Taking card payments as a sole trader or new business
You do not need a limited company to take card payments. Here is what a sole trader or new small business needs, what the provider will check and how to choose a card machine.
The short answer: can a sole trader take card payments?
Yes. Sole traders can take card payments in the UK. You need a card machine or another way to capture payments, a card payment agreement with a regulated payment provider, a UK bank account for the money to be paid into and some identity and business details. The provider runs its own checks and decides whether to approve you.
Why sole traders and new businesses take cards
Many customers now carry little or no cash, and a card machine can make you look established from your first day. It also makes it easier to take payment on the spot, rather than waiting for a bank transfer. This applies whether you run a market stall, cut hair, fix boilers or sell from a van. For a wider look at every option, see our guide to how to take card payments.
What you need to start
- A way to capture payments. For face-to-face sales that is a card machine. You can also take payments by phone or by sending a payment link.
- A card payment agreement. This is the contract with the regulated payment provider that processes your payments and pays you. PayZu supplies, sets up and supports the terminals, and card payments are processed by our regulated payment partner, which you contract with.
- A UK bank account. The money from your card sales is paid into it. Ask your provider which accounts it accepts for a sole trader.
- Identity and business details. Expect to give your name, address, date of birth, what you sell, how you trade and roughly how much you expect to take on cards.
- Proof of ID. You may be asked for photo ID and, depending on the provider, proof of address.
The checks a provider will run
Regulated payment providers must know who they are dealing with, so every application involves checks. You should expect:
- Identity and address verification.
- A check on the business and what it sells.
- A credit or risk check, which can matter more for a brand-new business with little history.
Approval is always subject to the provider's decision and your circumstances. Having your details ready, being clear about what you sell and being honest about your expected card sales makes the process smoother. A new business can take payments, but the provider may look more closely at the application.
How to choose a card machine as a sole trader
The right machine depends on where you take payments. If you move around, a portable terminal with its own 4G SIM is usually the most practical. If customers pay at a counter, a countertop terminal suits better.
- PAX A920 Pro (portable): a built-in 4G SIM with Wi-Fi backup, a built-in receipt printer, a battery and a touchscreen. A good fit for tradespeople, mobile hairdressers, market traders and anyone taking payment away from a counter.
- PAX A35 (countertop): a compact terminal for a fixed counter that connects to your till or EPOS. A good fit for a small shop or a salon reception.
Both are rented from PayZu with £0 upfront and take contactless cards, Apple Pay and Google Pay. Our guide to choosing the best card machine for a small business goes through each type of trade.
Card machine or card reader for a sole trader?
If you are just starting and expect only a few card payments a month, a small card reader that pairs with your phone can work out cheaper. As card payments become a regular part of your takings, a card machine usually makes more sense. It has its own connection, prints receipts and does not tie up your phone. Our card machine vs card reader guide helps you work out which suits you.
Understand the costs before you sign
Ask any provider for the full picture in writing. The main items are the percentage on each card payment, any fixed fee per transaction, the monthly terminal rental, any other monthly charges (including PCI fees) and the length of the agreement with its exit terms. Our card machine fees guide shows how to add these up. PayZu charges zero PCI fees and has £0 upfront and zero hidden fees.
Do not forget the record-keeping
Card sales are taxable income like any other. Keep a record of your takings and of the fees you pay, so you can see them on your statements and report them correctly. A bookkeeping tool or an accountant can help, and our partner RS Accountancy Services offers MTD, bookkeeping and tax support.
A simple route to your first card payment
- Work out how you will take payments: at a counter, on the move, by phone or by link.
- Tell us about your business and what you expect to take on cards.
- We suggest a terminal and a quote, and you check the monthly cost and terms.
- You complete the application with your payment partner and provide your details and ID.
- Your terminal is set up and supported, and you can start taking payments once everything is approved and ready.
What PayZu offers
- £0 upfront, zero hidden fees, zero PCI fees
- Portable PAX A920 Pro and countertop PAX A35
- Your own account manager and 24/7 UK support
Rates are personalised to your business. Subject to eligibility, approval and status. T&Cs apply.
Sole traders and card payments: common questions
Can a sole trader get a card machine?
Yes. Sole traders can rent a card machine and take card payments, subject to the provider's checks and approval.
Do I need a limited company to take card payments?
No. You can take card payments as a sole trader, a partnership or a limited company. The provider will ask for details that match the way your business is set up.
Do I need a business bank account?
You need a UK bank account for your card sales to be paid into. Which accounts are accepted for a sole trader depends on the provider, so ask before you apply. Many sole traders find a separate business account makes bookkeeping easier.
Can a brand-new business take card payments?
Yes, although the provider may look more closely at the application because there is less trading history. Approval is always subject to the provider's decision.
What is the best card machine for a sole trader?
If you travel to customers or work at a stall, a portable terminal such as the PAX A920 Pro, with its own 4G SIM, is usually the best fit. If customers pay at a fixed counter, a countertop terminal such as the PAX A35 suits better.
Do I need to pay anything upfront for a card machine?
PayZu terminals are rented monthly with £0 upfront. Whichever provider you choose, ask for the monthly rental, the contract length and the exit terms in writing.
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Ready to take cards? Get a quote
Tell us about your business and we'll come back with a personalised quote. You can also email info@payzu.co.uk.
- £0 upfront
- Zero hidden & PCI fees
- 24/7 UK support