Switching Card Machine Provider in 2026: 7 Steps to Avoid Terminal Lock-In

LAST REVIEWED 2026-09-06

Why are card machine terminals locked to a provider?

Card machine terminals are often locked to a specific acquirer because they contain proprietary software and encryption keys that only work with that provider's network. This means you cannot simply insert a different SIM card or reconfigure the device to work with another service. The lock-in is a commercial strategy to retain customers, but it also ensures security and compliance with payment standards.

When you sign a contract, the terminal is usually provided on a lease or free-of-charge basis, but the terms often include a minimum period. During this time, the terminal is programmed to communicate only with the provider's acquiring bank. Even if the hardware is physically unlocked, the software may prevent it from connecting to other networks. Some providers offer 'unlocked' terminals that can be reprogrammed, but these are less common and may come at a higher upfront cost.

To understand your specific situation, check your contract for clauses about terminal ownership and compatibility. If you are considering switching, the table below shows typical contract terms and monthly fees for major UK providers. Note that some providers like SumUp and Zettle have no contract, while others like Barclaycard have an 18-month term. This information helps you plan the switch without incurring early termination fees.

What are the typical contract terms and fees for card machine providers?

Typical contract terms vary widely. The table below lists published terms and monthly fees for several UK providers. SumUp, Zettle, and Square have no contract and no monthly fee. takepayments has a 12-month contract with a fee not published. Barclaycard has an 18-month contract with £0 for the first 12 months, then £18 plus VAT. These figures are from published sources and may change.

When comparing, consider the total cost over the contract period. In contrast, a no-contract provider may charge higher transaction fees but no monthly fee. The Payment Systems Regulator (PSR) cap on new POS terminal leases is 18 months, meaning providers cannot lock you into a lease longer than that. This cap applies to leases, not service contracts, so always check the nature of your agreement.

To avoid surprises, request a summary box from your provider, which must clearly state the contract length, monthly fees, and any termination costs. This is a PSR requirement since July 2023. Use this information to compare like-for-like and plan your switch.

How do I check both the current and new provider contracts?

To check both contracts, start by reviewing your current provider's terms for notice periods, early termination fees, and equipment return obligations. Then, obtain a summary-box quote from the new provider, which must clearly state the contract length, monthly fees, and any setup costs. This is a PSR requirement since July 2023.

Look for clauses that specify how to terminate, whether notice must be in writing, and the exact date the contract ends. Also, check if the terminal is leased or owned. If leased, you may need to return it at your own cost. If owned, you might be able to sell it or use it with another provider if it is unlocked.

For the new provider, verify that the terminal is compatible with your business needs, such as countertop or portable models. Ask about installation timelines and whether they offer a dual-running period to avoid downtime. The table above shows that some providers have no contract, which gives you flexibility, but they may charge higher transaction fees. Compare the total cost of ownership over your expected usage period.

What is a summary-box quote and why is it important?

A summary-box quote is a standardised document that card machine providers must give you, showing key contract terms in a clear format. It includes the contract length, monthly fees, transaction fees, and any termination costs. This is a PSR requirement since July 2023 to help businesses compare offers easily.

When switching, request a summary-box quote from each provider you consider. This allows you to compare like-for-like, avoiding hidden fees. For example, a provider might advertise a low monthly fee but charge high transaction fees. The summary box makes these costs transparent. Also, check the contract length: the PSR cap on new POS terminal leases is 18 months, so no provider can lock you into a lease longer than that. However, service contracts may have different terms.

Use the summary box to calculate the total cost over the contract period, including any upfront fees. Compare this with a no-contract provider that charges a higher transaction fee but no monthly fee. The right choice depends on your transaction volume. Always keep the summary box for your records.

How do I time the switch to avoid downtime and extra fees?

To time the switch, align the start date of your new contract with the end date of your current one. This avoids paying two providers simultaneously. However, you may need to overlap by a few days to ensure the new terminal is installed and tested before the old one is deactivated.

Start the process at least 4 weeks before your current contract ends. This allows time for ordering hardware, installation, and testing. Some providers offer a dual-running period where you can use both terminals temporarily. This is useful to ensure a smooth transition, but be aware of any extra costs.

Consider the timing of your business cycle. Avoid switching during peak seasons when downtime would be costly. Also, check if your current provider charges a cancellation fee if you leave early. The PSR cap on new POS terminal leases is 18 months, but early termination fees may still apply. Use the summary box to understand these costs. The table above shows that some providers have no contract, giving you flexibility to switch at any time.

What are the steps to return the old terminal and finalise the switch?

Returning the old terminal is a critical step. First, contact your current provider to request a return kit and instructions. Ensure you have the terminal's serial number and any accessories. Some providers may charge a fee if the terminal is not returned within a specified period, often 14 days after the contract ends.

Before returning, wipe any sensitive data from the terminal if possible. Most providers will do this remotely, but confirm. Use the provided packaging and arrange a tracked courier service. Keep the tracking number as proof of return. After the provider receives the terminal, they should send a final bill, including any outstanding fees or refunds for unused months.

Check the final bill against your records. If there are discrepancies, contact the provider immediately. The Financial Ombudsman Service can help if disputes are unresolved, but note that the award limit rises to £455,000 for acts on or after 1 April 2019. Once the old account is closed, confirm that no further charges will be made. The table above shows that some providers have no contract, making the return process simpler.

What happens if I have overlapping periods and dual running?

Overlapping periods occur when your new contract starts before the old one ends. This can happen if you need to test the new terminal or if installation is delayed. During this time, you may be paying fees to both providers, which is known as dual running.

To minimise dual running, coordinate the start and end dates precisely. If you must overlap, negotiate with the new provider to waive the monthly fee for the first month, or ask the old provider for a pro-rata refund. Some providers offer a 'switch guarantee' that covers dual running costs, but this is not universal. Check your contracts for such clauses.

The PSR cap on new POS terminal leases is 18 months, but this does not prevent dual running. To avoid it, plan the switch carefully. The table above shows that some providers have no contract, allowing you to start and stop at any time. However, if you are on a fixed-term contract, you may have to wait until it ends. Use the summary box to understand the notice periods and plan accordingly.

What are unlocked terminals and can I use them when switching?

Unlocked terminals are devices that are not tied to a specific provider and can be reprogrammed to work with any acquirer. They are less common and may cost more upfront, but they offer flexibility. If you own an unlocked terminal, you can switch providers without replacing the hardware.

However, most terminals provided on lease are locked. To use an unlocked terminal, you need to ensure it is compatible with the new provider's software and security requirements. Some providers may not support third-party terminals, so check before committing. If you are buying a terminal outright, look for models that are explicitly marketed as 'unlocked' or 'multi-acquirer'.

When switching, if you have an unlocked terminal, you can save on hardware costs. But you must still follow the 7 steps: review contracts, get a summary-box quote, time the switch, order new hardware if needed, arrange installation, return old terminals, and confirm final bills. The table above shows that some providers have no contract, which may make it easier to use your own terminal. Always verify compatibility with the new provider.

What should I check in the final bill after switching?

After switching, check the final bill from your old provider for any early termination fees, outstanding monthly charges, or equipment return costs. Ensure that you are not charged for periods after the contract ended. Also, verify that any deposits or prepaid amounts are refunded.

Compare the final bill with the summary box and your own records. If you see unexpected charges, contact the provider in writing. The Financial Ombudsman Service can help if disputes are unresolved, but note that the award limit rises to £455,000 for acts on or after 1 April 2019. Keep all correspondence and receipts.

From the new provider, check the first bill to ensure that the agreed rates are applied. The table above shows that some providers have no monthly fee, but transaction fees may vary. Confirm that the terminal is working correctly and that you have the necessary support contacts. If you are on a contract, note the renewal date and any price changes. The PSR cap on new POS terminal leases is 18 months, so your new lease cannot exceed that.

How do I avoid common pitfalls when switching providers?

Common pitfalls include not checking the notice period, underestimating the time to install new hardware, and failing to return the old terminal on time. To avoid these, follow the 7 steps methodically. Start by reviewing both contracts, then obtain a summary-box quote from the new provider.

Time the switch to avoid downtime and dual running. Order new hardware early and schedule installation. Return the old terminal promptly using a tracked service. Finally, confirm final bills and close the old account. The table above shows that some providers have no contract, which reduces the risk of lock-in, but you still need to manage the transition.

Another pitfall is ignoring the total cost of ownership. A low monthly fee may be offset by high transaction fees. Use the summary box to compare all costs. Also, be aware of the PSR cap on new POS terminal leases: 18 months. This protects you from long-term leases, but service contracts may have different terms. Always read the fine print and ask for clarification if needed.

Glossary: card payment terms explained

Acquirer: A financial institution that processes card payments on behalf of a merchant. It settles funds into the merchant's account.

Terminal lock-in: A situation where a card machine is programmed to work only with a specific provider, preventing use with other acquirers.

Summary box: A standardised document showing key contract terms, such as fees and contract length, required by the PSR since July 2023.

Dual running: The period when a merchant uses two card machines from different providers simultaneously, often during a switch.

PSR cap: The Payment Systems Regulator's limit on new POS terminal lease contracts, set at 18 months, to prevent long-term lock-in.

Unlocked terminal: A card machine that is not tied to a specific provider and can be reprogrammed to work with any acquirer.

Checklist: what to check on a fee statement or contract

• Check your current contract's notice period and early termination fees.
• Request a summary-box quote from at least three potential new providers.
• Verify that the new terminal is compatible with your business needs and premises.
• Schedule installation and testing before your old contract ends.
• Return the old terminal using a tracked service and keep proof of postage.
• Review the final bill from your old provider and the first bill from the new one.

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

Can I keep the terminal when switching?

In most cases, no. Terminals are often locked to a specific provider, meaning they cannot be used with another acquirer. If you own the terminal outright and it is unlocked, you may be able to keep it, but you must check compatibility with the new provider. If the terminal is leased, you will need to return it at the end of the contract. Some providers offer unlocked terminals for purchase, but these are less common. Always check your contract to see who owns the equipment.

How long does switching take?

Switching typically takes 2 to 4 weeks from signing the new contract to going live. This includes time for hardware delivery, installation, and testing. To avoid downtime, start the process at least 4 weeks before your current contract ends. Some providers offer faster installation, but it depends on your location and the type of terminal. The 7 steps outlined in this guide can help you plan the timeline effectively.

Will I pay two providers at once?

It is possible if your contracts overlap. To avoid dual running, coordinate the start date of your new contract with the end date of your old one. If an overlap is unavoidable, negotiate with the new provider to waive the first month's fee or ask the old provider for a pro-rata refund. Some providers offer a 'switch guarantee' that covers dual running costs, but this is not standard. Always read the terms carefully.

Do I need to return the old machine?

Yes, if the terminal is leased from your old provider. Most providers require you to return the equipment within a specified period, often 14 days after the contract ends. Failure to return it may result in a fee. Use the provided return kit and a tracked courier service to ensure safe delivery. Keep the tracking number as proof. If you own the terminal, you are not required to return it, but you may need to dispose of it securely.

What is an unlocked terminal?

An unlocked terminal is a card machine that is not tied to a specific provider. It can be reprogrammed to work with any acquirer that supports it. These terminals are less common and may cost more upfront, but they offer flexibility when switching providers. If you own an unlocked terminal, you can avoid the cost of new hardware. However, not all providers support third-party terminals, so check compatibility before committing.