A credit card terminal for a small business is a hardware choice inside an account decision. Published hardware runs from 11 pounds plus VAT to 179 pounds excluding VAT. Published account rates run from 0.79% to 1.75%. On 3,000 pounds a month of card takings the rate spread is worth about 29 pounds a month, or several terminals a year.
Cheap terminals and where they cost you
The cheapest terminals are Bluetooth readers that depend on a phone. That is fine at a counter and a false economy for anyone trading outdoors, in a vehicle or at a customer's door, where a phone with no signal means no sale. The 30 to 50 pound step to a standalone machine buys reliability, not features.
The account behind the terminal
Ask for the in-person rate, the rate for commercial and non UK cards, any fixed pence element, the minimum monthly charge, and the term. Eleven of the thirty two UK providers read for this index publish the first of those; the rest require a call. Getting all five in writing is what turns a shortlist into a comparison.
When to rent instead
If a provider's rental buys a materially lower percentage and you expect to stay, renting can be cheaper. Elavon prints 15 pounds a month for a desk terminal and 18 pounds for a mobile one against a rate roughly two fifths lower than its entry plan. Whether that pays depends entirely on your monthly card takings, so run the numbers.
Questions people ask about credit card terminals for small business
What is the cheapest credit card terminal for a small business?
On hardware, Tide's Nano at 11 pounds plus VAT, and Elavon's entry plan carries a five pound one-off device cost. On running cost, the account rate matters far more than the terminal price.
Are cheap credit card terminals worth buying?
At a counter, yes. Away from one, a cheap Bluetooth reader that depends on a phone will cost you sales, and a standalone terminal from 39 pounds excluding VAT is the better spend.
Should a small business rent or buy a terminal?
Buy if the rate is the same either way or you may switch. Rent if the rental genuinely buys a lower percentage and your volume makes the saving larger than the monthly fee.