There are two phone routes. A small reader that pairs to your phone by Bluetooth and uses its connection, published from 11 pounds plus VAT. Or tap to pay, where the phone itself is the reader and no hardware is needed at all. The first takes chip and PIN; the second is contactless only.
A credit card machine for phone pairing, versus phone only
A paired reader adds a keypad and a proper card slot, so it completes sales the phone alone cannot. It also adds a second battery and a pairing that only holds one device at a time. Phone only is free of hardware and limited to contactless. Most businesses that start phone only buy a reader within a few months, usually after losing a large sale.
What each phone card payment route costs per sale
Tide prints a tap to pay rate and a card reader rate in the same table, and they are not the same number. Lopay's published schedule adds a per transaction charge for tap to pay. Everywhere else, the account rate applies whichever way the card is presented. Read the row that matches your method rather than the headline.
Practical limits of running a till on a phone
One device means one queue. Staff using the owner's phone is awkward the first time it rings mid sale. And a flat battery at four o'clock takes the takings with it. None of those is a reason not to start on a phone; all of them are reasons to buy a reader once the business is real.
Questions people ask about card machine for phone
Can my phone be a card machine?
On a supported recent phone, yes, through a provider offering tap to pay. It accepts contactless cards and wallets only, with no chip and PIN fallback.
Is a phone card machine cheaper?
In hardware, yes, since there is none. In running cost, not always: some providers price tap to pay on its own row and it is not automatically the cheaper option.
Which is better, a mobile phone chip and PIN machine or tap to pay?
A paired reader, which is how a mobile phone becomes a chip and PIN machine, if you take large sales or need chip and PIN. Tap to pay if your sales are small, contactless and occasional, and you would rather not carry hardware.