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

LAST REVIEWED 2026-09-06

How pay-as-you-go pricing works

Pay-as-you-go (PAYG) card readers are a popular choice for small businesses and sole traders in the UK because they avoid a fixed monthly fee. Instead, the provider charges a percentage of each transaction, typically between 1.5% and 2.5% for consumer cards. This model suits businesses with low or unpredictable transaction volumes, as costs scale directly with sales.

The published rate often applies to standard debit and credit cards, but premium cards such as corporate or rewards cards may incur higher charges. Some providers also add a small fixed fee per transaction, though this is less common among PAYG plans. It is essential to read the terms carefully to understand which card types are covered and whether any minimum monthly usage applies.

PAYG pricing is transparent in principle, but the actual cost depends on the average transaction value. For example, a 1.69% rate on a £10 transaction costs 17p, while on a £50 transaction it costs 85p. Businesses with high average tickets may find that a monthly subscription with a lower rate becomes more cost-effective, even if they do not process every month.

UK readers with no monthly fee

Several providers in the UK offer card readers with no monthly fee, operating on a pure pay-as-you-go basis. These include well-known names such as SumUp, iZettle (now part of Zettle by PayPal), and Worldpay Zettle. Each has its own pricing structure, hardware options, and payout times.

SumUp offers a standard reader with a transaction fee of 1.69% for most card payments, which is among the lowest published rates. Zettle by PayPal charges 1.75% for its standard reader, while Worldpay Zettle also advertises a rate of 1.75% for its basic model. These rates are subject to change and may vary depending on the type of card used.

It is important to note that the published rate is not the only cost. Hardware must be purchased outright, and some providers may charge for replacements or additional accessories. Payout times also differ: some offer next-day settlement, while others take two to three business days. Businesses should compare the total cost of ownership, including hardware and any per-transaction fees, before choosing a provider.

The table below summarises the key features of leading PAYG providers, based on information available on publish day.

Hardware costs

Unlike monthly subscription plans that sometimes include a free reader, pay-as-you-go providers typically require you to buy the hardware upfront. Prices vary by model and features. Basic card readers that connect to a smartphone via Bluetooth are the most affordable, while standalone devices with built-in printers cost more.

For example, SumUp's standard card reader is priced at £39, while Zettle's equivalent reader costs £29. More advanced models, such as those with contactless and chip-and-PIN support, may cost between £50 and £100. Some providers offer refurbished or discounted readers, but these may come with limited warranties.

Hardware costs are a one-off expense, but they can be significant for a new business. It is worth considering whether the reader will be used frequently enough to justify the initial outlay. Some providers occasionally run promotions that reduce the price of the reader, but these are not guaranteed.

Additionally, if the reader is lost, stolen, or damaged, replacement costs apply. Businesses should factor in the potential need for a spare reader, especially if they attend markets or events where equipment failure could mean lost sales.

Where PAYG becomes expensive

While pay-as-you-go readers have no monthly fee, they can become expensive in certain scenarios. The most obvious is high transaction volumes: because the percentage rate is higher than on monthly plans, processing thousands of pounds each month will cost more in the long run.

Another hidden cost is the treatment of premium cards. Many PAYG providers charge a higher rate for corporate cards, foreign-issued cards, or rewards cards. For example, a rate of 1.69% might apply only to standard consumer debit and credit cards, while corporate cards could attract a fee of 2.5% or more. Businesses that serve corporate clients may see their effective rate rise significantly.

Chargebacks and refunds can also incur fees. Some providers charge a fee for each chargeback, which can be as high as £20 or more. Refunded transactions may not have the original processing fee returned, meaning the business loses both the sale and the fee.

Finally, payout speed can affect cash flow. If a provider offers next-day payouts only for a fee, or if standard payouts take several days, businesses with tight cash flow may need to pay for faster access to funds. These additional charges can erode the savings from avoiding a monthly fee.

Payout speed on PAYG

Payout speed is a critical factor for many businesses, as it determines when funds from card transactions become available in the business bank account. On pay-as-you-go plans, payout times vary by provider and can range from next business day to three or more days.

SumUp typically offers payouts within one to two business days, while Zettle by PayPal often settles funds by the next business day if transactions are processed before a certain cutoff. Worldpay Zettle also provides next-day payouts for an additional fee, with standard payouts taking two to three days.

Some providers offer instant or same-day payouts for a small fee, usually around 1% of the transaction amount. This can be useful for businesses that need immediate access to cash, but it adds to the overall cost. Others may have a minimum payout threshold, meaning funds are only transferred once a certain amount is accumulated.

It is important to check the provider's payout policy before signing up, as delays can impact cash flow. Businesses that rely on daily sales to cover expenses may prefer a provider with faster standard payouts, even if the transaction rate is slightly higher.

Who PAYG suits

Pay-as-you-go card readers are best suited to businesses with low or irregular transaction volumes, such as market traders, pop-up shops, freelancers, and hobbyists. For these users, the absence of a monthly fee is a major advantage, as they only pay when they make a sale.

Startups and very small businesses that are unsure of their future sales volume may also benefit from PAYG, as it allows them to test the waters without committing to a fixed monthly cost. The ability to cancel at any time without penalty is another plus.

However, businesses that process a high volume of transactions, or that have a high average transaction value, may find that a monthly subscription plan with a lower transaction rate is more cost-effective. For example, a business processing £5,000 per month at 1.69% would pay £84.50 in fees, whereas a monthly plan at 1.5% would cost £75 plus a monthly fee of, say, £20, making it more expensive overall.

Ultimately, the choice depends on the specific business model. PAYG offers flexibility and low upfront costs, but it is not always the cheapest option. Businesses should calculate their expected monthly processing volume and compare the total costs of different plans.

Frequently asked questions

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

While pay-as-you-go readers have no monthly fee, there can be hidden costs. These include higher rates for premium cards, chargeback fees, and fees for faster payouts. Some providers also charge for refunds or for replacing lost or damaged hardware. Always read the terms and conditions to understand the full fee structure before signing up.

Do I need a contract?

Most pay-as-you-go card readers do not require a long-term contract. You can usually cancel at any time without penalty. However, some providers may have a minimum usage period or require you to return the hardware if you cancel. Check the provider's terms to see if there are any cancellation fees or notice periods.

Can I get the reader free?

Some providers occasionally offer free card readers as part of promotional deals, but this is not common with pay-as-you-go plans. Typically, you must purchase the hardware upfront. Prices range from around £29 to £100 depending on the model. Some providers may offer a discount if you sign up for a monthly plan, but that would defeat the purpose of avoiding a monthly fee.

Do PAYG readers take Amex?

Most modern card readers accept American Express, but the transaction fee may be higher than for Visa or Mastercard. Amex fees can be around 2% to 3%, compared to the standard rate of 1.69% for consumer cards. Some providers may not support Amex at all, so it is important to check with the provider if you expect to receive Amex payments.

What happens if I stop using the reader?

If you stop using a pay-as-you-go reader, you typically do not incur any ongoing fees. However, you may still be liable for any outstanding hardware costs if you purchased the reader on a payment plan. Some providers may deactivate your account after a period of inactivity, but you can usually reactivate it later. There is no penalty for not using the reader, but you will not be able to process payments until you do.