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A card machine looks like a simple purchase until you see the fees. This guide explains why taking cards matters more than ever, the types of machine, how the fees are really built, what the costs typically look like in 2026, and how to compare providers so you keep more of every sale.
In short. Card machines come in three formats: countertop, portable and mobile. Your real cost is transaction fees plus hardware and any monthly charges, not the headline rate. Contactless is now around 76 percent of debit card payments, and because interchange is capped by law, providers mainly compete on their own margin.
Card acceptance has moved from a nice to have to a basic expectation. Contactless now accounts for around 76 percent of debit card transactions and 66 percent of credit card transactions in the UK, and shoppers increasingly walk away if they cannot tap. With billions of card payments made every month, a business that only takes cash is quietly turning custom away.
Which machine suits you depends on where and how you take payment.
Countertop. Plugs into power and broadband at the till. Best for shops and fixed counters.
Portable. Connects over Wi-Fi or Bluetooth around the premises. Best for restaurants and cafes.
Mobile. Runs on mobile signal and works anywhere. Best for market stalls, tradespeople and events.
There is also a newer option: tap to pay on a phone, which turns a compatible smartphone into a contactless reader with no separate hardware. It suits very small or occasional traders, though a dedicated machine is sturdier for regular use.
The rate a provider advertises is only the top layer. Every card payment carries three underlying costs.
Interchange. Paid to the customer's bank. UK rules cap this at 0.2 percent for consumer debit and 0.3 percent for consumer credit on domestic transactions.
Scheme fees. Paid to Visa or Mastercard for running the network.
Acquirer margin. Your provider's own cut, and the part that varies most between deals.
Because interchange is fixed by law, the difference between a cheap and an expensive provider is mostly their margin and how they structure it, which is exactly the part you can compare and negotiate.
Providers price in one of two ways, and the choice makes a real difference to your bill.
Blended. One flat rate on every transaction. Easy to read and predictable, but it hides how much margin you pay.
Interchange plus. Interchange and scheme fees passed through at cost, plus a fixed margin. More transparent and often cheaper at volume, because you benefit directly from the capped interchange rather than a rounded up flat fee.
Figures vary by provider and your card mix, but as a rough guide in 2026, entry level flat rate readers charge around 1.5 to 1.75 percent per transaction, with no monthly fee and a low cost reader to buy. Traditional merchant accounts quote lower headline rates but often add monthly fees, terminal rental, minimum charges and PCI fees.
The headline percentage alone tells you very little. A 1.4 percent rate with 20 pounds of monthly fees can cost a small trader more than a 1.6 percent rate with none.
Say you take 8,000 pounds a month in card sales. At a flat 1.6 percent you pay about 128 pounds a month in transaction fees. At 1.75 percent you pay about 140 pounds. The gap looks small, until you add terminal rental or monthly fees on one deal and not the other, which is where the real difference usually hides.
When you line up quotes, look past the headline percentage at the full set of charges.
Transaction fee. A percentage of each sale, sometimes plus a few pence per transaction.
Hardware. A one off purchase or an ongoing rental.
Monthly fees. Some providers charge a fixed monthly or minimum service fee.
PCI compliance. A charge some providers add for meeting card security standards. Ask whether it applies to you.
Line every quote up against the same checks so you are comparing like for like.
✓ All fees disclosed: transaction, hardware, monthly and PCI.
✓ A contract length and notice period you are comfortable with.
✓ Fast settlement, ideally next working day.
✗ A low headline rate with fees buried in the small print.
✗ A long rental tie in for hardware you could buy cheaply.
Buying a reader outright often works out better if you take card payments regularly, because rental adds up quietly over a multi year contract. Entry level mobile readers are now inexpensive to buy, which has changed the maths for many small businesses. Renting can still suit very low volume or seasonal traders who want to avoid any upfront cost.
Card processing contracts can run for several years, with notice periods and hardware rental tie ins. Before signing, check the length, the notice period to leave, whether the reader is bought or rented, and any early exit fees. Short or rolling contracts give you room to move if a better deal appears.
Compare the total yearly cost, transaction fees plus hardware plus monthly charges, not the advertised percentage alone.
It varies by provider and card type, but the headline percentage matters less than your total cost once hardware and monthly fees are included. Always compare the full picture.
Interchange is the part of the fee paid to the customer's bank. UK rules cap it at 0.2 percent for consumer debit and 0.3 percent for consumer credit on domestic payments, so it is the same for every provider.
Not always. Some providers bundle everything into one account, while others require a separate merchant account. The bundled route is usually simpler for smaller businesses.
Settlement times differ. Some providers pay out the next working day, others take longer, so check this before you commit.
Yes, though check your current contract for notice periods and any hardware rental you are still tied into before you move.