The Till School
The board · note 10

Which card reader, and what it actually costs

Buy it, rent it or lease it. The hardware is the small number on the page; the term, the monthly minimum and the exit fee are the large ones.

Card acceptance · UK · checked 16 Sep 2026
The short answer

A reader costs tens of pounds. The deal around it costs hundreds.

A card reader for a small UK shop starts at £19 to £29 plus VAT if you buy it outright, and the three companies that sell the cheap ones charge between 0.99% and 1.75% per transaction. The money is not in the hardware. It is in what the contract does after the first year: the term you signed, the monthly minimum, and what it costs to leave.

The guide

Three ways to get a card machine, and what each one does to you

  1. Buy it outright. You pay once, the device is yours, and the only ongoing cost is the percentage per sale. If the provider disappoints you, the loss is the hardware, and on the entry-level readers that is under £50.
  2. Rent it monthly from your acquirer. The rental sits on the same statement as the fees, which is why it is so easy to stop reading it. Rental is a charge like any other: it belongs in your effective rate, and most people never put it there.
  3. Lease it on a finance agreement. This is a separate contract, often with a finance company rather than the provider whose logo is on the machine. It has its own term, its own early-exit cost, and it does not end just because you stop taking cards. Read the party names at the top of the page before you sign anything with the word lease on it.

The Payment Systems Regulator set limits on card-acquiring contracts after its market review: an initial term of no more than 18 months, and after that a contract that either ends or rolls on notice of no more than 31 days, for merchants up to £10m of annual card turnover. Those limits are about the acquiring contract. A machine on a finance agreement is a different piece of paper, and the 18 months do not follow it there.

Source: PSR, PS22/2 card-acquiring market remedies · checked 16 Sep 2026
The published prices

What the three entry-level providers ask, in public, today

Read off their own product pages on 16 Sep 2026. Prices exclude VAT where the provider says so, and these are list prices: nothing here is a quote for your shop.

ProviderCheapest readerCounter-top devicePer transactionMonthly
SumUpSolo Lite £15, list £25SumUp Terminal £99, list £135 1.69% pay-as-you-go£0, or £19 for Payments Plus
Zettle by PayPalPayPal Reader from £29 for a first reader, £69 after that Reader and dock from £581.75% on all cards£0
SquareSquare Reader £19 + VATSquare Terminal £149 + VAT, or £25 + VAT a month for six months 1.75% in person, plus 1.5% on cards issued outside the UK£0 for the reader

Two details worth carrying into a call with any of them. SumUp’s Payments Plus plan at £19 a month cuts the in-person rate to 0.99%, but only for domestic consumer cards: business cards, international cards and American Express stay at 1.69%, and online sales are 2.50%. Zettle charges one rate, 1.75%, on every card it accepts. Square also quotes 1.75% in person, and adds 1.5% on top when the card was issued outside the UK, which matters more in a tourist town than in a suburb.

The arithmetic

Where a monthly plan starts paying for itself

SumUp’s own page says Payments Plus is the better deal above £3,300 of monthly sales. Work it out yourself and the plain number is lower: the plan saves 1.69% minus 0.99%, which is 0.7% of turnover, and £19 divided by 0.007 is £2,714. The gap is VAT. Add 20% to the £19 and the plan costs £22.80, and £22.80 divided by 0.007 is £3,257, which rounds to the figure on their page.

So both numbers are honest, and they answer different questions. If you can reclaim the VAT, your break-even is around £2,700 a month. If you cannot, it is around £3,300. And either way the saving only applies to the cards the discount covers, so a shop that takes a lot of business or foreign cards crosses that line later than the arithmetic suggests.

Our calculation from the rates published at sumup.com · checked 16 Sep 2026
Illustrative case

The café that paid £41 a month for a free machine

A two-site coffee shop takes £9,000 a month on cards, almost all of it domestic debit. The machine came free with the account, and the statement shows a £15 monthly minimum per site and £11 of terminal rental. That is £41 before a single sale is counted, or 0.46% of turnover on top of the headline rate.

Bought outright at the list prices above, two counter-top devices would have cost about £300 once. The free machine reached that in seven months and kept going.

The shop is invented, the structure is not: the monthly minimum and the rental are the two lines that most often turn a cheap headline rate into an expensive year. Both appear on your statement, and both belong in your effective rate.

Questions we get

Four questions about the machine

Is a free terminal ever actually free?
It is free of an upfront price. It is paid for through the rate, a monthly minimum, a rental line, or a term you cannot leave. Add those to your effective rate and you can see what the machine cost.
Can I take my reader to another provider?
Usually not. Entry-level readers are locked to the provider that sold them, which is why the cheap price is not a sunk cost worth defending in a bad deal.
Does the 18-month rule cover my terminal lease?
The limits the regulator set are on card-acquiring contracts. A lease is its own agreement, frequently with a finance company, and it carries its own term and exit cost.
What should I ask before signing?
Four things in writing: the term, what happens on the day it ends, the monthly minimum, and the cost of leaving early. If any answer arrives as a phone call rather than a line of text, ask again.