always compare the total cost, including hardware and transaction fees.

Do pay-as-you-go card readers accept American Express?

Most pay-as-you-go card readers accept American Express, but the transaction rate may be higher than for Visa or Mastercard. SumUp, Zettle, and Square all support Amex, but the rate is not always published. For example, SumUp's standard rate is 1.69%, but Amex transactions might incur a higher fee. Zettle and Square may also have different rates for Amex. It is best to check the provider's pricing page or contact customer support to confirm the exact rate for Amex transactions. Some providers may charge a higher percentage for Amex due to the interchange fees.

What happens if I stop using the card reader?

If you stop using a no-monthly-fee card reader, you simply stop paying transaction fees. There is no monthly fee to cancel and no contract to break. You own the hardware if you purchased it, so you can keep it or sell it. For example, Zettle's reader costs from £29, and once paid, it is yours. SumUp and Square do not publish hardware costs, but you likely own the reader after purchase. There are no penalties for inactivity, but check if there is a dormant account fee. The providers listed here do not charge such fees, but it is always wise to read the terms.