For UK sole traders and SMEs, finding the cheapest card payment machine comes down to monthly turnover. Businesses processing under £2,000 monthly save most with contract-free readers like Square Reader 2 (1.75%) or SumUp Solo Lite (1.69%).

Mid-volume traders taking £3,000–£8,000 per month reduce charges via sub-1% subscription tiers, while high-volume merchants over £10,000 secure the lowest rates through bespoke interchange-plus contracts with leading payment processing companies.

Key Takeaways

• Micro-businesses processing under £2,000 per month avoid unnecessary fixed overheads by opting for pay-as-you-go card readers without monthly contracts.
• Mid-volume traders taking over £3,000 monthly cut transaction processing charges nearly in half by choosing low-rate subscription plans like SumUp Payments Plus.
• Tap to Pay on iPhone or Android eliminates hardware costs entirely, offering one of many alternative payment tools that allow sole traders to process contactless card payments using only a smartphone.
• Hidden processor fees, including PCI compliance charges, authorisation fees, and international card surcharges, can secretly add up to 2% to total payment processing costs.

What Are the Cheapest Card Payment Machines?

The cheapest overall card reader for micro-businesses in the UK is the Square Reader 2 (£19 + VAT hardware cost, 1.75% flat fee, £0 monthly fee).

For businesses processing higher volumes, Revolut Reader / Terminal Lite offers the lowest pay-as-you-go rate at 0.8% + 2p, while SumUp Payments Plus provides a 0.99% flat rate for a £19/month subscription fee.

Provider & Machine	Upfront Hardware Cost	Monthly Fee	Domestic Transaction Rate	Settlement Speed	Best For
Square Reader 2	£19 + VAT	£0	1.75% flat rate	Next business day	Micro-retailers & pop-ups
SumUp Solo Lite	£22.50 + VAT	£0	1.69% flat rate	Next business day	Mobile sole traders & cafes
SumUp Payments Plus	£22.50 + VAT	£19.00 / mo	0.99% flat rate	Next day	Mid-volume businesses (£3k–£8k/mo)
Revolut Reader	£49.00 + VAT	£0	0.80% + £0.02	24 Hours	High-value transactions & multicurrency
PayPal / Zettle Reader 2	£29.00 + VAT	£0	1.75% flat rate	Next business day (Instant to PayPal)	Existing PayPal business sellers
myPOS Go 2	£29.00–£39.00 + VAT	£0	1.10% + £0.07	Instant (3 seconds)	Cash-flow sensitive sole traders
Barclaycard Smartpay Anywhere	£29.00 + VAT	£0	1.60% flat rate	Next business day	Established small high-street shops
Tide Card Reader	£49.00–£99.00 + VAT	£0	0.89% + £0.03	1–3 business days	Tide business account holders
Tyl by NatWest (Pocket)	£0 (first 3 months)	£13.99 + VAT	Custom (0.5%–1.2%)	Next business day	Growing high-street retailers
Dojo Go / Pocket	£0 upfront (Contract dependent)	£20.00 / mo	Custom (Interchange Plus ~0.4%–0.9%)	Next day (10:00 AM)	Busy restaurants & retail stores

Square Reader 2

The Square Reader 2 is an affordable, entry-level card machine ideal for micro-businesses and mobile traders. Charging 1.75% per transaction with zero monthly fees, it pairs seamlessly with smartphones to deliver a free, feature-rich Point of Sale system with stock tracking and digital invoicing.

• Transaction Fee: 1.75% flat rate (all major card schemes, including Amex)
• Monthly Fee: £0 (no contract, no recurring commitments)
• Hardware Cost: £19 + VAT
• Settlement Speed: Next business day (Instant payout available for a 1.5% fee)
• Specialised In: All-in-one inventory management, integrated Point of Sale (POS), and flexible mobile trading

The reader pairs over Bluetooth with iOS or Android smartphones to create a portable till point.

Through the free Square POS app, you can track stock and issue digital receipts without added software fees. Crucially, Square charges no extra fees for non-UK cards or PCI compliance checks.

SumUp Solo Lite

SumUp Solo Lite offers a low-cost, contract-free payment solution designed for sole traders and mobile services. Featuring a competitive 1.69% flat transaction rate and a £22.50 hardware cost, it provides a simple touchscreen interface to process card payments reliably on the go.

• Transaction Fee: 1.69% flat rate
• Monthly Fee: £0
• Hardware Cost: £22.50 + VAT
• Settlement Speed: 1–3 business days (Next-day settlement with SumUp Business Account)
• Specialised In: Budget-conscious sole traders, trade services, and outdoor market vendors

This ultra-compact touchscreen card reader accepts contactless, Chip & PIN, Apple Pay, and Google Pay with zero fixed commitments. Its pay-as-you-go model ensures small businesses only pay processing fees when actively making sales.

SumUp Payments Plus

SumUp Payments Plus is a subscription-based payment tier designed for mid-volume UK businesses. By charging a £19 monthly subscription fee, it drops transaction fees down to 0.99%, delivering significant long-term processing savings once monthly sales exceed roughly £2,700.

• Transaction Fee: 0.99% flat rate
• Monthly Fee: £19.00 / month (cancel anytime)
• Hardware Cost: £22.50 + VAT (or £79 + VAT for standalone SumUp Solo)
• Settlement Speed: Next day
• Specialised In: Mid-tier businesses processing £3,000–£8,000 monthly seeking to drop fee percentages below 1%

This tier cuts transaction costs nearly in half without locking you into long-term bank agreements.

It includes access to a free SumUp business account, next-day payouts, and built-in invoicing tools.

Revolut Reader

The Revolut Reader delivers market-leading transaction pricing for tech-forward small businesses and cross-border traders. Offering domestic processing at just 0.80% + 2p, it provides rapid 24-hour settlement directly into a Revolut Business multi-currency account.

• Transaction Fee: 0.80% + £0.02 (UK consumer debit/credit cards)
• Monthly Fee: £0
• Hardware Cost: £49.00 + VAT
• Settlement Speed: 24 hours into a Revolut Business account
• Specialised In: High average order values (AOVs), cross-border traders, and tech-focused SMEs

Combines an ultra-low domestic transaction percentage with deep integration into Revolut’s multi-currency account architecture. The terminal supports custom tipping, digital receipts, and fast customer checkout while simplifying foreign currency management.

PayPal / Zettle Reader 2

Zettle Reader 2 by PayPal connects physical pop-up sales directly to online stores. Featuring a flat 1.75% transaction fee and instant fund transfers into PayPal balances, it is the top choice for omnichannel retailers needing robust hardware accessories.

• Transaction Fee: 1.75% flat rate
• Monthly Fee: £0
• Hardware Cost: £29.00 + VAT (for first reader)
• Settlement Speed: Instant transfer to PayPal account balance
• Specialised In: Omni-channel sellers running online stores alongside physical pop-ups

Directly synchronizes physical sales data with online PayPal balances for streamlined reporting and bookkeeping.

Supported by an extensive ecosystem of point-of-sale accessories, including heavy-duty dock stations, cash drawers, and barcode scanners.

myPOS Go 2

Designed for cash-flow sensitive businesses, myPOS Go 2 delivers instant payouts within three seconds of every sale. Operating via a built-in 4G SIM with no monthly contract fees, it is ideal for mobile tradespeople and taxi drivers.

• Transaction Fee: 1.10% + £0.07 per transaction
• Monthly Fee: £0
• Hardware Cost: £29.00–£39.00 + VAT
• Settlement Speed: Instant payouts (funds cleared within 3 seconds)
• Specialised In: Taxis, mobile technicians, and tradespeople who need immediate cash flow

Features a pre-installed unlimited 4G SIM card that eliminates the need to pair a smartphone or connect to local Wi-Fi networks.

Funds clear instantly into a free accompanying myPOS business account and VISA debit card, granting immediate access to cash.

Barclaycard Smartpay Anywhere

Barclaycard Smartpay Anywhere combines high-street banking reliability with pay-as-you-go flexibility. Offering a competitive 1.60% transaction rate and free accounting software integrations, it gives small high-street businesses fixed-rate stability without recurring monthly reader hire charges.

• Transaction Fee: 1.60% flat rate
• Monthly Fee: £0
• Hardware Cost: £29.00 + VAT
• Settlement Speed: Next business day into any UK bank account
• Specialised In: Established small businesses wanting high-street banking security without fixed monthly contracts

Backed by one of the UK’s primary merchant acquirers, providing stable next-day payouts to any existing bank account.

Includes complimentary access to FreshBooks accounting tools and unified sales tracking dashboards covering both in-person and digital invoice payments.

Tide Card Reader

The Tide Card Reader provides small business account holders with ultra-low processing rates starting at 0.89% + 3p. It simplifies back-office administration by automatically syncing card transaction data directly into Tide’s automated business bookkeeping system.

• Transaction Fee: 0.89% + £0.03 per transaction
• Monthly Fee: £0 on basic plan (optional £12.99 plan for higher perks)
• Hardware Cost: £49.00–£99.00 + VAT
• Settlement Speed: 1–3 business days
• Specialised in: Small businesses and freelancers utilizing Tide for business banking and automated bookkeeping

Integrates seamlessly into the Tide business banking mobile application to automate financial management.

Incoming card transactions are automatically categorized for tax and expense auditing, saving freelancers and small business owners hours of manual accounting work.

Tyl by NatWest (Pocket)

Tyl by NatWest Pocket provides high-volume retailers with bespoke interchange-plus pricing to drop card fees well below standard pay-as-you-go rates. Backed by NatWest, it delivers same-day fund settlements and in-depth business analytics.

• Transaction Fee: Custom / Bespoke (typically 0.5%–1.2% + fixed pence)
• Monthly Fee: £0 for first 3 months, then £13.99 + VAT per month
• Hardware Cost: Included in rental contract
• Settlement Speed: Next business day (same-day payout for NatWest account holders)
• Specialised In: High-street shops and hospitality venues turning over £8,000+ per month

Tailored specifically for established businesses taking over £8,000 monthly to drastically reduce transaction processing overheads.

Includes a detailed online portal that tracks peak trading hours, customer retention trends, and dedicated UK-based phone support.

Dojo Go / Pocket

Dojo Go / Pocket is a premium payment solution built for fast-paced hospitality and retail venues. Featuring rapid two-second transaction speeds, 10:00 AM daily settlements, and custom interchange rates, it seamlessly integrates with major Electronic Point of Sale systems.

• Transaction Fee: Custom (typically ~0.4%–0.9% debit card fees)
• Monthly Fee: £20.00 + VAT per month
• Hardware Cost: Included in service lease
• Settlement Speed: Next-day payout at 10:00 AM (including weekends)
• Specialised In: High-turnover restaurants, bars, and retail shops requiring fast EPOS integration

Processes contactless payments in under two seconds while maintaining continuous connectivity via built-in 4G cellular backup.

Settles earnings by 10:00 AM seven days a week and integrates directly with modern EPOS software to prevent manual entry errors.

How Much Does a Card Payment Machine Actually Cost in the UK?

The overall cost of running a card reader involves three distinct pricing layers:

1. Upfront Hardware Costs: The outright purchase price of the reader. Entry-level smartphone dongles start from £19 to £49 + VAT, while touchscreen smart terminals cost £129 to £299 + VAT.
2. Monthly Terminal Fees: Pay-as-you-go providers charge £0/month. Traditional merchant accounts charge £13.99 to £29.99 + VAT/month for hardware leasing and terminal maintenance.
3. Transaction Processing Fees: A percentage (plus optional fixed pence) charged on every sale:
   • Pay-As-You-Go Rates: 1.60% to 1.75% flat rate.
   • Fixed Subscription Rates: 0.80% to 0.99% + fixed pence.
   • Custom Merchant Account Rates: 0.3% to 0.8% (interchange-plus model).

Cost Comparison by Processing Volume

Monthly Sales Volume	Cheapest System Type	Example Provider	Total Estimated Monthly Cost
£1,000	Pay-As-You-Go (£0 monthly fee)	Square Reader 2 (1.75%)	£17.50
£5,000	Subscription Model	SumUp Payments Plus (£19 fee + 0.99%)	£68.50
£15,000	Custom Merchant Contract	Tyl by NatWest (~0.7% + £13.99 fee)	£118.99

How to Compare and Choose the Cheapest Card Payment Machine for Business?

To choose the best card reader, evaluate your business operations across four key criteria:

1. Match Your Choice to Your Monthly Turnover

• Under £2,000/month: Stick strictly to Pay-As-You-Go readers (Square, SumUp Solo Lite, or myPOS Go 2). Fixed monthly fees will eat up your margins during quiet trading months.
• £3,000 to £8,000/month: Choose Low-Rate Subscription or Low-Percentage hardware (SumUp Payments Plus or Revolut Reader).
• Over £10,000/month: Request bespoke quotes for Interchange-Plus Merchant Contracts (Tyl, Dojo, Teya). At this volume, dropping fees from 1.75% to 0.5% saves over £1,500 per year.

2. Evaluate Contract Terms vs. Flexibility

• No-Contract (Rolling): Ideal for new businesses, pop-ups, and seasonal sellers. You can stop taking payments at any time without early cancellation fees.
• Fixed Contracts (12–36 months): Offer lower per-transaction processing charges but bind you to ongoing rental payments even if sales drop.

3. Check Settlement Speeds & Connectivity

• Cash Flow Needs: If you rely on immediate funds to buy stock, choose providers offering instant or same-day payouts (myPOS, PayPal/Zettle, or Revolut). Standard bank payouts take 1–3 working days.
• Location & Mobility: Mobile traders and event vendors should look for standalone readers with built-in 4G SIM cards (e.g., myPOS Go 2 or SumUp Solo) to avoid relying on unstable public Wi-Fi.

Can You Charge Customers Extra for Card Payments in the UK?

No, it is strictly illegal in the UK to charge customers a surcharge or extra fee for paying by debit card, credit card, or digital wallets like Apple Pay and Google Pay.

Under the Consumer Rights (Payment Surcharges) Regulations, which enforced EU Payment Services Directive (PSD2) rules into UK law, businesses of all sizes cannot pass merchant transaction costs onto end consumers.

Whether accepting a £2 coffee or a £2,000 trade invoice, the price presented to the customer must remain identical regardless of their payment method.

Compliance Rule	Legal Status	Description
Direct Surcharging (e.g., +50p for card payment)	ILLEGAL	Under UK payment regulations, businesses cannot charge extra fees to consumers for paying by debit card, credit card, Apple Pay, or Google Pay.
Minimum Spend Limits (e.g., £5 card minimum)	LEGAL (Discouraged)	Setting a minimum transaction threshold is legally permitted, though major card networks (Visa/Mastercard) discourage the practice in merchant agreements.
Base Price Adjustments (e.g., raising menu/shelf prices)	LEGAL	Merchants are free to increase general item prices across the board to absorb processing fees into standard operational overheads.

While direct surcharging is prohibited, small business owners retain two legal methods to protect operating margins:

• Setting Minimum Spend Thresholds: Merchants are legally allowed to set minimum transaction limits for card payments (e.g., £5 minimum spend for card payments). However, major card networks like Visa and Mastercard discourage this practice in their merchant service agreements, and it can alienate consumers carrying no cash.
• Adjusting Base Prices: Businesses can legally raise base menu or shelf prices across all items to absorb transaction charges into overall operational costs.

What Hidden Fees Should You Avoid When Buying a Card Payment System?

When evaluating payment terminal options, focusing solely on headline transaction percentages often masks secondary charges that quietly erode profit margins.

Critical Processing Costs to Audit Before Signing

• PCI DSS Compliance Fees: Traditional merchant banks often charge £5 to £15 monthly for Payment Card Industry Data Security Standard compliance testing. Failure to submit mandatory annual self-assessment questionnaires can trigger non-compliance penalties of £25 to £50 per month.
• Authorisation Charges: Fixed fees (typically 1p to 4p) charged on every transaction attempt, regardless of whether the card payment is approved, declined, or canceled.
• Commercial and Foreign Card Surcharges: While domestic consumer debit cards incur low processing rates, payments made using premium commercial purchasing cards or business credit cards and international cards (e.g., US Visa/Mastercard) frequently trigger additional fees ranging from 2.5% to 3.5% + fixed charges.
• Next-Day and Instant Settlement Fees: Pay-as-you-go providers standardly clear funds into external bank accounts within 1 to 3 working days. Requesting instant fund transfers can incur extra processing surcharges (e.g., Square charges 1.5% for instant payouts, whereas myPOS and SumUp offer free instant payouts only if using their proprietary business accounts).
• Early Termination Penalties: Long-term 12-to-36-month terminal contracts from legacy suppliers frequently carry heavy liquidated damages clauses if you cancel service early.

Conclusion

Choosing the right payment terminal comes down to matching your monthly sales against ongoing hardware and transaction charges.

1. If taking under £2,000 monthly: Purchase an outright, contract-free card reader like the Square Reader 2 or SumUp Solo Lite to eliminate recurring monthly fixed costs.
2. If taking £3,000 to £8,000 monthly: Upgrade to a low-rate subscription framework like SumUp Payments Plus or purchase a low-percentage reader like Revolut Terminal Lite to drop processing fees below 1%.
3. If taking over £10,000 monthly: Request tailored Interchange-Plus quotes from contract providers like Tyl by NatWest or Teya to secure transaction rates under 0.8%.

Disclaimer: Information and transaction rates are correct at the time of publication; please verify current pricing directly with payment providers.

FAQ

What is the cheapest card reader transaction fee in the UK?

The lowest transaction fees for high-volume businesses start around 0.3%–0.7% on custom merchant contracts (e.g., Teya or Tyl). For no-contract pay-as-you-go models, Revolut Terminal Lite offers market-leading domestic rates from 0.8% + 2p.

Which card machine has no monthly fees?

The Square Reader 2, SumUp Solo Lite, myPOS Go 2, and Revolut Terminal Lite charge zero monthly subscription or terminal hire fees. You only pay a percentage fee when you successfully process a payment.

Is there a minimum spend limit on card machines in the UK?

No. There is no legal minimum transaction size in the UK, though merchants may choose to set their own (e.g., £5). However, major card networks discourage this practice in their merchant agreements.

Do I need a separate merchant bank account to use a cheap card reader?

No. Modern aggregator systems like Square, SumUp, and Zettle process funds through their own master merchant accounts and deposit payouts directly into your existing UK business or personal bank account.

Are credit card fees higher than debit card fees in the UK?

Yes. Consumer debit card transactions carry lower interchange fees under UK law. Commercial credit cards, corporate payment cards, and non-UK international cards carry higher processing charges from card issuing networks.

Can I buy a card payment machine outright instead of renting?

Yes. Mobile card readers like the Square Reader 2 (£19 + VAT) or SumUp Solo (£79 + VAT) are purchased outright. Once purchased, you own the hardware permanently without ongoing device hire fees.

What happens if my card machine loses Wi-Fi connection?

Devices with built-in multi-network 4G SIM cards (such as the myPOS Go 2 or SumUp Solo) automatically switch to cellular data. Alternatively, mobile app readers route payments over your smartphone’s 4G/5G data network.