Quick Summary
How much does a card machine cost in the UK?
The answer depends on what you mean by “card machine cost”.
The physical terminal may be bought outright, rented or bundled into a payment package. But for most established businesses, the hardware is only a small part of the total cost of taking card payments.
Your real cost can include:
- card-processing fees;
- terminal rental or hardware costs;
- fixed transaction charges;
- interchange;
- card-scheme fees;
- provider margin;
- authorisation charges;
- PCI-related fees;
- account or service charges;
- chargeback fees;
- settlement charges;
- EPOS or integration costs; and
- contract and exit costs.
The cheapest card machine is therefore not necessarily the cheapest card-payment arrangement.
This guide explains what UK businesses should include when comparing card machine costs in 2026 and how to calculate the true cost of accepting payments.
Quick Summary: Card Machine Costs UK 2026
- There is no single standard UK card-machine price or transaction rate.
- The terminal itself may be purchased, rented or included within a wider merchant-services package.
- The Bank of England said in February 2026 that the average cost to UK merchants of accepting card payments is around 0.6% of transaction value.
- The same Bank of England analysis noted that the smallest merchants pay more than four times as much on average as very large merchants.
- The 0.6% figure is a market-wide benchmark, not a rate every business should expect to receive.
- Pay-as-you-go card readers often use simple blended percentage pricing.
- Larger merchants may be offered negotiated blended, interchange-plus or interchange-plus-plus pricing.
- Businesses should compare total monthly and annual cost rather than terminal rental alone.
- Contract length, settlement, EPOS integration and support can materially affect the overall value of a card-machine provider.
- For relevant providers covered by PSR Specific Direction 16, qualifying POS-terminal contracts are subject to restrictions on initial contract length.
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How Much Does It Cost a UK Business to Accept Card Payments?
There is now a useful independent benchmark.
In February 2026, Bank of England Deputy Governor Sarah Breeden stated that the average cost to UK merchants of accepting card payments is around 0.6% of transaction value.
The Bank of England also highlighted a substantial difference between merchants of different sizes, saying that the smallest merchants pay more than four times as much on average as very large merchants.
Read the Bank of England source.
This is important, but it should not be misunderstood.
0.6% is not a standard card-machine rate.
It is a market-wide estimate of card-acceptance costs. An individual business could pay materially more or less depending on:
- card turnover;
- average transaction value;
- number of terminals;
- consumer versus commercial cards;
- UK versus international cards;
- debit versus credit;
- provider;
- pricing model;
- business sector;
- risk profile; and
- additional account charges.
For our detailed analysis of current UK payment costs, see the UK Merchant Fees Benchmark 2026.
What Makes Up the Total Cost of a Card Machine?
When Merchant Advice Service compares card-machine arrangements, we separate the cost into several components.
| Cost | What It Means |
|---|
| Terminal cost |
Purchase price, monthly rental or hardware subscription |
| Transaction percentage |
Percentage charged against card transaction value |
| Fixed transaction fee |
A pence-based charge that may apply to each transaction |
| Interchange |
Fee typically paid through the acquiring chain to the card issuer |
| Scheme fees |
Charges associated with card schemes such as Visa and Mastercard |
| Acquirer/provider margin |
The commercial margin charged for providing the acquiring service |
| Account fees |
Monthly or recurring merchant-account/service charges |
| PCI fees |
Fees some providers charge for PCI compliance support or related services |
| Chargeback fees |
Charges that may apply when a card transaction is disputed |
| Settlement |
Potential costs or commercial differences associated with receiving funds |
| Integration |
EPOS, software or technical costs associated with the terminal setup |
| Contract |
Minimum term, notice provisions, equipment return and potential exit costs |
MAS View
A card-machine quote should never be assessed from one percentage or one monthly rental figure.
The correct comparison is the total cost of processing your actual transaction mix over the period you expect to use the service.
How Much Does the Physical Card Machine Cost?
Card terminals are generally supplied using one of several commercial models.
Buy the Card Reader
Some providers sell the terminal or card reader upfront.
This is common among pay-as-you-go payment providers.
The business owns or purchases access to the device and then pays transaction fees when it processes payments.
There may be:
- no terminal rental;
- no long minimum contract;
- higher headline transaction pricing than some negotiated merchant-account arrangements; or
- optional paid plans that reduce transaction pricing.
Rent the Card Terminal
Traditional merchant-services arrangements frequently include a monthly terminal rental or service charge.
The terminal itself may remain the property of the provider and may need to be returned when the agreement ends.
The important question is therefore not:
“How much is the machine per month?”
It is:
“What does the entire card acceptance arrangement cost per month?”
For the wider decision, see our Card Machine Rental vs Purchase guide.
What Are Card Machine Transaction Fees?
Transaction fees are usually the largest ongoing cost for businesses processing meaningful card volume.
There are several ways these costs can be presented.
Blended Pricing
A provider might charge one headline percentage for qualifying transactions.
This is straightforward for businesses to understand.
Public examples of simple in-person pricing currently include:
- SumUp: 1.69% for its pay-as-you-go in-person product; and
- Square: 1.75% for UK card-present transactions.
These are publicly advertised provider prices, not UK market averages and not recommendations.
Interchange-Plus / Interchange-Plus-Plus
Larger or more established merchants may instead receive pricing that separates components of the cost.
Depending on the model, these can include:
- interchange;
- card-scheme costs; and
- the provider/acquirer margin.
This can make the underlying economics easier to analyse, particularly for businesses processing substantial card volumes.
See our detailed Card Machine Transaction Fees guide.
Finding a cheaper card-machine arrangement is only useful if the business can move to it successfully. Switching can also involve terminal replacement, contract timing, EPOS compatibility, new merchant IDs, settlement changes and staff training.
If a cost review is leading you towards another provider, see our Switching Card Machine Provider guide before cancelling the existing agreement.
What Is Interchange?
Interchange is one component of many card-processing costs.
In a typical card transaction, the merchant's acquirer pays interchange through the card-payment system to the customer's card issuer.
Where the UK Interchange Fee Regulation applies, current consumer interchange caps are:
| Card Type | Current UK Cap |
|---|
| Consumer debit |
0.20% |
| Consumer credit |
0.30% |
These caps do not mean a merchant's total processing cost should be 0.20% or 0.30%.
Interchange is only one component.
The final merchant service charge may also incorporate:
- scheme fees;
- processing costs;
- provider margin;
- fixed transaction charges; and
- other service fees.
Read the Payment Systems Regulator's interchange guidance for merchants.
Why Does Card Turnover Affect Card Machine Costs?
Processing volume can materially affect the commercial model available to a merchant.
A business processing £2,000 per month might prefer:
- minimal fixed fees;
- no long contract;
- a simple card reader; and
- a straightforward percentage transaction charge.
A business processing £500,000 per month might care far more about:
- basis points;
- card mix;
- scheme costs;
- authorisation fees;
- settlement;
- multiple terminals;
- EPOS integration;
- central reporting; and
- contract negotiation.
This helps explain why comparing card-machine pricing without stating the merchant's card turnover can be misleading.
The MAS Card Machine Cost Formula
We would calculate the cost of a card-machine arrangement broadly as:
Transaction costs + fixed transaction charges + terminal costs + recurring account fees + additional payment fees + integration costs + contract costs.
Then compare that figure against:
total card turnover.
This produces a much more useful measure:
Total effective cost of card acceptance.
Example
Imagine a business processes £100,000 per month.
A quote advertising a lower terminal rental but charging an extra 0.20% on transaction costs could create:
£100,000 × 0.20% = £200 additional cost per month.
That is approximately:
£2,400 per year.
A £10 or £15 difference in monthly terminal rental could therefore be relatively insignificant by comparison.
This is an illustrative MAS calculation, not a market-rate comparison.
MAS View
The higher your card turnover, the less useful it becomes to choose a provider based primarily on the monthly cost of the terminal.
What Other Card Machine Fees Should Businesses Check?
The quote should be checked for charges beyond the headline transaction rate.
Depending on the provider and payment arrangement, these may include:
- terminal rental;
- merchant-account fees;
- authorisation charges;
- PCI-related charges;
- minimum monthly charges;
- chargeback fees;
- retrieval fees;
- refund-related fees;
- premium support;
- paper statement charges;
- SIM/data connectivity;
- additional-terminal fees;
- replacement-equipment costs;
- integration fees; and
- early termination or equipment-return charges.
Not every provider charges every fee.
That is exactly why headline percentages are difficult to compare in isolation.
How Can Businesses Find Their Current Card Machine Costs?
If you already accept cards, use actual statements rather than relying on the rate you remember agreeing when the contract was signed.
Collect several months of:
- merchant statements;
- terminal invoices;
- gateway invoices where applicable;
- PCI/service invoices;
- chargeback charges;
- other provider invoices; and
- monthly card turnover.
Add together all payment-related costs for the period.
Then calculate:
Total payment cost ÷ total processed card value × 100
This gives an approximate effective percentage cost for the period.
For higher-volume businesses, see our guide to auditing payment fees.
Use Your PSR Summary Box Where Available
The Payment Systems Regulator introduced measures designed to make card-acquiring costs easier for merchants to understand and compare.
For providers within the scope of the relevant directions, merchant information can include a summary box containing key price and non-price information.
The PSR's implementation framework includes information on:
- variable transaction fees;
- fixed transaction fees;
- charges for exceptions;
- worked transaction examples;
- recurring charges;
- service features; and
- contract information.
This can be useful when benchmarking the current provider against a new quotation.
Read the PSR's current implementation guidance.
How Long Can a Card Machine Contract Be?
Businesses should distinguish between:
- the card-acquiring agreement;
- the POS-terminal agreement;
- EPOS/software contracts; and
- other associated services.
The Payment Systems Regulator introduced Specific Direction 16 following concerns that lengthy POS-terminal contracts could discourage merchants from switching.
For the providers and merchants within its scope, the direction limits the initial term of relevant POS-terminal contracts to 18 months before moving to a rolling monthly arrangement.
The current consolidated direction applies to specified PSPs and relevant merchant contracts, so businesses should not assume every terminal agreement in the UK is automatically covered in exactly the same way.
Read Payment Systems Regulator Specific Direction 16.
For a wider review of renewal and switching, see our Merchant Services Contract Renewal guide.
Should You Choose the Cheapest Transaction Rate?
Not automatically.
Price matters, but a cheaper card-processing rate can lose its value if the wider service is unsuitable.
Businesses should also compare:
- settlement speed;
- terminal reliability;
- 4G/Wi-Fi/Ethernet resilience;
- support;
- EPOS compatibility;
- reporting;
- refund tools;
- multiple-user functionality;
- multi-site management;
- PCI setup;
- fraud controls;
- contract flexibility; and
- ability to support future growth.
A restaurant that saves £30 per month in processing but loses its EPOS integration may not have achieved a meaningful saving.
Integrated Card Machines Can Change the Cost Calculation
Businesses using EPOS-integrated payments should consider more than terminal and processing fees.
An integrated card machine can allow the payment amount to pass directly from the till to the terminal.
Potential operational benefits include:
- less manual keying;
- fewer amount-entry errors;
- faster reconciliation;
- centralised reporting;
- more efficient staff processes; and
- a more joined-up payment experience.
But changing provider can also require:
- EPOS compatibility checks;
- software development;
- new terminal integration;
- testing;
- staff training; and
- potential downtime planning.
These are real costs even if they do not appear on the merchant-service statement.
See our Card Machine & EPOS Compatibility guide.
How Much Does Settlement Matter?
Settlement determines when card-payment funds reach the merchant.
Depending on the provider and merchant, this may be:
- same day;
- next day;
- after several working days; or
- subject to additional risk controls.
A business should not necessarily pay significantly more for faster settlement if it does not need the cash-flow benefit.
But for a merchant processing high daily volumes, settlement timing can materially affect working capital.
The commercial comparison should therefore include both:
what the payment service costs
and:
when the business receives its money.
What Does PCI DSS Add to Card Machine Costs?
All merchants accepting card payments need to understand their PCI DSS responsibilities.
Some providers include compliance tools within their wider service. Others may charge separately for compliance support or associated services.
There can also be additional charges where a merchant does not complete required validation steps.
Rather than comparing only whether a provider charges a “PCI fee”, businesses should understand:
- what the fee actually covers;
- what validation the merchant needs to complete;
- which systems are within scope;
- whether terminals are integrated;
- whether MOTO payments are taken; and
- which PCI responsibilities remain with the business.
See our PCI DSS Compliance Guide for UK Businesses.
Countertop, Portable or Mobile: Does the Machine Type Affect Cost?
Potentially, but the right choice should primarily follow how the business takes payments.
| Terminal Type | Typical Use | What to Consider |
|---|
| Countertop |
Fixed tills and checkout desks |
EPOS integration, Ethernet/Wi-Fi, till layout and transaction speed |
| Portable |
Restaurants, hospitality and payments around a premises |
Wi-Fi range, battery life, tipping, pay-at-table and EPOS |
| Mobile |
Payments away from fixed premises |
4G/mobile connectivity, battery, coverage and portability |
| Phone / Tap to Pay |
Occasional or mobile payments using compatible smartphones |
Device compatibility, transaction pricing and operational requirements |
The best terminal is therefore not necessarily the cheapest device.
It is the one that fits the way customers actually pay.
How Should Multi-Site Businesses Compare Card Machine Costs?
Multi-site businesses should avoid assessing each terminal as an isolated device.
The larger questions include:
- number of terminals across the estate;
- processing volume by location;
- whether separate MIDs are required;
- centralised reporting;
- EPOS integration;
- deployment and replacement;
- remote terminal management;
- settlement reporting;
- support across locations;
- staff permissions; and
- group-level commercial pricing.
A merchant operating 50 stores usually has much more negotiating leverage than a merchant renting one terminal.
That should be reflected in the commercial review.
When Should a Business Review Its Card Machine Costs?
We would consider a review when:
- the current contract is approaching renewal;
- card turnover has increased materially;
- new locations have opened;
- the business has added more terminals;
- transaction values have changed;
- the provider has increased pricing;
- the EPOS system is changing;
- the business is moving into ecommerce or omnichannel payments;
- settlement no longer meets cash-flow requirements;
- service quality has deteriorated; or
- the original contract was negotiated when the business was much smaller.
MAS View
A business that has doubled its card turnover since signing its merchant agreement should not assume that the pricing agreed when it was smaller still represents good value.
Card Machine Cost Checklist
Before comparing providers, collect the following:
- monthly card turnover;
- annual card turnover;
- transaction count;
- average transaction value;
- debit/credit mix;
- consumer/commercial card mix;
- UK/international card mix;
- number and type of terminals;
- current transaction rates;
- fixed transaction charges;
- terminal rental;
- account fees;
- PCI-related fees;
- chargeback/retrieval fees;
- settlement time;
- EPOS integration;
- contract end date;
- notice period;
- exit conditions; and
- current support/service issues.
This gives a potential replacement provider enough information to make a meaningful commercial comparison.
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The MAS Card Machine Cost Test
Rather than comparing one headline rate, Merchant Advice Service would separate card-machine cost into six areas.
1. Processing Cost
What does the merchant pay to process its actual mix of cards and transaction values?
2. Hardware Cost
What does the terminal cost to buy, rent or maintain?
3. Account Cost
What recurring, PCI, statement or other service charges apply?
4. Operational Cost
Does the solution integrate with EPOS, improve reconciliation and work reliably across the business?
5. Contract Cost
What are the minimum term, notice requirements, equipment obligations and potential switching costs?
6. Future Cost
Will pricing and infrastructure remain competitive if processing volumes, locations or payment requirements grow?
MAS View
Do not compare card machines pound for pound. Compare the entire cost of accepting card payments.
How Merchant Advice Service Compares Card Machine Costs
Merchant Advice Service is an independent payments information, comparison and provider-matching service.
When reviewing card-machine providers for an established business, we may consider:
- current card turnover;
- existing provider;
- current transaction costs;
- number of terminals;
- terminal type;
- card mix;
- transaction values;
- settlement;
- contract terms;
- EPOS compatibility;
- reporting requirements;
- multiple locations;
- PCI requirements;
- online payment requirements; and
- expected future growth.
Our role is to help businesses compare the complete payment arrangement rather than simply choose the terminal with the lowest advertised price.
Explore providers through The Payments Directory® or read How Merchant Advice Service Works.
Sources & Further Reading
Bank of England — UK Card Acceptance Costs
In February 2026, Bank of England Deputy Governor Sarah Breeden stated that the average cost to UK merchants of accepting card payments is around 0.6% of transaction value and that the smallest merchants pay more than four times as much on average as very large merchants.
Bank of England — Talking 'bout next generation
Payment Systems Regulator — Card-Acquiring Market Review
The PSR found that the supply of card-acquiring services did not work well for many small and medium-sized merchants and larger merchants with annual card turnover up to £50 million, including concerns around transparency, comparison and switching.
PSR Card-Acquiring Market Review
Payment Systems Regulator — Specific Direction 16
Current requirements concerning the initial term of relevant POS-terminal contracts for providers and merchants within scope.
PSR Specific Direction 16
Payment Systems Regulator — Interchange
Official merchant guidance explaining UK interchange fee caps and how interchange forms part of merchant card-acceptance costs.
PSR — Interchange Fee Regulation and Merchants
Square — Current UK Pricing
Square currently publishes card-present pricing of 1.75% for relevant UK in-person transactions.
Square UK Fee Schedule
SumUp — Current UK Pricing
SumUp currently publishes pay-as-you-go in-person card pricing of 1.69%, alongside alternative subscription pricing.
SumUp UK Card Machine Pricing
Related Merchant Advice Service Guidance
Editorial & Commercial Disclosure
Merchant Advice Service is an independent payments information, comparison and provider-matching service.
MAS may receive commission or a referral fee from some payment providers where a business chooses to proceed following an introduction. This does not determine the factual information or comparison principles used within this guide.
There is no universal UK card-machine price or merchant-processing rate.
The Bank of England's 0.6% figure is a market-wide estimate of the average cost to UK merchants of accepting card payments and should not be interpreted as a price available to every individual merchant.
Provider prices shown in this article are publicly advertised prices included for reference. They are not market averages, guaranteed quotes or provider rankings.
Actual merchant pricing depends on factors including turnover, transaction profile, card mix, business model, provider, acquiring route and commercial terms.
Specific Direction 16 applies only within its defined scope and should not be interpreted as meaning every card-terminal agreement in the UK is subject to identical contract requirements.
Provider pricing, products and contract terms can change.
Merchant Advice Service does not guarantee pricing or provider acceptance.
Pricing and regulatory information last checked: 27 August 2026
This guide provides general payments information and should not be treated as legal, regulatory or financial advice.
