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  • Also known as POS (point-of-sale) terminals, PDQ (Process Data Quickly) machines, card readers or card payment solutions.

  • Essential for small businesses to accept customers' payments by card, contactless and mobile wallet.

  • You will typically be paid from sales to your business account within three working days, though some providers offer immediate or next‑day deposits for faster access.

  • A card payment machine allows businesses to accept debit and credit card payments, offering a secure and efficient alternative to cash.

  • Fixed terminals are a great fit for retail stores, while portable card readers give mobile and small businesses the flexibility to take payments on the go.

  • Whatever your business, a card payment machine helps ensure fast, secure transactions.

There are five main types of card payment machine:

  • Countertop terminals: sit at a fixed location, like shops or cafés, plugged directly into an Ethernet line, giving a professional, smooth checkout experience.

  • Portable machines: connect to smartphones or tablets, via Wi-Fi or Bluetooth, ideal for mobile businesses, market stalls, or delivery services.

  • Mobile card readers: use a built-in SIM card for connection, designed for mobile businesses like courier services or pop-up stalls.

  • Tap to pay: requires no hardware, and payments are made directly onto a mobile phone, often used by businesses trading at festivals and taxi drivers.

  • Smart terminals: all-in-one machines, fixed at a till, often used in hospitality and contain features like receipt printing and real-time transaction reporting.

Fees and hidden costs explained

It can help to add up the different costs involved when finding the right payment solution for your business.

Hardware costs

The upfront cost for the machine itself. Depending on the equipment and your payment plan, this can range from £0 to several hundred pounds.

Transaction fees

The percentage you pay on each sale. For example, a 1.75% fee means you pay £1.75 for every £100 in sales. Rates often vary based on your annual transaction volume.

Monthly fee

As well as transaction fees, you can sign up to a monthly contract. Pay-as-you-go options are available too, but generally come with higher transaction charges.

Chargeback fees

Fees charged by your provider when a customer disputes a transaction with your business with their bank. These are usually non-refundable even if you successfully challenge the disputed transaction.

Other charges

On top of operating costs, there can also be additional charges for things like customer refunds, PCI compliance and extra software.

Which sort of card machine is best for your business?

To get a card payment machine, you’ll need a business bank account and a card terminal provider. Then choose either a pay-as-you-go or contract plan.

Card payment machines must be linked to a business bank account or merchant account so you can receive customer payments.

There could be some benefits to switching your card machine provider. These include:

  • Lower transaction fees

  • More payment methods for your customers

  • Flexible contracts

  • Better reporting services

Before switching, check if there are any cancellation fees in your contract, so you're not charged unexpectedly.

Card machine FAQs

About the author

Joe Phelan profileJoe Phelan
Joe joined the money.co.uk team in 2024, where he helps small business owners navigate the often confusing world of business finance. His role is to cut through the jargon and create clear, actionable content that empowers entrepreneurs to make confident financial decisions.