Zettle Card Reader Fees UK 2026: 1.75% Rate, Hardware and Payout

LAST REVIEWED 2026-09-06

What are Zettle's card reader fees in the UK?

Zettle charges a flat rate of 1.75% for every in-person card transaction. There is no monthly fee, no setup cost, and no contract. This rate applies to all major debit and credit cards, including contactless and mobile payments.

The 1.75% rate is published on Zettle's pricing page as of 2026-09-06. The rate is competitive with other providers, but it is not the lowest: SumUp charges 1.69% and Square also charges 1.75%.

Zettle does not charge extra for Amex, corporate cards, or international cards, which some providers do. However, the rate is higher than the 0.2% to 0.3% interchange fees that card networks charge, because the provider adds its margin. Always check the effective rate after refunds and chargebacks, as these may not be refunded.

Does Zettle charge a monthly fee?

No, Zettle does not charge a monthly fee. The monthly fee is £0. This is confirmed on Zettle's pricing page and in the table above, which shows Zettle with £0 monthly fee.

This makes Zettle a low-cost option for businesses with low or unpredictable sales volumes. In contrast, Tide charges £2.99 + VAT per month, and Barclaycard charges £0 for the first 12 months then £18 + VAT per month. Worldpay charges £20.00 per terminal per month.

With Zettle, you only pay when you take a payment. This can be beneficial for seasonal businesses or startups. However, consider that Zettle's per-transaction rate of 1.75% is higher than some competitors, so if you process high volumes, a provider with a lower rate but a monthly fee might be more cost-effective. Compare total costs based on your monthly turnover.

How much does Zettle card reader hardware cost?

Zettle card readers start from £29 excluding VAT. The exact price depends on the model: the Zettle Reader 2 is typically £29, while the Zettle Reader 2 with contactless and chip-and-PIN may be higher. The table above shows hardware from £29.

For a one-off purchase of £29, you own the device. There is no rental fee. In comparison, Barclaycard charges £29 + VAT one-off for hardware, and Tide charges from £11 + VAT. SumUp's hardware price is not published.

Zettle also offers a standalone app that turns your smartphone into a card reader, with no additional hardware cost. This can be a low-cost entry point. Check the Zettle website for current models and bundle deals, as prices may vary. Remember to factor in VAT and any shipping costs.

How fast does Zettle pay out?

Zettle pays out within minutes to your PayPal Business account. This is a key differentiator: most providers settle next day or within 24 hours. The table above shows Zettle's settlement as 'within minutes to PayPal Business account'.

This instant access to funds can improve cash flow, especially for small businesses. However, you must have a PayPal Business account to receive payouts. If you don't have one, you'll need to create it. There is no fee for instant payout, but PayPal may charge for currency conversion if you sell in foreign currencies.

In contrast, SumUp pays out next day, Tide pays next business day, and takepayments pays next working day. Worldpay settles within 24 hours. Zettle's speed is a clear advantage, but it ties you to PayPal's ecosystem. Check that PayPal's terms are acceptable for your business.

Does Zettle require a long-term contract?

No, Zettle does not require a contract. You can use the service on a pay-as-you-go basis with no minimum term. The table above shows Zettle with 'no contract'.

This flexibility means you can stop using Zettle at any time without penalty. In contrast, takepayments requires a 12-month contract, and Barclaycard requires an 18-month contract. Worldpay's contract length is not published.

No contract is beneficial for businesses that want to try a provider or have seasonal fluctuations. However, you still need to purchase the hardware, which is a sunk cost if you leave. Also, check Zettle's terms for any notice period or account closure fees. Typically, there are none, but always read the terms.

Is Zettle regulated by the FCA?

Zettle is regulated by the Financial Conduct Authority (FCA) for payment services. Zettle AB is authorised as an electronic money institution. This means it must follow FCA rules on safeguarding customer funds and providing clear information.

Regulation provides a level of protection for your money. Zettle is also part of PayPal, which is a major global payments company. The FCA registration number can be checked on the FCA register.

When choosing a card reader provider, check its FCA status. All major providers like SumUp, Square, and Barclaycard are also FCA-regulated. This ensures that your funds are protected if the provider becomes insolvent. You can verify Zettle's status on the FCA website.

Who is Zettle best suited for?

Zettle is best suited for small to medium-sized businesses that want a simple, no-contract card reader with fast payouts. Its 1.75% rate and £0 monthly fee make it attractive for low-volume sellers, pop-up shops, and market traders.

Businesses that already use PayPal may find Zettle convenient because payouts go directly to their PayPal account. The hardware cost from £29 is competitive. However, if you process high volumes, a lower rate like SumUp's 1.69% might save money despite similar features.

Zettle is not ideal for businesses that need next-day settlement to a bank account, as payouts are only to PayPal. Also, if you prefer a provider with a physical branch, Zettle is online-only. Compare with other providers in the table above to see which fits your needs.

How does Zettle compare with SumUp and Square?

Zettle charges 1.75% per transaction, SumUp charges 1.69%, and Square also charges 1.75%. All three have no monthly fee and no contract. Zettle pays out within minutes to PayPal, SumUp pays next day, and Square's settlement is not published.

Hardware: Zettle from £29, SumUp not published, Square not published. Zettle's hardware price is transparent.

Zettle's unique selling point is instant payout to PayPal. If you don't use PayPal, SumUp might be more straightforward with next-day bank settlement. Square offers similar features but lacks published settlement times. Consider your payment habits and whether you need instant access to funds.

What are the hidden costs of using Zettle?

Zettle's published fees are 1.75% per transaction and £0 monthly. However, there are potential hidden costs: hardware purchase from £29, chargebacks, and refunds. Zettle may charge a fee for chargebacks, though it is not published.

Refunds: when you refund a transaction, the 1.75% fee is typically not returned. This means you lose the fee on refunded sales.

There is no fee for instant payout, but you must have a PayPal Business account. If you don't, you may incur fees for transferring money from PayPal to your bank. Always read the full terms and conditions to understand all charges.

How to set up a Zettle account?

To set up a Zettle account, you need to sign up online with your business details. You'll need a PayPal Business account, as Zettle is integrated with PayPal. The process is straightforward and can be completed in minutes.

After signing up, you can order a card reader from £29 or use the Zettle app on your smartphone. The app is free to download. You'll need to verify your identity and business information, which may take a few days.

Once approved, you can start taking payments immediately. Funds are settled to your PayPal Business account within minutes. Ensure your PayPal account is verified to avoid delays. Zettle's website provides step-by-step guides. For more comparisons, see the UK Card Machine Providers Compared 2026: 10 Providers With Published Rates.

Glossary: card payment terms explained

Interchange fee: A fee paid by the merchant's bank to the cardholder's bank for processing a card transaction. It is a small percentage, typically 0.2% to 0.3% for debit cards.

Chargeback: A reversal of a card transaction initiated by the cardholder's bank, often due to a dispute. Merchants may incur a fee for each chargeback.

Settlement: The process of transferring funds from a card transaction to the merchant's bank account. It can be instant, next day, or within a few days.

PayPal Business account: A PayPal account designed for businesses, allowing them to receive payments and manage transactions. Zettle payouts are sent to this account.

Contactless payment: A payment method using near-field communication (NFC) to tap a card or mobile device on a reader.

Excluding VAT: The price before Value Added Tax is added.

Checklist: what to check on a fee statement or contract

• Check the per-transaction rate on your statement: it should be 1.75% for in-person payments.
• Verify there is no monthly fee: your statement should show £0 monthly charge.
• Confirm your payout arrives within minutes to your PayPal Business account.
• Check the hardware price: you should have paid from £29 excluding VAT for a reader.
• Review your contract: Zettle should have no minimum term or exit fee.
• Look for any hidden fees such as chargeback fees or currency conversion charges.

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

What is the Zettle fee?

Zettle charges a flat rate of 1.75% for every in-person card transaction. There is no monthly fee, no setup cost, and no contract. This rate applies to all major debit and credit cards, including contactless and mobile payments. The rate is published on Zettle's pricing page as of 2026-09-06.

Is Zettle free monthly?

Yes, Zettle has no monthly fee. The monthly fee is £0. This makes it a low-cost option for businesses with low or unpredictable sales volumes. You only pay when you take a payment. In contrast, some providers like Tide charge £2.99 + VAT per month, and Barclaycard charges £0 for the first 12 months then £18 + VAT per month.

How fast is Zettle payout?

Zettle pays out within minutes to your PayPal Business account. This is faster than most providers, which typically settle next day or within 24 hours. For example, SumUp pays out next day, and Tide pays next business day. To receive instant payouts, you must have a PayPal Business account. There is no fee for instant payout, but PayPal may charge for currency conversion.

Is Zettle FCA regulated?

Yes, Zettle is regulated by the Financial Conduct Authority (FCA) for payment services. Zettle AB is authorised as an electronic money institution. This means it must follow FCA rules on safeguarding customer funds and providing clear information. You can verify Zettle's FCA registration number on the FCA register. This regulation provides a level of protection for your money.

Does Zettle work with PayPal balance?

Yes, Zettle payouts are sent to your PayPal Business account, and you can use the balance as you wish. You can transfer funds to your bank account, make payments, or keep them in PayPal. However, transferring to a bank may incur a fee if you use instant transfer. Standard transfers are free but may take a few hours. Zettle is integrated with PayPal, so you need a PayPal Business account to use Zettle.