A credit card machine is a card terminal plus an acquiring account. Hardware on this shelf is published between 11 and 179 pounds. The account is published between 0.79% and 1.75% where it is published at all. For a small business the account is the expensive half: on 3,000 pounds of monthly card takings the gap between the cheapest and dearest published rate is about 29 pounds a month.
Three years, not three months
Terminals are bought once and accounts are paid for continuously, so compare over the term you expect to stay. A machine bought at 39 pounds on a 1.10% account costs about 435 pounds over three years at 3,000 pounds a month. The same takings on 1.75% costs about 1,930 pounds. No hardware discount closes a gap that size.
Contract length and what it costs to leave
The Payment Systems Regulator's card acquiring market review identified terminal contracts and early termination charges as what actually stops UK merchants switching. The app based providers here publish no minimum term. Traditional acquirers and resellers usually have one and the exit charge sits in the merchant agreement rather than on the pricing page. Ask for it in writing before signing.
What a cheap machine is usually cheap at
A low hardware price is often paired with a higher rate, a longer term or a monthly service fee that starts after an introductory period. Barclaycard prints exactly that shape: no monthly service fee for twelve months, then a stated monthly figure, and no transaction rate on the page at all. The offer is real and the second year is the number to compare.
Questions people ask about credit card machine for small business
What is the cheapest credit card machine for a small business?
On hardware, Tide's Nano at 11 pounds plus VAT. On the running rate, Lopay's Essential account at 0.79%. On total cost over a year the answer depends on your card takings, and for most small businesses the rate matters far more than the machine.
Can I get a credit card machine with no monthly fee?
Yes. SumUp, myPOS, Elavon's entry plan and Tide's Pay As You Go column each print a zero pound monthly fee beside their rate. The trade off is a higher percentage than the subscription plans charge.
Do credit card machines come with a contract?
It depends entirely on the provider type. App based providers here advertise no contract. Bank owned acquirers and resellers typically have a minimum term with an early termination charge, which is the switching cost the regulator has written about.