How much does a card machine cost for a small business? (UK)

The short answer

What a card machine costs depends on how much you take, how big your average sale is, the type of cards your customers use and the provider you choose. Most quotes combine a percentage of each sale, a small fixed fee per payment, a monthly charge for the terminal and a handful of other fees. The total only makes sense once you add them all together for your own business.

This guide explains each cost in general terms, so you can read any quote or statement with confidence. It does not give prices, because the honest answer is that they vary.

The costs on a typical card machine quote

1. A percentage of each sale

This is the main charge. It is a percentage of the value of each card payment, and it usually depends on the type of card:

• UK consumer debit cards: usually the cheapest.
• UK consumer credit cards: usually a little higher.
• Business, corporate and non-UK cards: usually higher again.

Part of this percentage is made up of costs the provider does not control: interchange, paid to the bank that issued the card, and scheme fees, paid to Visa, Mastercard and the other card schemes. For payments in the UK with UK consumer cards, UK law caps interchange at 0.2% for debit and 0.3% for credit. Other cards, such as business, corporate and many overseas cards, cost more. The remainder is the provider's margin, and that is the part that differs between quotes.

2. A fixed fee on every payment

Many providers add a small fixed amount to each transaction. It looks tiny, but it matters most on small sales. As an illustration only, not a quote from any provider: a 5p fixed fee (an example figure, not PayZu's price) on a £4 sale works out at 1.25% on its own, while the same 5p on a £40 sale is 0.125%. If most of your sales are small, give this fee as much attention as the percentage.

3. The terminal itself

Providers handle the card machine in different ways. Some charge a monthly rental, some ask for an upfront payment and some include the device in the price. Whichever applies, check what is covered: the charging dock, a 4G SIM, paper rolls, support and a replacement if it breaks. Our card machine rental guide lists what to check.

4. PCI compliance

PCI compliance is the card industry's security standard. Some providers charge a monthly PCI fee, and some add a further charge if you do not complete a yearly questionnaire. Others charge nothing. PayZu charges zero PCI fees. See our guide to PCI compliance for card machines.

5. Other charges to look for

• Minimum monthly service charge: a top-up you pay if your fees fall below a set amount in a quiet month.
• Authorisation or gateway fees: charged per payment and listed separately from the main rate.
• Chargeback fees: charged when a customer disputes a payment.
• Set-up, annual or statement fees: one-off or regular admin charges.
• Exit fees: what it costs to leave a provider early.

Why two quotes with the same headline rate can cost very different amounts

A quote built around a low percentage can still cost more once a high per-payment fee, a monthly PCI fee, a minimum charge and the terminal cost are added. A quote with a slightly higher percentage and no extras can come out cheaper. The only reliable test is to calculate what each one would have cost you last month.

What to compare, step by step

1. Take a recent statement and note your monthly card takings and your number of card payments.
2. Work out your average sale: takings divided by number of payments.
3. Apply each quote's percentage to your takings, split by debit and credit if you can.
4. Add the per-payment fee multiplied by your number of payments.
5. Add the terminal cost and every monthly or annual fee, including PCI, minimum charges and anything on the small print.
6. Compare the totals, then check exit fees.

Our card machine fees guide goes through each line in more detail. If you would rather not do the sums, send us your statement and we will do it for you, showing what you pay now and what you could pay with us. Some businesses could save up to 50% on some fees, and if you are already on a great deal we will tell you straight.

Is the cheapest card machine always the best?

Not always. Price matters, but so do the things a price does not show: how quickly you get support when the machine stops working, whether the terminal suits how you trade (countertop, portable or mobile) and how clearly the provider explains its fees. Compare the total cost first, then check these.

Common questions about card machine costs

Related

• PayZu pricing
• Card machine fees explained
• Card machine rental: what to check
• PCI compliance for card machines
• How to switch card machine provider
• How to read your card machine statement
• Card fees calculator