How Much Does a Card Machine Cost?

Understanding Card Machine Costs

Card machine pricing isn’t always straightforward. Different providers structure their fees differently, and what seems like a “cheap” option initially may cost more long-term. This guide breaks down all the costs you’ll encounter when accepting card payments.

Main Card Machine Cost Components

1. Transaction Fees (Per Payment)

What it is: A percentage of each transaction value plus a fixed fee per transaction.

How it works: Every time a customer pays by card, you pay a small percentage of that transaction plus a fixed amount.

What affects the rate:

• Your business type: Retail, hospitality, and service businesses get different rates
• Monthly transaction volume: Higher volumes typically secure better percentage rates
• Card type: Debit cards usually cost less than credit cards
• Transaction type: Contactless, chip and PIN, or card-not-present (online/phone)
• Terminal type: Countertop, portable, or mobile terminals may have different rates

Why rates vary: Providers assess your business risk, industry, and processing history to determine rates. Established businesses with predictable volumes get better rates than brand new businesses.

2. Monthly Fees

What it is: A fixed monthly charge for using the card machine service.

Typical structures:

• No monthly fee: Some providers charge zero monthly fees but may have slightly higher transaction percentages
• Low monthly fee: Small fixed monthly charge with competitive transaction rates
• Terminal rental fee: If you rent rather than buy the terminal, you pay monthly rental

What’s included: Monthly fees typically cover gateway access, customer support, transaction reporting, and PCI compliance tools.

Important consideration: A provider with no monthly fee but high transaction rates may cost more overall than one with a small monthly fee and lower transaction rates. Calculate based on your expected monthly transaction volume.

3. Terminal Costs (Purchase vs Rental)

Option A: Purchase the terminal outright

• Benefit: One-time cost, no ongoing rental fees
• Best for: Established businesses planning long-term use
• Consideration: You’re responsible for repairs/replacement outside warranty

Option B: Rent the terminal monthly

• Benefit: Lower upfront cost, provider replaces faulty terminals
• Best for: New businesses or those testing payment processing
• Consideration: Ongoing rental fees add up over time

Lease-to-own options: Some providers offer lease arrangements where you eventually own the terminal after a set period.

4. Setup Costs

What it is: One-time charges for account setup, terminal delivery, and activation.

Typical setup costs may include:

• Account application processing
• Terminal delivery and courier fees
• Integration setup (if connecting to EPOS or accounting software)
• Staff training (some providers offer this)

We Tranxact advantage: Many of our provider partners waive setup fees entirely, especially for businesses with reasonable monthly transaction volumes.

5. Additional Fees to Consider

PCI Compliance Fees: Annual or monthly charge for payment security compliance. Some providers include this, others charge separately.

Chargeback Fees: Charged when a customer disputes a transaction. Typically £15-£30 per chargeback regardless of outcome.

Refund Fees: Some providers charge small fees for processing refunds, though many don’t.

Early Termination Fees: If you cancel a contract before the agreed term ends. Can be substantial, so check contract terms carefully.

Minimum Monthly Processing Fees: Some providers charge a minimum monthly fee if you don’t process enough transactions. Important for low-volume businesses.

Statement Fees: Monthly or quarterly fee for account statements and reporting. Often included free but worth checking.

Non-Sterling Transaction Fees: Higher fees for processing non-GBP currencies (euros, dollars, etc.). Relevant if you serve international customers.

Card Machine Costs by Terminal Type

Countertop Card Machine Costs

Best for: Fixed-location businesses like shops, salons with reception desks, restaurants with static payment points.

Cost characteristics:

• Often the lowest transaction fees due to lower fraud risk
• No battery/connectivity costs to factor in
• Reliable wired connection means fewer technical issues
• Good option for high-volume businesses wanting to minimize per-transaction costs

Read our guide to choosing the best card machine for your business

Portable Card Machine Costs (Wi-Fi)

Best for: Restaurants (table service), hotels, salons, any business taking payments within premises.

Cost characteristics:

• Transaction fees typically similar to countertop terminals
• May have slightly higher monthly fees due to wireless technology
• Battery replacement costs over time (usually 2-3 years)
• Requires reliable Wi-Fi (factor in your internet costs)

Mobile Card Machine Costs (GPRS/4G)

Best for: Tradespeople, mobile beauticians, market traders, delivery businesses, anyone working at customer locations.

Cost characteristics:

• Slightly higher transaction fees due to mobile connectivity
• SIM card/data connectivity fees (monthly charge from provider)
• Built-in receipt printer means no separate printer needed
• Works anywhere with mobile signal – no dependence on customer Wi-Fi

How to Calculate Your True Card Machine Costs

Factors That Affect Your Card Machine Costs

Your Business Type

Retail shops, restaurants, and professional services typically get standard rates. High-risk industries (gaming, supplements, travel) face higher costs due to increased chargeback risk.

Monthly Transaction Volume

Higher volumes give you negotiating power. A business processing £100,000 monthly will get much better rates than one processing £5,000 monthly.

Average Transaction Value

The percentage you pay applies to each transaction value. Lower transaction values are proportionally more expensive due to fixed per-transaction fees.

Card Type Mix

Debit cards cost less to process than credit cards. If most of your customers use debit cards, your effective rate will be lower.

Contract Length

Longer contracts (2-3 years) sometimes offer better rates but reduce flexibility. Monthly rolling contracts offer flexibility but may cost slightly more.

Your Processing History

New businesses get standard rates. Businesses with 6-12 months of clean processing history can often negotiate better rates with their provider or shop around for better deals.

Common Card Machine Pricing Mistakes

1. Choosing Based on Headline Rate Only

A provider advertising “1.5% transaction fees” might have high monthly fees, setup costs, or minimum monthly charges that make it more expensive overall than a provider charging 1.75% with no other fees.

2. Ignoring the Small Print

Early termination fees, minimum processing requirements, and PCI non-compliance penalties can add significant unexpected costs. Read contracts thoroughly before signing.

3. Not Calculating Total Cost of Ownership

A “free” terminal that comes with high transaction fees will cost you more over time than buying a terminal outright with lower ongoing fees. Calculate 12-month total costs, not just upfront costs.

4. Accepting the First Quote

Card machine pricing is competitive. Getting multiple quotes ensures you’re not overpaying. We Tranxact helps you compare offers from multiple UK providers.

5. Not Reviewing Rates Regularly

Providers don’t automatically reduce your rates as your business grows. After 12 months of processing, you should review your rates and either negotiate with your current provider or shop around.

How We Tranxact Helps You Get Competitive Pricing

How Much Does a Card Machine Cost – Frequently Asked Questions

What is the cheapest way to accept card payments?

The cheapest option depends on your monthly transaction volume. For very low volumes, pay-as-you-go services with no monthly fees work well. For higher volumes, traditional merchant accounts with monthly fees but lower transaction percentages usually cost less overall. We help you calculate which option saves you money based on your actual volumes.

Do I have to pay a monthly fee for a card machine?

Not always. Some UK providers offer card machines with zero monthly fees, though transaction percentages may be slightly higher. Whether zero monthly fee or low monthly fee is better depends on your transaction volume. We help you compare both options.

Is it cheaper to buy or rent a card machine?

For businesses planning to process cards long-term (2+ years), buying is usually cheaper overall. For new businesses testing payment processing or those with uncertain futures, renting offers flexibility with lower upfront costs. Calculate 2-year total costs to compare accurately.

Why do card machine costs vary so much between providers?

Providers have different business models, risk appetites, and target markets. Some target high-volume businesses with low rates. Others focus on new or small businesses with slightly higher rates but better service. Competition also plays a role – comparing providers ensures you get competitive pricing.

Can I negotiate card machine fees?

Yes, especially if you process significant volumes or have been with a provider for 12+ months with clean processing history. Providers value customer retention and will often reduce fees when presented with competitive offers from other providers. We can help you negotiate or find better rates.

What counts as a high transaction volume for better rates?

Generally, businesses processing £50,000+ monthly in card payments have good negotiating power for competitive rates. Businesses processing £100,000+ monthly can access premium pricing tiers. However, even smaller businesses processing £10,000-£20,000 monthly can find competitive providers.

Are there hidden fees I should watch out for?

Common hidden fees include: early termination fees (£300-£1,000+), minimum monthly processing fees, PCI non-compliance penalties (£20-£50/month), quarterly or annual account fees, and non-sterling transaction surcharges. Always ask providers for complete fee schedules before signing contracts.

Do card machine costs include insurance?

No, card machine costs typically don’t include equipment insurance. If you buy your terminal, consider insuring it as part of your business contents insurance. Rental agreements usually include replacement for faulty terminals but not loss or theft.

How much do chargebacks cost?

Chargeback fees typically range from £15-£30 per dispute, charged regardless of whether you win or lose the chargeback. Additionally, high chargeback ratios (above 1%) can lead to increased transaction fees, account reviews, or even account termination. Preventing chargebacks through good customer service is essential.

Can I get a card machine with no contract?

Yes, several UK providers offer month-to-month agreements with no long-term commitment. These typically cost slightly more than 2-3 year contracts but offer flexibility. Good for new businesses or those uncertain about long-term needs.

Tips for Reducing Card Machine Costs

1. Increase Your Monthly Volume

Higher transaction volumes give you negotiating power. As your business grows, approach your provider about volume-based discounts or shop around for better rates.

2. Encourage Debit Card Payments

Debit card transactions cost less than credit cards. While you can’t refuse credit cards, you can encourage debit payments through signage or asking “Debit or credit today?”

3. Review Rates Annually

Payment processing is competitive. After 12 months, compare your current rates with new provider offers. Use competitive quotes to negotiate with your existing provider or switch to better pricing.

4. Maintain Good Processing Practices

Keep chargebacks low (under 0.5%), process refunds promptly, maintain PCI compliance, and avoid suspicious activity. Good processing history keeps costs down and makes you eligible for rate reductions.

5. Bundle Services

If you need multiple payment solutions (card machine + online gateway + invoicing), bundling with one provider often reduces overall costs compared to using separate providers.

6. Consider Wholesale or Interchange-Plus Pricing

For high-volume businesses, interchange-plus pricing (where you pay actual interchange costs plus a small fixed markup) can be significantly cheaper than blended rate pricing. Ask providers if this is available for your volume.

Understanding Your Card Machine Statement

Your monthly statement shows all costs broken down. Key things to check:

• Total transaction volume: How much you processed in card payments
• Number of transactions: How many individual payments you took
• Transaction fees: Total percentage-based fees charged
• Fixed fees: Monthly fees, PCI fees, other recurring charges
• Chargeback costs: Any chargeback fees incurred
• Net deposit: Amount actually paid to your bank account after all fees

Calculate your effective rate: (Total fees ÷ total volume) × 100 = your actual percentage cost. Compare this to quotes from other providers annually.

Related Card Machine Guides

• Best Card Machines for Small Business UK
• Card Machines for Restaurants
• Card Machines for Retail Shops
• Card Machines for Tradespeople
• Merchant Accounts UK

UK Payment Industry Resources

• UK Finance – Payment Standards
• Visa UK
• Mastercard UK
• Financial Conduct Authority – Payment Services
• PCI Security Standards Council

Get Accurate Card Machine Pricing

Stop guessing about card machine costs. We help UK businesses understand true pricing and compare multiple provider quotes to find competitive rates suited to their specific transaction volumes and business needs.