Best Card Machines for Small Business (UK)

The 3 costs that matter most (terminal, transaction fees & contracts)

When comparing card machines, it’s important to look beyond the hardware and consider the total cost of ownership. This includes the upfront or monthly cost of the terminal, the transaction fees you’ll pay each time you accept card payments, and the contract terms that may lock you in or add hidden charges. By understanding these three key costs, you can make an informed decision and avoid overpaying for your card payment solution.

Who this guide is for (retail, hospitality, trades and ecommerce)

This guide is designed for UK businesses of all sizes, whether you run a retail shop, café, restaurant, mobile trade, or ecommerce store, who want to accept card payments and need help choosing the best card machine and provider. If you’re looking to meet customer expectations, reduce costs, and avoid being locked into unfavourable contracts, this guide will help you compare your options and find the right fit for your business.

How card machines are normally supplied (included with the provider)

Most UK merchant service providers supply card machines as part of their package, either for a monthly rental fee or as part of a contract. This means you don’t usually need to buy a card machine outright unless you have very specific requirements. However, businesses should be aware of additional fees that may apply beyond the base rates, such as monthly charges, transaction fees, or other supplementary costs, which can vary depending on the provider and plan.

How IMS helps you switch to a better deal

IMS makes it easy to find a better deal by comparing offers from over 90% of the UK’s leading card payment processors. You can compare card payment machines based on fees, features, and payment times, helping you select the best option for your business needs. Their free comparison service and expert advice ensure you’re not locked into unfavourable contracts or overpaying for merchant services. Simply request a free quote or book a short call to get started.

When buying a card machine outright makes sense (rare cases)

In rare cases, buying a card machine outright may make sense for businesses with unique requirements or those who want to avoid ongoing rental fees. However, most businesses benefit from the flexibility and support that comes with renting through a provider.

Total cost of card processing (not just headline rates)

When comparing the best card machines for small businesses, it’s essential to look beyond just the advertised rates. The total cost includes transaction fees, device costs, monthly charges, and any additional service fees. Higher transaction fees may apply for ecommerce integration, payment links, or managed merchant accounts, so it’s important to review the full fee structure. Payment links are a useful feature for online and remote payments, and their associated costs should be considered as part of your decision. Key factors in choosing card machines include transaction fees, device cost, features, and integration needs.

Contract length, early exit fees and hidden charges

Always check the contract length and terms before signing up. Some providers lock you in for a fixed term, while others offer rolling monthly contracts. Be aware that you may incur additional fees depending on the provider and services chosen, such as setup, PCI compliance, or early termination charges. Make sure you understand all potential costs before committing.

Payout speed (next-day vs standard settlement)

Payout speed can vary between providers, with some offering next-day settlement and others taking a few working days. Transaction volume can influence the fee structure and rates offered by payment providers, so businesses with higher sales may be able to negotiate better terms.

Service levels, onboarding and UK support

Good support and a smooth onboarding process are crucial, especially for small businesses new to card payments. Having your own merchant account can reduce costs for high transaction volumes but may involve extra setup and fees compared to using a provider-managed account. Look for providers with UK-based support and clear guidance throughout the setup process.

Portable card machines (best for hospitality and busy shops)

A portable card machine is a payment device designed for mobility, allowing you to process payments on the go, ideal for settings like markets, home visits, or businesses with multiple locations. Portable card machines connect over Wi-Fi or mobile data, giving you flexibility to take payments anywhere within your premises or even outside. These devices are especially useful for table service in restaurants, cafés, or for businesses that need to move around their venue.

Portable card readers connect to smartphones or tablets, making them perfect for mobile businesses, market stalls, or delivery services. Fixed terminals are suitable for retail stores, while portable card readers are ideal for mobile businesses. App based card readers are popular for their ease of use and integration with mobile or tablet applications, making them appealing for small businesses and budget-conscious merchants.

Countertop terminals (best for fixed tills)

Countertop terminals are designed for businesses with a fixed checkout point, such as retail shops or cafés. These devices are connected via phone line, broadband, or Ethernet, and are best suited for locations where the card machine stays in one place. Integrated terminals are designed for fixed locations, like shops or cafés, offering a smooth, professional checkout experience.

Mobile card machines (best for trades, vans and pop-ups)

A mobile card machine is a portable payment device with mobile connectivity options, such as an integrated SIM card, making it suitable for on-the-go transactions. Mobile card machines are perfect for tradespeople, delivery drivers, or pop-up shops that need to accept payments away from a fixed location. Mobile card readers are compact devices that use a mobile network signal to process payments on the go, and can operate independently of Wi-Fi or wired connections by using mobile data. This flexibility makes them ideal for businesses that travel to their customers or operate in areas without reliable internet access.

POS systems (best for multi-location retail and restaurants)

POS (Point of Sale) systems combine a card machine with software and hardware to manage sales, inventory, and customer data. These are best for larger businesses or those with multiple locations, such as retail chains or restaurants. Integrated terminals are designed for fixed locations, like shops or cafés, offering a smooth, professional checkout experience. POS systems often include features like EPOS integrations, advanced reporting, and support for multiple payment types.

Card machine rental vs outright purchase

When deciding between renting or buying a card machine, the card machine cost is a key consideration. Mobile card readers typically cost less than countertop card machines. Outright purchase means you pay a one-off fee for the device, while rental involves ongoing monthly payments. For some businesses, buying can be more cost-effective in the long run, especially for lower-cost mobile readers. However, rental may suit those who want to avoid upfront costs or need more advanced hardware.

What 'free card machine' deals really mean

Some providers advertise “free” card machines, but these usually come with higher transaction fees or longer contract terms. It’s important to compare the total cost of ownership, including any hidden charges, to ensure you’re getting the best value. Countertop card machines cost more than mobile card readers, and monthly rental costs vary depending on the device.

SIM plans, WiFi, Bluetooth and connectivity costs

Connectivity options can affect the overall cost of your card machine. Some devices include built-in SIMs with data plans, while others rely on WiFi or Bluetooth. Be sure to check if there are any additional charges for connectivity, especially if you need to process payments on the go.

Repairs, replacements and warranty cover

Consider the warranty and support options when comparing card machine costs. Some providers include repairs and replacements in their rental agreements, while others may charge extra. Always check the terms to avoid unexpected expenses.

Fixed-rate pricing vs interchange-plus pricing

When comparing the best card machines for small businesses, you’ll encounter two main pricing models: fixed-rate and interchange-plus. Fixed-rate pricing means you pay a set percentage for every card transaction, regardless of the card type. Interchange-plus pricing, on the other hand, separates the interchange fee (set by card networks like Visa and Mastercard) from the provider’s markup. Transaction fees for card payment machines usually range around 1.5% to 2% of the transaction value, with some providers adding a fixed fee in pennies. Payment processors facilitate card transactions and set the fee structures for different payment methods.

Debit card vs credit card charges (why your blend matters)

Debit card payments are the most popular method of digital payment in the UK, and card payment machines support both debit card payments and credit card payments. Typically, debit card transactions cost less to process than credit card payments, as the risk and interchange fees are lower. However, the exact difference depends on your payment processor and the pricing model you’re on. Understanding your sales mix between debit and credit card payments can help you choose the most cost-effective solution.

Authorisation fees, PCI fees and monthly minimums

In addition to transaction fees, you may encounter authorisation fees (charged per card transaction), PCI compliance fees, and monthly minimum charges. Card not present (CNP) transaction fees are generally higher due to increased fraud risk. Always check the full fee schedule from your payment processor to avoid hidden costs.

Which pricing model is best for small businesses

The best pricing model depends on your business’s card turnover, average transaction value, and sales mix. Some card payment providers offer customised transaction fees for businesses with higher annual card sales. Most card payment machines accept major debit cards and major card issuers like Visa and Mastercard, but some may not support American Express. Always compare offers from multiple payment processors to ensure you’re getting the best deal for your specific needs.

Best all-round provider for most SMEs

Square remains a top choice for small businesses due to its transparent pricing, ease of use, and robust app ecosystem. Square Reader offers no monthly fees and a flat transaction rate, making it suitable for startups. Leading card machines include takepaymentsplus, Square, and SumUp, categorised by pricing models and specialised features.

Best for low monthly cost and flexibility

SumUp and Zettle are popular for their low upfront costs and pay-as-you-go pricing. Revolut offers low fees for UK consumer cards but requires a Revolut business account. These options are ideal for businesses with unpredictable sales volumes or those just starting out.

Best for high turnover businesses

Worldpay and Barclaycard are often chosen by businesses with higher transaction volumes due to their competitive rates and advanced reporting tools. For low transaction fees, consider Square or Zettle; for pay-as-you-go options, Barclaycard Anywhere is advisable.

Best for online + in-person payments

Stripe and Opayo are strong contenders for businesses needing seamless integration between online and in-person payments. Their payment gateways and EPOS integrations are highly rated, supporting a wide range of payment types.

Best for businesses that need fast payouts

myPOS is known for its instant settlement feature, allowing businesses to access funds immediately after a transaction. The myPOS Go 2 card reader offers a free e-money merchant account and instant access to funds, making it suitable for international payments. This is particularly useful for businesses with cash flow concerns or those operating across borders.

Best for mobile or occasional use

SumUp is a favourite for mobile businesses or those with occasional card payment needs. SumUp has a low upfront cost and transaction fees, making it ideal for mobile or occasional use. Its compact design and simple app make it easy to take payments anywhere.

Contactless and digital wallets (Apple Pay / Google Pay)

Most modern card machines support contactless cards and mobile wallets, allowing customers to pay quickly and securely using tap-and-go technology. These devices can accept payments from major card issuers like Visa and Mastercard, as well as digital wallets such as Apple Pay and Google Pay. Supporting mobile wallets and contactless cards provides a flexible, secure, and convenient payment experience for both businesses and customers.

Tipping, pre-authorisation and hospitality features

Many card machines offer features tailored for hospitality, such as tipping prompts, pre-authorisation for bar tabs, and split-bill functionality. These features are designed to streamline service and improve the customer experience at the point of sale. Choosing the right card payment machine can speed up transactions, improve the customer experience, and help businesses stay competitive in an increasingly cashless world.

Refunds, returns and chargeback support

Efficient handling of refunds, returns, and chargebacks is essential for any business. Modern card machines are built with robust security features, including data protection, to protect against fraud and ensure safe processing of these transactions. This helps maintain customer trust and reduces the risk of financial loss.

Reporting, reconciliation and accounting integrations

Advanced card machines offer integrated reporting, reconciliation, and accounting features, making it easier to track sales and manage finances. Modern card machines are compatible with a wide range of card issuers and payment methods, ensuring seamless integration with your business operations.

Multi-user and multi-site capability

For businesses with multiple staff or locations, multi-user and multi-site capability is crucial. The right card machine can offer a full point-of-sale service that fits in your hand, including a product library and receipt printing, making it easy to manage sales across different sites and users. Payment methods should include contactless, chip and PIN card, and digital wallets like Apple Pay and Google Pay to provide maximum flexibility and convenience.