Choosing a card machine for a small business is not simply a case of finding the cheapest card reader.
A small UK business might use a simple pay-as-you-go reader, a traditional countertop or portable terminal, a card machine connected to an EPOS system, or even a compatible smartphone using Tap to Pay.
The right setup depends on how the business actually takes payments.
Factors such as monthly card turnover, average transaction value, number of terminals, business location, connectivity, settlement, contract terms and EPOS compatibility can all affect which payment arrangement is suitable.
This guide explains the main card machine options for small UK businesses, what they can cost and what to check before choosing a provider.
Card Machines for Small Businesses
- There is no single best card machine for every small business.
- Low-volume or occasional users may prefer a simple pay-as-you-go card reader with limited fixed costs.
- Established businesses processing more card turnover should compare the total cost of accepting payments rather than choosing on terminal price alone.
- Countertop, portable, mobile and phone-based payment options suit different ways of taking payments.
- Transaction fees, terminal costs, settlement, support and contract terms should all be compared.
- If you use EPOS, booking software or another business system, check payment compatibility before agreeing to a new provider.
- Businesses that already take payments should compare their existing merchant statements with any proposed replacement pricing.
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What Is the Best Card Machine for a Small Business?
The best card machine is the one that fits the way the business takes payments rather than simply the device with the lowest purchase price or monthly rental.
For example:
- a market trader might prioritise portability and mobile connectivity;
- a small retailer may prefer a fixed countertop card machine connected to the till;
- a restaurant may need portable card machines for pay-at-table payments;
- a tradesperson may want a mobile terminal or Tap to Pay;
- a salon or clinic may need payments to work alongside booking software;
- and a growing retailer may require integrated terminals, central reporting and multiple tills.
The first question should therefore not be:
“Which card machine should I buy?”
It should be:
“How do my customers pay, and what does the wider payment setup need to do?”
Our guide to choosing a card machine provider explains how to assess the complete payment arrangement rather than selecting a provider based on the terminal alone.
What Types of Card Machines Can Small Businesses Use?
Small businesses generally have several ways to accept face-to-face card payments.
| Payment option | Typical use | What to consider |
|---|
| Countertop terminal |
Retail tills, reception desks and fixed payment points |
Connectivity, checkout speed, EPOS integration and reliability |
| Portable terminal |
Restaurants, pubs, hotels, salons and payments around a premises |
Wi-Fi, mobile connectivity, battery life, tipping and pay-at-table functionality |
| Mobile card machine |
Trades, deliveries, events and businesses taking payments away from their premises |
Mobile signal, battery, portability and connectivity fallback |
| Pay-as-you-go card reader |
New, seasonal or lower-volume businesses |
Hardware cost, transaction rate, settlement and whether costs remain competitive as turnover grows |
| Tap to Pay |
Businesses wanting to accept contactless payments using a compatible smartphone |
Device compatibility, provider support, transaction pricing and operational requirements |
| Integrated card machine |
Businesses using EPOS, till, booking or other software |
Technical compatibility, reconciliation, support and ability to change payment provider later |
Should a Small Business Use a Pay-As-You-Go Card Reader?
Pay-as-you-go card readers can be attractive to businesses that want a relatively simple way to start accepting card payments.
Depending on the provider, the model may involve:
- buying the card reader upfront;
- little or no ongoing terminal rental;
- a simple percentage transaction charge;
- online account setup;
- limited contractual commitment; and
- straightforward reporting through an app or online portal.
This can work well for businesses processing relatively modest or irregular card volumes.
However, simple pricing does not automatically mean the lowest overall cost.
As a business grows, even a relatively small difference in transaction pricing can become more significant than the cost of the terminal itself.
When Should a Small Business Consider a Merchant Account and Card Terminal?
An established small business processing regular card turnover may benefit from comparing a wider merchant-services arrangement rather than relying automatically on a fixed-rate card reader.
A merchant account and terminal arrangement may provide access to:
- different transaction-pricing models;
- countertop, portable and mobile terminals;
- multiple terminals;
- EPOS integration;
- central reporting;
- different settlement arrangements;
- telephone or online payments;
- multi-site support; and
- commercial pricing based on the merchant's actual payment profile.
This does not mean a traditional merchant-services agreement is automatically better.
The important comparison is the total cost and functionality of each arrangement for the individual business.
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Small business does not necessarily mean small card turnover. A business with only a handful of staff can still process substantial card volumes. Payment providers should therefore be compared using the merchant's actual transaction profile rather than employee numbers or company size alone.
How Much Does a Card Machine Cost for a Small Business?
There is no single standard UK card-machine price.
The cost of taking card payments can include:
- terminal purchase or rental;
- percentage transaction fees;
- fixed transaction charges;
- merchant-account or service fees;
- PCI-related charges;
- connectivity or SIM charges;
- chargeback fees;
- additional-terminal costs;
- EPOS or integration charges;
- settlement-related costs; and
- contract or exit costs.
This is why a card reader advertised with no monthly rental is not automatically cheaper than a terminal supplied as part of a merchant-services agreement.
Our Card Machine Costs UK guide explains how these different charges fit together.
Why Do Transaction Fees Matter So Much for Small Businesses?
Transaction pricing can become one of the largest ongoing payment costs as card turnover increases.
In February 2026, the Bank of England stated that the average cost to UK merchants of accepting card payments was around 0.6% of transaction value and that the smallest merchants paid more than four times as much on average as very large merchants.
This is a market-wide observation rather than a rate a particular small business should expect to receive.
Actual costs can vary according to:
- monthly card turnover;
- average transaction value;
- consumer and commercial card mix;
- UK and international cards;
- debit and credit cards;
- business sector;
- provider;
- pricing structure; and
- additional account charges.
See our Card Machine Transaction Fees UK guide for a deeper explanation of how transaction pricing works.
Pay-As-You-Go vs Merchant Account: Which Is Cheaper?
Neither model is automatically cheaper.
A pay-as-you-go provider may be attractive where card turnover is low because the merchant may avoid some fixed monthly charges.
A negotiated merchant-services arrangement may become more attractive as processing volumes increase because the economics of the transaction rate become increasingly important.
Consider a simple illustrative example.
If a business processed £20,000 per month in card payments, a difference of 0.50 percentage points in processing cost would equal:
£100 per month
or approximately:
£1,200 per year.
If the same difference applied to £50,000 of monthly card turnover, it would represent approximately £3,000 per year.
These are illustrative calculations, not estimates of the savings available from changing provider.
The purpose is to show why businesses should compare the complete payment cost rather than concentrating solely on whether the card reader itself is inexpensive.
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Should a Small Business Rent or Buy a Card Machine?
Both models exist.
Some providers sell card readers upfront, while other merchant-services arrangements include terminal rental or another recurring hardware charge.
Buying a device can reduce ongoing terminal-rental costs, but businesses should still consider:
- transaction pricing;
- hardware support;
- replacement arrangements;
- software updates;
- provider compatibility;
- useful life of the terminal; and
- what happens if the business later changes processor.
Renting can reduce the upfront hardware cost and may include support or replacement arrangements, but businesses need to understand the contract and total ongoing cost.
For more detail, read our Card Machine Rental vs Purchase guide.
Does a Small Business Need a Countertop or Portable Card Machine?
This depends primarily on where the customer pays.
Countertop Card Machines
A countertop card machine normally suits businesses where customers pay at a fixed checkout, reception desk or service counter.
Typical users include:
- shops;
- convenience stores;
- salons;
- clinics;
- trade counters;
- professional-service reception areas; and
- other fixed-payment environments.
Portable Card Machines
A portable terminal allows staff to take the payment device to the customer.
This is particularly useful for:
- restaurants;
- cafés;
- pubs;
- hotels;
- hospitality venues;
- salons; and
- businesses where customers pay in different parts of the premises.
Businesses should check Wi-Fi or mobile coverage in the actual areas where the terminal will be used rather than assuming connectivity will be reliable throughout the premises.
Can a Small Business Take Card Payments on a Phone?
Yes.
Supported smartphones can now be used to accept contactless payments without a separate traditional card reader.
This is commonly referred to as:
- Tap to Pay;
- SoftPOS;
- phone-as-a-terminal; or
- mobile payment acceptance.
It can be particularly useful for:
- sole traders;
- mobile businesses;
- tradespeople;
- events;
- pop-up businesses;
- additional temporary payment points; and
- payment backup where appropriate.
Our Tap to Pay UK guide explains how phone-based payment acceptance works in more detail.
Should a Small Business Integrate Its Card Machine With EPOS?
If a business uses an EPOS, till, booking or other operating system, card-machine integration can reduce the need for staff to enter the transaction value manually into the terminal.
Depending on the integration, this can help with:
- passing the payment value from the till to the terminal;
- returning payment status to the software;
- reducing manual entry errors;
- reconciliation;
- refund workflows;
- reporting;
- tipping;
- split bills; and
- multi-site payment management.
However, integration also creates another important question:
Can the business change payment provider without replacing its EPOS system?
This should be established before entering a payment agreement.
Read our Integrated Card Machines & EPOS Compatibility guide before choosing an integrated terminal arrangement.
What Should a Small Business Compare Before Choosing a Provider?
At a minimum, compare the following.
| Area | Questions to ask |
|---|
| Card turnover |
How much do we process each month and year? |
| Transaction profile |
What is our average transaction value and card mix? |
| Terminal type |
Do we need countertop, portable, mobile or phone-based acceptance? |
| Number of terminals |
How many payment points do we need now and in future? |
| Transaction costs |
What will our actual mix of payments cost? |
| Fixed costs |
What terminal, account, PCI and service charges apply? |
| Settlement |
When will processed funds reach the business? |
| Connectivity |
Does the terminal use Ethernet, Wi-Fi, mobile data or a combination? |
| EPOS |
Does the provider integrate with our existing software? |
| Support |
When is support available and what happens if hardware fails? |
| Contract |
What are the minimum term, notice period and exit obligations? |
| Future requirements |
Can the arrangement support more terminals, sites or payment methods later? |
What Information Should You Have Before Comparing Card Machine Providers?
Small businesses will get a more meaningful comparison if they prepare some basic information first.
This should include:
- business sector;
- monthly card turnover;
- average transaction value;
- number of transactions;
- number of locations;
- number of card machines required;
- where customers make payments;
- existing payment provider, if applicable;
- existing card-machine and transaction costs;
- current contract position;
- settlement requirements;
- EPOS or other software used;
- online or telephone payment requirements; and
- expected future growth.
For businesses already taking cards, existing merchant statements can be especially useful.
They provide a much better basis for comparison than an advertised headline transaction rate.
When Should a Growing Business Review Its Card Machine Provider?
A card-machine arrangement that worked well when a business started may not remain the right option as the business grows.
A review may be worthwhile where:
- monthly card turnover has increased substantially;
- the business needs additional terminals;
- a second location is opening;
- transaction costs have become significant;
- the business needs EPOS integration;
- settlement requirements have changed;
- the current terminal has connectivity problems;
- support is no longer suitable;
- the business needs online or telephone payments as well as face-to-face acceptance; or
- the existing contract is approaching renewal.
If you are already considering a move, read our guide to switching card machine provider without disrupting payments before cancelling the existing arrangement.
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The payment setup should be reviewed as the business changes. A card reader chosen because it was easy to start with does not automatically remain the most suitable commercial or technical solution once turnover, locations, staff or software requirements increase.
How Can Merchant Advice Service Help?
Merchant Advice Service is an independent UK business-to-business payments information, comparison and provider-matching service.
We help businesses understand their payment requirements before introducing them to providers that may be suitable.
For a small business looking for a card-machine setup, relevant factors may include:
- business sector;
- card turnover;
- average transaction value;
- terminal requirements;
- number of locations;
- current provider;
- transaction costs;
- settlement;
- EPOS compatibility;
- connectivity;
- contract position; and
- future payment requirements.
You can also explore our main Card Machines advice hub for more detailed guidance on terminals, pricing, connectivity, security, integrations and switching.
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Sources & Further Reading
About Merchant Advice Service
Merchant Advice Service (MAS) is an independent UK business-to-business payments information, comparison and provider-matching service founded in 2016.
We help businesses understand their payment requirements before introducing them to providers that may be suitable.
Read more about Merchant Advice Service and how we approach payment-provider comparison.
Editorial & Commercial Disclosure
Merchant Advice Service provides independent payment information and provider-matching services.
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 provider-selection principles included in this guide.
There is no universal best card machine or payment provider for every small business. Suitability depends on factors including business type, card turnover, transaction profile, terminal requirements, pricing, settlement, EPOS compatibility, connectivity, support and contract terms.
Payment-provider pricing, products, hardware and integrations can change. Businesses should confirm current commercial and technical terms directly with the relevant provider before entering into an agreement.
Merchant Advice Service does not guarantee provider acceptance, pricing or technical compatibility.
