Compare UK Merchant Services
Request a consultation today to see if you qualify for wholesale rates and contract buyout support.
| Provider | The Pros (Good) | The Cons (Bad) | Verdict |
|---|---|---|---|
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Recommended Broker Exclusive Plan |
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Best for established businesses wanting lowest costs. Request Quote |
| Square / Zettle |
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Good for market stalls & hobbyists taking <£2k/month. |
| Worldpay |
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Reliable but often expensive for SMEs. |
| Barclaycard |
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Safe choice, but lacks speed and modern features. |
| TakePayments |
|
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Good service, but very long commitment required. |
| Tyl (NatWest) |
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Solid option if you already bank with NatWest. |
What are the "Hidden Costs" of Card Machines?
When comparing card payment providers in the UK, the headline "transaction rate" is rarely the only fee you pay. Many legacy banks and providers add surcharges that can inflate your monthly bill significantly.
1. Authorisation Fees
Some providers charge anywhere from 2p to 6p every time a card machine connects to the bank—even if the transaction declines. If you are a coffee shop doing 500 transactions a day, a 4p auth fee adds £20/day (£600/month) to your bill.
2. PCI Compliance & Non-Compliance
PCI DSS is a security standard. Many banks charge a monthly "management fee" (approx £5-£10). Worse, if you fail to validate your compliance annually, you can be hit with "Non-Compliance Fines" ranging from £30 to £100 per month.
3. Minimum Monthly Service Charge (MMSC)
This is a "floor" limit. If your agreed MMSC is £20, but you only generate £12 in transaction fees during a quiet month, the bank will charge you the extra £8 to make up the difference.
4. Terminal Rental vs Purchase
Most professional terminals (like PAX A920 or Ingenico) are rented. While buying outright (like Square) seems cheaper, rented terminals come with full replacement warranties and 24/7 support, which is vital if your machine breaks on a Saturday night.
Can I switch if I am in a contract?
This is the most common question we get at iNeedCardPayments. The short answer is: Yes.
Many business owners stick with expensive providers like Worldpay or Barclaycard because they fear the "Early Termination Fee." However, the market has changed.
Contract Buyouts Explained
Our "Broker Exclusive" partners typically offer a Contract Buyout Service. This means if your current provider charges you an exit fee (e.g. £500 to leave), our new provider can credit your account with that amount, effectively making your switch free.
Note: Buyouts typically cover up to £3,000 in exit fees, but you must provide your final settlement invoice as proof.
Frequently Asked Questions
Which card machine is cheapest for small businesses?
If you take less than £2,000 per month, pay-as-you-go providers like Square or SumUp are usually cheapest because they have no monthly rental fee. However, once you cross the £2,000 threshold, their 1.75% fixed rate becomes expensive compared to a merchant account with rates around 0.8% - 1.2%.
How long does it take to get a card machine?
With our recommended partners, applications are typically approved within 24 hours. Terminals are shipped via next-day delivery, meaning you can be up and running within 2-3 working days.
What is "Instant Settlement"?
Standard banks often hold your money for 2-4 working days (e.g., money taken on Friday arrives on Wednesday). "Instant Settlement" or "Next Day Transfer" means the funds are cleared into your bank account the very next morning, typically around 10am, even on weekends and bank holidays.
Do I need Wi-Fi for these machines?
Modern Android terminals (like the PAX A920) come with a built-in 4G SIM card with unlimited data. They connect to the strongest mobile network automatically, so they work without Wi-Fi—perfect for mobile businesses or as a backup if your broadband fails.