Zettle Card Reader Fees UK: Rates, Hardware and Payout Times

LAST REVIEWED 2026-09-06

Fees

Zettle charges a single, flat rate of 1.75% for all in-person card transactions. This rate applies to Visa, Mastercard, American Express, and other major cards, with no additional charges for different card types. There are no monthly fees, setup fees, or hidden costs, making it easy for businesses to predict their payment processing expenses.

The 1.75% rate is competitive within the UK market, particularly for small businesses and sole traders. Unlike some providers that offer tiered pricing based on turnover, Zettle's flat rate simplifies budgeting. For example, a £100 transaction would incur a fee of £1.75, leaving £98.25 in the merchant's account.

It is important to note that the rate applies only to card-present transactions. For online payments or manually keyed-in transactions, Zettle may charge a higher rate, but these are not published on the standard pricing page. Businesses should check the latest terms for any changes, as fees can be updated with notice.

Zettle does not charge for refunds, but the original transaction fee is not returned. Additionally, there are no fees for chargebacks, though the merchant must have sufficient funds to cover any disputes.

Hardware

Zettle offers a range of card readers to suit different business needs. The most affordable option is the Zettle Reader, priced from £29. This compact device connects to a smartphone or tablet via Bluetooth and is ideal for mobile businesses, market stalls, and pop-up shops. It accepts contactless payments, including Apple Pay and Google Pay, as well as chip and PIN.

For businesses requiring a more robust solution, Zettle also provides the Zettle Reader 2, which features a built-in receipt printer and a longer battery life. The price for this model is not published on the standard pricing page, but it is available for purchase through Zettle's website or authorised resellers.

All Zettle card readers are certified for security and support NFC, EMV, and magnetic stripe payments. They come with a free point-of-sale (POS) app that allows merchants to manage sales, track inventory, and generate reports. The app is available for iOS and Android devices.

Hardware purchases are one-off costs, with no rental or leasing fees. This aligns with the Payment Systems Regulator's Specific Direction, which caps initial terminal lease terms at 18 months, but Zettle's outright purchase model avoids such contracts entirely.

Payout

Zettle offers fast payouts, with funds typically arriving in the merchant's bank account within minutes of a transaction. This is a significant advantage for businesses that need immediate access to their cash flow. The exact speed can depend on the merchant's bank and the time of day, but Zettle advertises 'within minutes' as the standard.

To receive payouts, merchants must link a UK bank account to their Zettle account. There is no minimum payout threshold, and funds are transferred automatically after each sale. For transactions made outside of banking hours, payouts may be processed on the next business day.

Zettle does not charge a fee for payouts, and there are no hidden charges for faster settlement. This contrasts with some providers that offer next-day or instant settlement for an additional fee. Zettle's model is straightforward: the transaction fee is deducted at the point of sale, and the remaining amount is sent to the merchant.

It is important to note that payouts can be delayed if there are issues with the merchant's bank details or if a transaction is flagged for review. In such cases, Zettle may hold funds until the issue is resolved, but this is rare.

Contract terms

Zettle operates on a no-contract basis, meaning there are no long-term commitments or recurring fees. Merchants can use the service on a pay-as-you-go basis, paying only the 1.75% transaction fee. This flexibility is particularly appealing to seasonal businesses or those with fluctuating sales volumes.

There are no cancellation fees, and merchants can stop using the service at any time without penalty. However, any hardware purchased remains the property of the merchant, and the Zettle app can be used indefinitely as long as the account is active.

Zettle's terms are designed to be transparent, with no hidden charges. The company states that there are 'no contracts or recurring fees' on its pricing page. This aligns with industry best practices and the Payment Systems Regulator's push for clearer pricing information.

While there is no minimum contract length, merchants must agree to Zettle's terms of service, which include provisions on acceptable use, data protection, and dispute resolution. It is advisable to review these terms before signing up, as they outline the responsibilities of both parties.

Regulatory status

Zettle is authorised by the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017. Its FCA register number is 900010, and it is permitted to provide payment services, including merchant acquiring. This regulatory status ensures that Zettle adheres to strict standards on safeguarding customer funds and reporting.

As an FCA-regulated entity, Zettle is required to follow rules on transparency, including providing clear information on fees and charges. It also participates in the Financial Ombudsman Service (FOS), which offers a free and independent complaints resolution process. The FOS can award compensation up to a limit that is not published here, but it is set annually.

Zettle is also subject to the Interchange Fee Regulation (IFR), which caps consumer debit card interchange fees at 0.2% and credit card fees at 0.3%. While these caps apply to card schemes, Zettle's 1.75% merchant fee is separate and reflects the overall cost of processing.

In July 2023, the Payment Systems Regulator introduced Specific Directions requiring payment providers to offer summary boxes and trigger messages on terminal contracts. Zettle's no-contract model already exceeds these requirements, as it does not impose long-term leases.

Who it suits

Zettle is best suited to small businesses, sole traders, and freelancers who need a simple, low-cost card payment solution. Its flat 1.75% fee and no monthly charges make it an attractive option for those with low to moderate transaction volumes. The affordable hardware, starting at £29, lowers the barrier to entry for new businesses.

The fast payout within minutes is a key benefit for businesses that rely on immediate cash flow, such as market traders, food trucks, and mobile service providers. The flexibility of no contracts also appeals to seasonal businesses that may only trade for part of the year.

However, Zettle may not be the best fit for high-volume businesses that could negotiate lower rates with traditional merchant acquirers. The flat rate, while simple, may be higher than the blended rate offered by some providers for large turnovers. Additionally, businesses that require advanced features, such as multi-location inventory management or complex reporting, may need to consider more comprehensive POS systems.

Zettle's integration with PayPal is a unique advantage for businesses that already use PayPal for online payments, as it allows for a unified payment ecosystem. Overall, Zettle offers a transparent and flexible solution for the UK's small business community.

Frequently asked questions

What is the Zettle fee?

Zettle charges a flat fee of 1.75% for all in-person card transactions. This rate applies to Visa, Mastercard, American Express, and other major cards. There are no monthly fees, setup fees, or hidden charges. The fee is deducted from each transaction, and the remaining amount is paid out to your bank account. This simple pricing model makes it easy to calculate costs, as a £100 sale would incur a £1.75 fee.

Is Zettle free monthly?

Yes, Zettle has no monthly fees. The service is pay-as-you-go, meaning you only pay the 1.75% transaction fee when you make a sale. There are no subscription charges, no minimum usage requirements, and no recurring costs. This makes Zettle an affordable option for businesses with variable sales volumes. You can use the Zettle app and card readers without any ongoing commitment, and you can cancel at any time without penalty.

How fast is Zettle payout?

Zettle payouts are typically processed within minutes of a transaction. The funds are transferred directly to your linked UK bank account. The exact speed can depend on your bank's processing times, but Zettle advertises 'within minutes' as the standard. There is no minimum payout threshold, and no fees for payouts. For transactions made outside of banking hours, payouts may be delayed until the next business day.

Is Zettle FCA regulated?

Yes, Zettle is authorised by the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017. Its FCA register number is 900010. This means Zettle must comply with strict rules on safeguarding customer funds, transparency, and reporting. As an FCA-regulated firm, Zettle also participates in the Financial Ombudsman Service, providing customers with access to free and independent complaints resolution.

Does Zettle work with PayPal balance?

Yes, Zettle is a PayPal company, and it integrates seamlessly with PayPal accounts. Merchants can accept payments through Zettle and have funds settled to their PayPal balance if they choose. This allows for a unified payment ecosystem, especially for businesses that already use PayPal for online transactions. However, the standard payout method is to a UK bank account, and merchants can manage their payout preferences in the Zettle app.