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According to our research, the best credit card reader for UK small businesses is the SumUp 3G card reader, due to its range of handy features and low transaction fees.
While we'd put SumUp at the front of the pack, there are some great rival card readers from brands including Square, WorldPay and PayPal's Zettle system. Picking the right one for your business can come down to the type and scale of transactions that you process – there can be significant differences in the transaction fees you'll have to factor in.
The most important thing is to choose a card reader system that presents the best long-term value for your business. We recommend using our handy card reader cost comparison tool. It only takes minutes to use, and there's zero obligation on your part.
Clover Flex from Tyl (by Natwest)
1.7%, 1.6% or 1.5%, depending on your Shopify plan
0.2%-3.5% + 20p-40p dependent on sales volume
1-4.99% depending on sales volume
Yes, if returned within 30 days
Yes, if returned within 30 days
Yes, if returned within 30 days
Yes, if returned within 30 days
Yes, if returned within 30 days
Yes, if returned within 30 days
Free access to Tyl, by Natwest
Pricing is correct as of 01 March 2022
As the table above shows, we think the best credit card reader for UK small businesses is the SumUp 3G card reader, closely followed by the Takepayments A920 and Zettle by PayPal card readers.
Card machines are a must-have for any business that needs to take payments from customers, so finding the right provider is crucial. You don't want to waste your resources on the wrong technology, so it's best to do your research before comitting to a long-term contract.
Startups has been working with SMEs for more than two decades. We know all of the pain points that can arise from choosing the wrong card machine – and the benefits that come from choosing the right one.
In the below article, we've picked out 11 options based on several key factors – such as accompanying fees and services – to give you a wide range of providers and ensure you invest in the best card payment machine for your small business.
✓ Small retail shops and market stalls
✓ Counter service cafes and pop-up food stalls
With one of the lowest transaction fees on the UK market (just 1.69%) and crystal-clear, flat-rate pricing, the SumUp 3G card reader comes up trumps for affordability – perfect for beginners and savvy business owners wanting to keep things simple and costs low.
Whether you’re running a mobile coffee stall, or simply want something a little more compact in-store, SumUp Air travels well and has a long lasting charge to boot. This makes it a popular option amongst businesses fresh on the startup scene.
SumUp keeps its users happy with stellar customer support and a no-nonsense app that’s perfect for newcomers to the world of card machines.
Just don’t expect all the bells and whistles at this price point – this is an uncomplicated card reader with a simple app, but it has everything you need to start growing your business.
✓ Works with a SIM card (no need to connect to mobile phone)
✓ Can set up an online store using SumUp app
✓ Includes decent analytics platform to help grow your business
✓ Contract free (leave when you wish and only pay when you make a sale)
As our pricing table shows, the SumUp 3G card reader can work out as great value for a small business.
The upfront cost of £99 for the card reader machine itself may look steeper than what you'll pay for rivals. But, the lower ongoing transaction fees mean that SumUp's device could work out as better value for you in the long run.
And don't worry – despite the ‘3G' in the product name, you're not going to end up having to pay a mobile data fee for using the card reader!
✓ Touchscreen terminal for up to six users
If you’re unsure about future plans for your business, the short 12-month contract offered by Takepayments is a great option, especially as the majority of competitors lock you into an 18-month contract (at least).
The A920 model is a ‘multipay’ smart POS terminal that can be shared with up to six users, which is great if you want to use it as a mobile checkout on the move around your business (especially good for hospitality). It also comes with a neat feature that allows you to allocate tips to each user, keeping the gratuities received within your team fairly distributed.
The fees you pay are best for high transaction values, as they can rise up to 2.5% per transaction depending on factors like average transaction value, turnover and cards accepted. There’s no setup fee or monthly cost, but be aware that if you want to cancel your contract early, you’ll have to buy out the remainder of it if you don’t give at least two months’ notice.
Real-time reporting and in-depth sales analysis come as standard with the A920, which is great for measuring employee performance and daily/weekly sales figures to help you identify customer trends.
✓ Brand new businesses that require a short-term commitment
✓ Hospitality businesses with a high average transaction size
✓ Supports a huge range of payment methods, including Amex and Diners Card
✓ Software supports payment links and invoicing
✓ Contract free (only pay when you’re selling and leave when you wish)
✓ Choose Zettle as your payment gateway to keep online sales in same place
Small businesses can use the Zettle by PayPal card reader with third party hardware, including receipt printers, cash drawers, and barcode scanners, as part of a complete POS system.
Alternatively, you can sync it up to your smartphone or tablet to take card payments on the go. Customers who require a receipt can have one sent to their email address.
The Zettle by PayPal card reader is well suited to startups looking to take payments quickly in a no-fuss fashion.
Even its customer service is minimal, with the provider preferring to lead customers down the self-help route. For those who prefer to speak to an agent, its phone lines are only available between 9am and 5pm on weekdays.
With ultra-low costs and one of the highest-rated apps around, Zettle by PayPal is a great alternative to traditional ways of processing card payments, and great for innovative and budget-conscious businesses.
✓ Small retail shops and market stalls
✓ Counter service hospitality businesses, full service cafes and restaurants (with Zettle by PayPal hospitality software), pop-up food stalls
✓ On-glass chip and pin functionality
✓ Works alongside multi-functional and very expandable POS hardware
✓ Manage face-to-face and online sales in one place
Card not present transaction fee – 2.5%
Square's card reader is designed for small business owners wanting to keep costs low without missing out on the good stuff – like the option to integrate its accompanying POS software with food delivery apps or customer relationship management systems.
The card reader itself is a high-spec device that allows customers to enter their pins on the glass of your phone or tablet, rather than tapping buttons on a keypad. While this is unconventional, you can rest assured that Square applies the highest security standards to its products.
Clean and simple, Square’s card reader adds a breath of fresh air into the payment process, and shows that it’s putting itself at the forefront when it comes to pioneering the future of the payments market.
If you’re looking for an all-in-one payment solution, you may want to check out the Square terminal, which also allows you to manage items and print receipts from one device.
✓ Countertop and mobile cafes (Square software)
✓ Table service cafes and restaurants (Square for Hospitality software)
✓ Range of card readers and plans to choose from
Transaction fee – dependent on sales volume
One of the best small business card machines in the UK, Worldpay is all about the options. Not only does it offer a range of contracts and transaction fee rates, which you qualify for based on your monthly sales income, it also offers a range of card readers to choose from.
To secure the best transaction fee rate, you should opt for Worldpay’s Simplicity plan, an 18-month contract which sees the percentage you pay per transaction drop from 2.5% to 1.5% – one of the lowest rates around.
Worldpay is for those who prioritise security over everything, so you can look forward to robust fraud protection and complete PCI compliance (security standards for processing card payments). Plus, with 24/7 support, you’ll never be left in the dark.
Whether you’re looking for a mobile card reader to take on the road, or a fixed terminal for your shop's point of sale area, Worldpay’s payment-taking solutions are robust options for small businesses.
✓ All types of small businesses
Compare card reader costs with our specially designed online comparison tool
✓ Fairly basic accompanying payment software
✓ Fast deposits into your business accounts
Barclays’ little device accepts credit and debit card payments through the mobile connection of your smartphone or tablet. Aside from that, the card reader package is comparatively basic.
In fact, the sole function of the accompanying software is to facilitate payments. You won’t be able to upload an inventory or access an analytics platform, for example.
You will, however, benefit from decent Barclays phone support and receive swift deposits into your Barclays account.
At 1.6%, the Barclaycard Anywhere offers one of the lowest transaction rates going, but your compromises are that the card reader only accepts Visa and Mastercard, and refunds cost 75p to process.
The Barclaycard Anywhere card reader is for those who would prefer to stick with a bank they can trust – and the Barclaycard Anywhere card machine will save you hassle if you already have a Barclays account.
Barclaycard Payments is also a big supporter of its SME customers. It recently enabled a new virtual card for its customers called Precisionpay Go, which aligns with Apple Pay for secure and seamless in-store and online payments.
The solution comes as new research reveals that more than three quarters of SMEs in the UK (76%) now accept payments through digital wallets, demonstrating the demand to pay with virtual methods in favour of more traditional cards.
✓ Small businesses that take occasional payments
An example of an ecommerce site built using Shopify
✓ Fully integrated with Shopify POS
✓ Accepts all major payment types including Google Pay
✓ Only available for Shopify users
Transaction fees – 1.7%, 1.6% or 1.5%, depending on your Shopify plan
Shopify is one of the most popular online store builders in the world. That's why, even though it's only available for Shopify users, we think the Shopify WisePad 3 is worth considering as a great card reader for ecommerce small businesses.
The WisePad, as the name suggests, is a clever little machine for any business that uses Shopify Payments. It accepts all major payment cards and types, and is priced in the mid-range at £49 + VAT.
You do have to enable Shopify Payments to be able to use the machine, because it’s all fully automated with Shopify POS. However, if your firm is based online, it might actually be a bonus to switch to Shopify Payments as this partnership ensures a slick, quick checkout process for users.
Another advantage of using Shopify Payments for your business is that it charges low transaction fees. However, if you use any other payment gateway, you’ll be charged 0.5%, 1%, or 2%, depending on which Shopify plan you’re on.
If you want to know more about using Shopify, read our full guide to the Shopify platform to find out how it works and how to get started.
✓ Small ecommerce stores built using Shopify
✓ Accepts a wide range of payment cards
✓ Slightly outdated terminal with no touchscreen
The MyPOS Go card reader is a sleek, portable and compact model that won't break your bank, but probably won't break your expectations either. Designed for low budget users, it's not the most attractive machine, but it is functional.
One feature that's rare within the market is that MyPOS Go offers users a payment card. The payment card is linked to an online “e-account” where all transactions through the card reader are settled instantly. This is a good deal to take advantage of if you don't have a business bank account – it is free to set up and there are no monthly fees.
There are disadvantages with the e-account, however. For example, although you receive an IBAN for international transfers, you have to pay a fee to transfer money into your UK bank account.
✓ Users needing instant access to funds
✓ Small businesses wanting low transaction fees
✓ Not the most affordable option for small businesses
Transaction fees – 0.2%-3.5% + 20p-40p dependent on sales volume
Weighing in at 453 grams, the Clover Flex card reader from Tyl by Natwest is a literal and metaphorical heavyweight in the card reader market, and one of the most powerful machines in this list.
As an all-in-one POS system, you can use the Clover Flex reader both to take payments and manage your business from one device, including inventory and customer management, itemised receipts and more. This makes it a very valuable feature to have.
Plus, thanks to its association with the Natwest bank, you only need to wait one day for payments to go through and you get access to the Tyl payment gateway.
But this long list of talents comes at a high price. You'll need to pay £14.99 + VAT per month, and that's before some expensive transaction fees. Because of its fast turnaround time, we recommend it to businesses wanting speedy payments, such as those using lots of freelancer staff.
✓ Small businesses using lots of freelancer staff
✓ Small businesses looking to scale fast
✓ Businesses coming from rival merchants get a monthly, rolling subscription
Dojo's mid-range price means it doesn't stand out from the market in terms of value. However, it is an ideal choice for small businesses that want a merchant provider that requires little commitment.
The small business owners who will find Dojo most appealing are those who have used merchant accounts before. Dojo allows SMEs that are swapping from a rival provider to enter a monthly, rolling contract, so you can leave easily and at any time.
There’s a monthly rental fee of £20 + VAT to use the Dojo Go card reader, plus transaction fees and other authorisation costs. Because of this, the plan is best suited for businesses with a consistent sales volume, so you can avoid a steep monthly minimum service fee of between £20 to £40.
✓ Sole traders wanting next day payouts
✓ Small businesses with a steady flow of payments
✓ Ideal for firms without access to a permanent connection point
Transaction fees – 1%–5% depending on sales volume
There's nothing that particularly stands out about the Ingenico iWL251 in terms of value for money. It is a basic, compact terminal that accepts any payment type. It is also much more expensive than many models on the market, priced at £20 per month before VAT.
But if you are a small business that moves around a lot for sales – such as a market trader – then the iWL251 card reader is a good option. Portability is its number one benefit, as you can fit the device in your pocket and trade from practically anywhere (as long as you have a wifi or 3G connection).
✓ On-the-road or market sellers that want to prioritise portability
Most people think of a card machine as a specific type of software. But in reality, there are a number of different types of card readers, and some will fit with your business better than others.
What is the difference between card readers and card machines?
Card readers are essentially less powerful versions of card machines. They tend to be smaller in size and therefore more portable.
Both card readers and machines accept payments on behalf of a registered merchant. But a card reader generally requires a mobile or computer application in order to function. It's usually cheaper because of this, but also less functional. Your customers typically won't be able to use chip and PIN with card readers, so this option is best for businesses that don't make huge sales transactions.
Clover Flex from Tyl (by Natwest)
1.7%, 1.6% or 1.5%, depending on your Shopify plan
0.2%-3.5% + 20p-40p dependent on sales volume
1-4.99% depending on sales volume
£20 per month for Shopify Basic
Free access to Tyl, by Natwest
If you own a small business that’s just getting off the ground, SumUp and Takepayments A920 are the ideal first card readers. Their fees are reasonable and in line with the functional capabilities of their accompanying software.
Takepayments offers shorter contracts than most (12 months) and no joining or leaving fees, making it perfect for brand-new business needing a zero-risk, short-term commitment.
Fast-growing businesses should choose either Square card reader or WorldPay card reader, as they're the two options that really stand out from the competition in terms of value for money (if you want to compare Square and Zettle by PayPal side by side, we’ve done so in our Square vs Zettle review).
Another great option is the Shopify WiseCard 3 card reader, although this is only available for Shopify users.
Alternatively, an even easier way to compare small business credit card machines is through our card reader cost comparison tool. You can compare costs from a range of suitable providers, saving you both time and money. Thousands of small businesses found their card reader through Startups.co.uk last year, so why not give it a go?
If you’re still not certain about which card reader is best for your small business, our merchant accounts team have put together a specialist comparison tool that pairs businesses with the right providers based on their answers.
Speak to the right people from the outset, and compare fees from card reader providers that best match your needs. The service is free, so why not give it a go?
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Helena "Len" Young is from Yorkshire and joined Startups in 2021 from a background in B2B communications. She has also previously written for a popular fintech startup.
Included in her topics of interest and expertise are tax legislation, the levelling up agenda, and organisational software including CRM and project management systems. As well as this, she is a big fan of the films of Peter Jackson.
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