The best card machines for UK small businesses in 2026 combine low transaction fees, no long-term contract tie-in, and fast next-day payouts. Pay-as-you-go readers like SumUp and Square suit low-volume traders with fees from 1.69%-1.75% per tap, while contract terminals from Dojo, Worldpay and Verifone offer lower per-transaction rates (from 1.4%) once turnover justifies a monthly fee.
With more than a dozen providers now competing for UK SME custom - from challenger fintechs to legacy bank-backed terminal suppliers - choosing the wrong card machine can cost hundreds of pounds a year in unnecessary fees or lock you into a contract that no longer fits your business. This guide compares upfront costs, ongoing fees and contract terms so you can pick the right fit with confidence.
Who Is This Page For?
This guide is for UK small business owners, sole traders, market stallholders, and hospitality or retail operators who want to accept card payments and need to compare card machine providers, fees, and contract terms before committing. It is especially useful if you are:
- Starting out and looking for the cheapest way to accept card payments with no monthly fee
- An existing business whose current terminal contract is coming up for renewal
- A seasonal or mobile trader weighing up a portable card machine against a countertop terminal
- A growing SME whose card turnover now exceeds £3,000–£5,000 a month and wants lower interchange-plus rates from providers like Dojo or Worldpay
- Anyone wanting an independent, unbiased comparison rather than a sales pitch from a single provider
Compare Card Fees is a free, independent advisory service that has helped UK businesses find better card payment deals since 2012.
Key Facts: UK Card Machines at a Glance (2026)
| Fact | Detail |
|---|---|
| Lowest pay-as-you-go transaction fee | 1.69% per transaction (SumUp Air, all UK card types) |
| Lowest contract transaction fee | From 1.4% per transaction (Dojo, Handepay — qualifying businesses) |
| Typical monthly fee range | £0 (pay-as-you-go) to £40 (contract terminals, e.g. Worldpay, Takepayments) |
| Typical contract lengths | None (SumUp, Square, Zettle) to 12–48 months (Handepay, Verifone, Takepayments) |
| Settlement / payout speed | Next business day (Dojo, Square, SumUp); 2–3 working days (some legacy bank terminals) |
| Regulatory oversight | All major UK providers regulated or registered with the Financial Conduct Authority (FCA) |
| Hardware cost range | £0 (free reader promotions) to £300+ for standalone countertop terminals |
Key Takeaways
- Pay-as-you-go readers like SumUp (1.69% per transaction) and Square (1.75% per transaction) suit low-volume traders with no monthly fee; contract terminals from Dojo, Worldpay and Verifone offer lower rates (from 1.4% per transaction) once turnover justifies the monthly cost.
- Contract terminals typically charge £15-£40 a month plus terminal rental, on top of the transaction fee.
- Traditional providers such as Takepayments and Handepay often require 12-48 month agreements - check early termination fees before signing.
- Compare Card Fees is a free, independent comparison service that has helped UK businesses compare providers and cut card processing costs since 2012, working with over 90% of the UK's leading acquiring banks - no hard selling, no data sold on.
Compare Card Machines And Card Readers: At a Glance
| Provider | Best For | Transaction Fee | Monthly Fee | Contract | Rating /5 |
|---|---|---|---|---|---|
| Low-volume & new businesses | 1.69% per transaction | £0 | None - pay as you go | 4.4 | |
| Retail and hospitality startups | 1.75% per transaction | £0 | None - pay as you go | 4.5 | |
| PayPal-integrated sellers | 1.75% per transaction | £0 | None - pay as you go | 4.2 | |
| Growing SMEs wanting low rates | From 1.4% + 5p per transaction | From £20 | Rolling monthly available | 4.6 | |
| Businesses already banking with Revolut | From 1.5% per transaction | From £0 | Rolling monthly | 4.3 | |
| Established multi-site businesses | From 1.5% per transaction | From £15 | 12-36 months | 4.0 | |
| Hardware-led terminal contracts | From 1.6% per transaction | From £15 | 12-48 months | 3.9 | |
| Businesses wanting bundled hardware + support | From 1.5% per transaction | From £19.99 | 12-36 months | 3.7 | |
| High street shops and salons | From 1.4% per transaction | From £19.99 | 12-48 months | 3.8 | |
| Existing Barclays business banking customers | From 1.6% per transaction | From £19.90 | Rolling and fixed options | 4.0 | |
| Small hospitality & retail, no long contract | 1.49%-2.99% per transaction | £0 (standard plan) | No fixed term | 3.8 |
Top Card Machines And Card Readers Reviewed
SumUp
SumUp remains one of the most popular entry points for UK sole traders and market stallholders thanks to its £39 Air reader and complete absence of monthly fees. It is straightforward to set up and works well for anyone testing card payments for the first time without committing to a contract.
- No monthly fee or contract
- Cheap upfront hardware from £39
- Simple app-based setup, no bank account needed
- 1.69% flat fee becomes costly at higher volumes
- Limited advanced EPOS integrations
Transaction fee: 1.69% per transaction (all UK card types)
Square
Square offers some of the best card reader UK options for hospitality and retail businesses, with free-to-£19 hardware and a polished point-of-sale ecosystem. It is particularly strong for businesses that want inventory, staff management and online ordering built in.
- Free or low-cost reader options
- Excellent POS and inventory software
- Fast next-business-day payouts
- 1.75% per transaction fee is slightly higher than some rivals
- Customer support can be slow at peak times
Transaction fee: 1.75% per transaction (all UK card types)
Dojo
Dojo has built a strong reputation among growing UK SMEs for combining competitive interchange-plus pricing with genuinely flexible rolling contracts. Its terminals are fast and reliable, making it a good fit for businesses moving beyond a basic portable card machine UK setup.
- Rates from 1.4% + 5p per transaction suit higher volumes
- No long lock-in with rolling monthly plans
- Strong customer support reputation
- Monthly fee from £20 not ideal for very low volume
- Requires application and approval process
Transaction fee: From 1.4% + 5p per transaction
Zettle by PayPal
Zettle suits businesses already using PayPal for online sales, offering matching flat-rate pricing and quick fund transfers into a linked PayPal balance. It is a solid pay-as-you-go option but lacks some of Square's deeper retail features.
- Seamless PayPal account integration
- No monthly fees or contracts
- Affordable card reader hardware
- 1.75% per transaction fee is uncompetitive at scale
- Fewer EPOS integrations than Square
Transaction fee: 1.75% per transaction (all UK card types)
Revolut
Revolut's card machine offering appeals to business owners already using Revolut Business banking, with competitive rates and no mandatory monthly fee on entry-level plans. It is a strong contender for tech-savvy small businesses wanting everything in one app.
- Rates from 1.5% per transaction with no monthly fee tier
- Instant integration with Revolut Business accounts
- Modern app and reporting dashboard
- Best value tied to using Revolut banking
- Newer to UK card machines than legacy rivals
Transaction fee: From 1.5% per transaction
Worldpay
Worldpay is a long-established name in UK card machine small business UK terminals, offering competitive interchange-plus rates for businesses with consistent turnover. It suits multi-site retailers needing reliable, bank-grade infrastructure.
- Competitive rates from 1.5% per transaction at volume
- Reliable, well-established infrastructure
- Wide range of terminal hardware options
- Contracts typically 12-36 months
- Less flexible for very small or seasonal businesses
Transaction fee: From 1.5% per transaction
Handepay
Handepay is a familiar face on the UK high street, offering bundled terminal packages with dedicated account management for shops, salons and cafes. Rates are competitive but contracts require careful review before signing.
- Rates from 1.4% per transaction for qualifying businesses
- Dedicated local account support
- Bundled hardware and software packages
- Contracts up to 48 months are common
- Early exit fees can be significant
Transaction fee: From 1.4% per transaction
Teya
Teya is a fast-growing UK card machine provider aimed at small hospitality and retail businesses that want a modern Android terminal without signing a long-term contract.
- From 1.49% per transaction on UK debit cards with no compulsory monthly fee
- No fixed-term contract, rolling monthly instead
- Modern Android terminal with native tipping and pay-by-link
- Blended pricing can cost more than interchange-plus at higher volumes
- Shorter track record than established acquirers like Worldpay
Transaction fee: From 1.49% per transaction
Frequently Asked Questions
What is the best card machine for small businesses in the UK?
The best card machine for most UK small businesses in 2026 is either SumUp Air (1.69% per transaction, no monthly fee) for low volumes or Dojo (from 1.4% + 5p per transaction, from £20 a month) for growing businesses. The right choice depends on your monthly card turnover, whether you need a contract, and how important next-day settlement is to your cash flow.
How much does a card machine cost?
A card machine in the UK costs between £0 and £300+ upfront depending on the provider and hardware type. Pay-as-you-go readers like the SumUp Air cost around £39 and Zettle Reader around £29, while countertop contract terminals from Worldpay or Handepay are often provided as part of a monthly rental agreement ranging from £15 to £40 a month.
What are the monthly fees for card machines for UK small businesses?
Monthly fees for UK card machines range from £0 for pay-as-you-go providers like SumUp, Square and Zettle, up to £40 a month for contract terminals from providers like Worldpay, Handepay and Takepayments. Contract providers typically charge £15–£40 a month on top of the per-transaction fee, so the monthly cost only makes financial sense once your card turnover is consistently above £3,000–£5,000 a month.
What are the top-rated card machines for small businesses in the UK?
The top-rated card machines for UK small businesses in 2026 are Square (rated 4.5/5), Dojo (4.6/5), SumUp (4.4/5), Revolut (4.3/5) and Zettle by PayPal (4.2/5). Dojo scores highest among contract providers for its combination of low rates from 1.4% + 5p per transaction and flexible rolling monthly contracts with no long lock-in.
What is the best card reader to buy?
The best card reader to buy for most UK small businesses is the SumUp Air at £39 if you want no contract and no monthly fee, or the Square Reader (free with a Square account) if you also need POS software for retail or hospitality. Both accept contactless, chip-and-PIN, and mobile payments including Apple Pay and Google Pay.
What is the cheapest card machine?
The cheapest card machine overall is the Square Reader, which is free when you sign up for a Square account, charging only 1.75% per transaction with no monthly fee. If you prefer to buy outright, the SumUp Air at £39 with a 1.69% per transaction flat rate is the most affordable paid option with no ongoing costs.
What is the cheapest way for a small UK business to accept card payments?
The cheapest way for a small UK business to accept card payments is a pay-as-you-go reader from SumUp (1.69% per transaction) or Square (free reader, 1.75% per transaction), both with no monthly fee and no contract. For businesses taking more than £5,000 a month in card payments, switching to an interchange-plus contract with Dojo from 1.4% + 5p per transaction will typically work out cheaper despite the £20+ monthly fee.
How do portable card machines compare to traditional countertop readers in terms of fees and reliability?
Portable card machines like the SumUp Air and Square Reader charge flat rates of 1.69%–1.75% per transaction with no monthly fee, while traditional countertop terminals from Worldpay or Handepay offer lower interchange-plus rates from 1.4% per transaction but require monthly fees of £15–£40 and contracts of 12–48 months. Portable readers are more flexible and cheaper for low volumes; countertop terminals deliver better value at higher turnover and typically offer faster, more reliable connectivity for busy fixed locations.
Do I need a contract to get a card machine in the UK?
No, you do not need a contract to get a card machine in the UK. Many UK card machine providers now offer flexible, contract-free options, particularly mobile and cloud-based solutions like SumUp and Square. However, traditional terminal providers such as Worldpay, Handepay and Takepayments may still require 12–48 month contracts with early termination fees, so it is essential to check the specific terms before committing.
How to Choose the Right Card Machines And Card Readers for Your Business
Transaction volume is the single biggest factor in choosing between a pay-as-you-go reader and a contract terminal. Businesses taking under roughly £3,000-£5,000 a month in card payments typically save money with a no-monthly-fee reader like SumUp or Square, since the flat 1.69%-1.75% per transaction rate outweighs any monthly charge. Once turnover consistently exceeds this level, the lower interchange-plus rates from Dojo, Worldpay or Handepay usually work out cheaper despite the monthly fee, so it is worth running the numbers against your actual average ticket size.
Contract flexibility matters just as much as headline rates. Pay-as-you-go providers let you stop using the device at any time with no penalty, which suits seasonal traders, market stalls and businesses still testing demand. Traditional merchant services contracts from Takepayments, Handepay and Verifone lock you in for 12–48 months, so always check early termination clauses and what happens to the terminal rental if you close or switch providers.
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