How to Choose a Card Machine Provider

Why Provider Choice Matters

Choosing the wrong card machine provider costs UK businesses thousands annually in excessive fees, restrictive contracts, and poor service. The right choice saves money, provides reliable equipment, and scales with business growth.

Unlike energy or broadband where service is largely identical regardless of provider, payment processing varies significantly. Transaction fees can differ by 1% or more between providers – on £50,000 annual card turnover, that’s £500 difference. Contract terms range from no commitment to 3-year lock-ins with £1,000+ exit fees. Equipment quality varies from basic readers to advanced EPOS-integrated systems.

This guide helps you identify the right provider for your specific business needs rather than accepting the first option you encounter.

Understanding Provider Types

Pay-As-You-Go Providers

Who they are: SumUp, Square, Zettle, Revolut Business

Characteristics:

• No monthly fees – costs included in transaction percentages
• Higher transaction rates (1.69-1.75%)
• No contracts – cancel anytime
• Instant to 24-hour approval
• Buy terminals outright (£29-£299)
• Next-day settlement typically
• Basic features, user-friendly

Best for: New businesses, low-medium volume (under £10,000 monthly), businesses wanting flexibility, seasonal traders, market stalls, mobile businesses.

Not ideal for: High-volume businesses (£20,000+ monthly), businesses needing advanced features, those requiring dedicated account managers.

Traditional Merchant Account Providers

Who they are: Worldpay, Barclaycard, Lloyds Cardnet, Takepayments, Elavon

Characteristics:

• Custom pricing based on volumes
• Lower transaction rates (1.2-1.8% typically)
• Monthly fees (£0-£50 typically)
• Contracts (1-3 years common)
• 2-5 day approval process
• Terminal purchase or rental options
• Dedicated support for larger accounts

Best for: Established businesses, high volume (£10,000+ monthly), businesses needing multiple terminals, those wanting negotiated rates.

Not ideal for: Very low volume, businesses wanting no commitment, startups needing instant setup.

Payment Facilitators (Aggregators)

Who they are: PayPal, Stripe, iZettle (now Zettle by PayPal)

Characteristics:

• Simplified onboarding (instant approval)
• Combined online and in-person processing
• Flat-rate pricing
• No contracts
• Good for omnichannel businesses
• Account holds can occur (risk management)

Best for: E-commerce businesses adding in-person sales, businesses selling online and offline, international businesses.

Not ideal for: High-risk industries (strict policies), businesses processing large volumes wanting lowest rates.

Independent Sales Organizations (ISOs)

Who they are: Payment consultancies like We Tranxact, broker networks

Characteristics:

• Compare multiple providers on your behalf
• Independent advice (not tied to one provider)
• Negotiate rates leveraging relationships
• Often waive setup fees through partnerships
• Ongoing support even after setup

Best for: Businesses wanting independent comparison, those unsure which provider suits them, businesses seeking competitive quotes from multiple sources.

Not ideal for: Businesses already certain which provider they want, those preferring direct relationships with providers.

Key Factors to Compare

1. Transaction Costs (Most Important)

Transaction fees are your largest ongoing cost. Don’t compare headline rates alone – calculate total costs at YOUR specific monthly volume.

What to compare:

Transaction percentage: The percentage charged per transaction (e.g., 1.75%).

Fixed per-transaction fee: Flat amount per transaction (e.g., 20p).

Calculation method:

If you process £10,000 monthly in card payments at 1.75% + 20p per transaction with average transaction £25:

• Number of transactions: £10,000 ÷ £25 = 400 transactions
• Percentage fees: £10,000 × 1.75% = £175
• Fixed fees: 400 × £0.20 = £80
• Total transaction costs: £175 + £80 = £255 monthly

Compare this total across providers, not just the percentage.

Questions to ask providers:

• What’s the exact transaction rate for MY industry and volume?
• Does the rate vary by card type (debit vs credit)?
• Are Amex transactions charged higher rates?
• Do rates differ for contactless, chip and PIN, or keyed entry?
• Will my rate decrease if volumes increase?

2. Monthly and Fixed Fees

Beyond transaction costs, consider all recurring charges.

Common monthly fees:

Monthly service fee: £0-£50 for account maintenance and gateway access.

Terminal rental: £10-£40 monthly if renting instead of purchasing.

PCI compliance fee: £0-£20 monthly for security compliance management.

Minimum monthly processing fee: Some providers charge minimum fees if you don’t process enough (e.g., £25 minimum – if transaction fees only total £15, you’re charged £10 extra).

Statement fee: £0-£10 for monthly account statements (often included).

Total these up: A provider advertising “low transaction fees” might have high monthly fees making them more expensive overall for your volume.

3. Contract Terms and Commitment

Contract terms significantly impact long-term costs and flexibility.

Pay-as-you-go (no contract):

• Cancel anytime with no penalties
• Flexibility to switch if better options emerge
• Usually higher transaction rates
• Good for new or seasonal businesses

Monthly rolling contracts:

• 30-day notice period to cancel
• Good balance of commitment and flexibility
• Often better rates than pay-as-you-go
• Minimal exit barriers

Fixed-term contracts (1-3 years):

• Best transaction rates typically
• Early termination fees (£200-£1,000+)
• Locked in even if better options emerge
• May include automatic renewal clauses

Questions to ask:

• What’s the contract length?
• What are early termination fees?
• Does the contract auto-renew?
• How much notice is required to cancel?
• Can I switch to monthly rolling after initial term?

Red flag: Providers unwilling to clearly state contract terms and exit fees upfront.

4. Terminal Quality and Features

Terminal quality impacts reliability, customer experience, and functionality.

Build quality indicators:

• Screen brightness and clarity (matters for outdoor use)
• Button responsiveness
• Battery life for portable/mobile terminals (8+ hours minimum)
• Durability (drop resistance, water resistance ratings)
• Connectivity reliability (Wi-Fi, Bluetooth, GPRS)

Essential features:

• Contactless payment (up to £100 in UK)
• Chip and PIN
• Magnetic stripe (for international cards)
• Receipt printer (thermal, check paper roll cost)
• Email receipt option (paperless)

Useful advanced features:

• Tipping function (restaurants, salons, taxis)
• Split payments (divide bill between multiple cards)
• Refund processing directly on terminal
• Inventory management (track stock)
• Employee management (individual logins, sales tracking)
• Customer database (regular customer records)
• Integration with accounting software (Xero, QuickBooks, Sage)

Match features to your needs: Don’t pay for advanced EPOS features if you only need basic card acceptance. Conversely, don’t choose basic readers if you need inventory management.

5. Settlement Speed

Settlement speed affects cash flow – how quickly funds reach your bank account after transactions.

Typical settlement times:

Next business day: Most pay-as-you-go providers (SumUp, Square). Transactions processed Monday arrive Tuesday.

1-2 business days: Common with traditional providers. Monday transactions arrive Tuesday or Wednesday.

3-7 business days: New high-risk accounts or businesses with limited processing history. Improves over time.

Same day: Available from some providers for established high-volume businesses (often costs extra).

Why it matters: If you process £2,000 daily and have 3-day settlement vs next-day settlement, that’s £4,000 difference in working capital available. For businesses with tight cash flow, faster settlement is valuable.

Questions to ask:

• What’s the standard settlement time?
• Does settlement time improve after processing history is established?
• Are weekends included in settlement days? (Important – some providers exclude weekends)
• Is faster settlement available? What’s the cost?

6. Customer Support Quality

When payment processing fails, you lose sales. Support quality matters.

Support aspects to evaluate:

Availability:

• 24/7 phone support (ideal for restaurants, hotels)
• Business hours only (acceptable for 9-5 businesses)
• UK-based or overseas call centers
• Multiple contact methods (phone, email, live chat)

Response times:

• Immediate phone pickup or long hold times?
• Email response within hours or days?
• Live chat response speed

Support quality:

• Technical knowledge of staff
• Can they resolve issues or just log tickets?
• Dedicated account manager (larger accounts)
• Self-service resources (help center, guides, videos)

How to assess before signing:

• Read reviews mentioning support quality
• Call support with pre-sales questions (tests responsiveness)
• Ask provider about support hours and channels
• Request case studies or references from similar businesses

7. Integration Capabilities

If you use other business software, integration saves time and reduces errors.

Common integrations:

Accounting software: Xero, QuickBooks, Sage, FreeAgent – automatic payment recording, invoice matching, reconciliation.

E-commerce platforms: Shopify, WooCommerce, Magento – synchronized online and in-person inventory.

Booking systems: OpenTable, Fresha, Mindbody – accept deposits and payments within booking flow.

EPOS systems: Lightspeed, Vend, Square POS – integrated sales tracking and inventory management.

CRM systems: HubSpot, Salesforce – customer payment history visible in CRM.

Questions to ask:

• Does the card machine integrate with [your specific software]?
• Is integration native or requires third-party apps?
• Are there additional costs for integration?
• How complex is setup? (Some integrations require developer work)

8. Reliability and Uptime

Payment processing downtime = lost sales.

What to investigate:

Historical uptime: Check review sites for mentions of frequent outages or connectivity issues.

Backup options: Does provider offer alternative payment methods if primary terminal fails?

Network quality: For mobile terminals, which networks do they use? (EE, Vodafone, etc.)

Redundancy: For critical businesses, consider having backup provider or manual card imprinters.

SLA (Service Level Agreement): Do they guarantee uptime percentages? What compensation for downtime?

Provider Selection Process

Common Provider Selection Mistakes

Mistake 1: Choosing Based on Terminal Cost Alone

The trap: “This provider offers free terminals!”

Reality: Free terminals usually mean higher transaction fees or longer contracts. Calculate total costs over 24 months.

Example:

• Provider A: Free terminal, 1.9% transaction rate, £50/month fee, 3-year contract
• Provider B: £200 terminal purchase, 1.4% rate, £0 monthly, no contract

At £15,000 monthly processing over 24 months:

• Provider A: £0 + (£285 × 24) + (£50 × 24) = £8,040
• Provider B: £200 + (£210 × 24) = £5,240

Provider B saves £2,800 despite “buying” the terminal.

Mistake 2: Not Comparing Multiple Providers

The trap: Accepting the first quote or using your bank’s offering without comparison.

Reality: Transaction rates vary 0.5-1.5% between providers. On £50,000 annual turnover, 0.5% difference = £250/year. 1% difference = £500/year.

Solution: Always compare at least 3 providers. Include both pay-as-you-go and traditional options.

Mistake 3: Ignoring Contract Terms

The trap: Focusing solely on rates and ignoring contract length or exit clauses.

Reality: A slightly better rate isn’t worth being locked in for 3 years if your needs change, better options emerge, or the business closes.

Expensive mistakes:

• £800 early termination fee to switch providers
• Stuck with provider after discovering poor support
• Unable to negotiate better rates despite volume growth
• Contract auto-renews for another 3 years if you miss cancellation deadline

Solution: Start with flexible contracts (pay-as-you-go or monthly rolling) unless rates justify commitment.

Mistake 4: Not Reading Reviews

The trap: Trusting marketing materials and sales promises without independent verification.

Reality: Reviews reveal real-world experiences: actual support quality, hidden fees, connectivity issues, account holds.

What to look for:

• Overall rating (4+ stars generally good)
• Response to negative reviews (shows how provider handles problems)
• Common complaint themes (widespread issues vs isolated cases)
• Recent reviews (provider quality changes over time)
• Reviews from businesses like yours

Mistake 5: Underestimating Future Volume Growth

The trap: Choosing provider based on current low volumes without considering growth.

Reality: If your business grows from £5,000 to £20,000 monthly card processing, you’ll want to renegotiate or switch providers. If you’re locked in a 3-year contract, you’re stuck paying higher-than-necessary rates.

Solution: If you expect growth, choose flexible contracts or providers offering automatic volume-based rate decreases.

Mistake 6: Overlooking Settlement Speed

The trap: Not considering how settlement speed affects cash flow.

Reality: For businesses with tight margins or rapid inventory turnover, 7-day settlement vs 1-day settlement significantly impacts available working capital.

Example: Restaurant processing £3,000 daily:

• 7-day settlement: £21,000 constantly in transit
• 1-day settlement: £3,000 in transit
• £18,000 cash flow difference

Mistake 7: Choosing Your Bank By Default

The trap: Assuming your business bank offers the best merchant account rates.

Reality: Banks often have higher fees than specialist payment providers. The convenience of having everything with your bank rarely justifies the cost difference.

Solution: Include your bank in comparisons but don’t default to them without checking alternatives.

Mistake 8: Failing to Negotiate

The trap: Accepting initial quotes as final prices.

Reality: Transaction rates, monthly fees, setup fees, and contract terms are often negotiable, especially for established businesses or higher volumes.

Negotiation tactics:

• Present competitor quotes
• Highlight your clean processing history
• Commit to higher volumes for better rates
• Request waived setup fees
• Ask for shorter contract terms

Industry-Specific Considerations

Restaurants and Cafés

Priority features: Portable terminals for table-side payment, tipping functionality, EPOS integration for menu management.

Best provider types: Square (strong EPOS integration), traditional providers (high volume, multiple terminals).

Avoid: Basic card readers without tipping, providers with poor restaurant-specific support.

Retail Shops

Priority features: Fast transaction processing (high volume), inventory management, multiple terminal support, barcode scanning.

Best provider types: Traditional providers (volume-based pricing), Square (if needing EPOS).

Avoid: Pay-as-you-go if processing over £15,000 monthly (traditional providers cheaper).

Tradespeople and Mobile Businesses

Priority features: Mobile GPRS connectivity (works anywhere), long battery life, rugged durability, invoice payment options.

Best provider types: Pay-as-you-go providers (flexibility, no contracts), mobile-specific terminals.

Avoid: Wi-Fi-only portables (won’t work at customer locations without Wi-Fi).

Professional Services (Accountants, Solicitors, Consultants)

Priority features: Virtual terminal (phone/invoice payments), accounting software integration, high transaction value support.

Best provider types: Providers offering virtual terminal alongside physical terminal options.

Avoid: Providers with low transaction value limits (some cap single transactions).

Beauty Salons and Spas

Priority features: Portable terminals (payment in treatment rooms), tipping functionality, booking system integration, customer database.

Best provider types: Square (booking integration), pay-as-you-go providers (flexibility).

Avoid: Countertop-only terminals (reduces payment convenience).

Gyms and Fitness Studios

Priority features: Recurring billing for memberships, multiple terminals (reception + studio floor), member management integration.

Best provider types: Traditional providers with recurring billing, specialized fitness payment processors.

Avoid: Providers without robust recurring payment handling (manual processing becomes time-consuming).

Questions to Ask Every Provider

Red Flags to Watch For

Unwillingness to provide written fee schedules: All fees should be clearly documented before signing.

Vague contract terms: “We’ll discuss rates later” or unclear exit clauses.

Pressure tactics: “This rate expires today” or “Sign now or pay more.”

Unusually long contracts: 4-5 year contracts are excessive for card machine services.

Automatic rate increases: Contracts including automatic annual fee hikes without notification.

Poor reviews with pattern complaints: Multiple reviews mentioning same issues (poor support, hidden fees, difficult cancellation).

No refund or cooling-off period: Reputable providers offer 14-30 day trial periods.

Upfront equipment purchase requirements: Unless you’ve chosen to buy terminals, be suspicious of large upfront payments.

Making the Final Decision

Create a Comparison Spreadsheet

List providers in rows, key factors in columns:

• Provider name
• Transaction rate
• Monthly fees
• 12-month total cost
• 24-month total cost
• Contract length
• Settlement speed
• Terminal type/cost
• Support hours
• Review rating
• Integration capability

Score each factor 1-5. Weight factors by importance to your business. Highest total score wins.

Trust Your Gut on Support Quality

If pre-sales support is unhelpful, slow, or pushy, post-sales support will likely be worse. Choose providers where interactions feel professional, helpful, and transparent.

Start with Flexibility If Uncertain

When torn between similar options, choose the most flexible arrangement. Pay-as-you-go or monthly rolling contracts let you switch if it’s not right. You can always move to contracted rates later once confident.

When to Use a Payment Consultant

Independent payment consultants like We Tranxact help businesses navigate provider selection by:

• Comparing multiple providers simultaneously: We obtain quotes from several providers matching your needs
• Negotiating on your behalf: Our provider relationships often secure better rates than direct applications
• Explaining complex pricing: We translate payment processing jargon into clear cost comparisons
• Identifying hidden fees: We review complete fee schedules and contracts to highlight costs providers don’t advertise
• Providing independent advice: We’re not tied to specific providers so recommendations are genuinely based on your best interests
• Saving time: Rather than researching and contacting multiple providers individually, we handle the comparison process

Our consultancy is provided free to businesses – we’re compensated by providers when we refer customers, keeping our advice independent.

When consultants make sense:

• You’re unsure which provider category suits you
• You want to compare multiple providers without multiple applications
• You’re processing significant volumes and want negotiated rates
• You’re in a high-risk industry needing specialist providers
• You don’t have time to research and compare independently

After You Choose a Provider

Review Performance Annually

Payment processing is competitive. Rates and offerings improve constantly. Every 12 months:

• Review your total costs (transaction fees + all monthly charges)
• Calculate your effective rate
• Check if your volumes have increased (may qualify for better rates)
• Research current market rates
• Contact your provider about rate reductions
• Get quotes from competitors if provider won’t negotiate

Businesses that review rates annually save £200-£1,000+ compared to those who never review.

Track Key Metrics

Monitor these monthly:

• Effective transaction rate: Total monthly fees ÷ total card turnover
• Settlement accuracy: Are funds arriving as expected?
• Chargeback ratio: Disputes as percentage of transactions (keep under 0.5%)
• Decline rate: Failed transactions (high rates indicate terminal or connectivity issues)
• Support response time: How quickly issues are resolved

Maintain Good Standing

Businesses with clean processing history negotiate better rates:

• Keep chargeback ratio low (respond to disputes quickly with evidence)
• Maintain PCI compliance (complete annual questionnaires)
• Process consistently (large unexplained volume spikes trigger reviews)
• Respond to provider communications promptly

Reference Data

For comprehensive UK payment processing costs, timelines, and provider comparisons, view our complete UK payment processing data reference guide.

Provider Selection – Frequently Asked Questions

What’s the best card machine provider in the UK?

There’s no single “best” provider – the right choice depends on your monthly card volumes, industry, and specific needs. Pay-as-you-go providers (SumUp, Square, Zettle) work best for businesses processing under £10,000 monthly. Traditional providers (Worldpay, Barclaycard) offer better rates for higher volumes. Compare 3-5 providers at your specific volumes to find the best fit.

How do I compare card machine providers?

Calculate total 12-month costs for each provider: (monthly transaction fees × 12) + (all monthly fees × 12) + setup costs + terminal costs. Compare these totals rather than headline transaction rates alone. Also evaluate contract terms, settlement speed, support quality, and features relevant to your business type.

Should I choose a pay-as-you-go or traditional provider?

Choose pay-as-you-go (SumUp, Square, Zettle) if you: process under £10,000 monthly, want no commitment, need instant setup, or are a new business. Choose traditional providers if you: process £10,000+ monthly, want lowest rates, don’t mind contracts, or need dedicated support. The crossover point is typically £5,000-£10,000 monthly processing.

Can I negotiate card machine rates?

Yes, especially with traditional providers and if you: process £10,000+ monthly, have 12+ months clean processing history with low chargebacks, can present competitor quotes, or commit to longer contracts. Pay-as-you-go providers have fixed rates with less negotiation flexibility. Request rate reviews annually as volumes grow.

What contract length should I choose?

Start with no contract (pay-as-you-go) or monthly rolling if: you’re a new business, unsure about volumes, want maximum flexibility, or testing payment processing. Consider 1-2 year contracts only if: rates justify commitment (calculate savings), you’re confident in provider, you understand all contract terms including exit fees. Avoid 3+ year contracts unless rates are significantly better.

How important is settlement speed?

Settlement speed significantly impacts cash flow for businesses with: tight margins, rapid inventory turnover, high daily volumes, or seasonal cash flow. Next-day settlement vs 7-day settlement can mean £10,000-£50,000+ difference in available working capital depending on volumes. Less critical for businesses with strong cash reserves or lower volumes.

Should I buy or rent card machine terminals?

Buy terminals if: planning long-term use (2+ years), want to avoid ongoing rental costs, have upfront capital available. A £200 terminal purchased outright saves £400+ over 24 months compared to £25/month rental. Rent terminals if: testing payment processing short-term, want provider to handle replacements, prefer spreading costs monthly, or unsure about commitment.

What are the biggest mistakes when choosing providers?

Common costly mistakes include: comparing headline rates only (ignoring total costs), accepting first quote without comparison, ignoring contract terms and exit fees, not reading reviews from similar businesses, underestimating future volume growth, choosing based on “free” terminal without calculating long-term costs, and failing to negotiate rates.

How do I switch card machine providers?

To switch providers: check current contract for exit fees and notice period, obtain quotes from new providers, give required notice to current provider (typically 30-90 days), set up new account and terminals, run both systems briefly during transition, then fully switch over. If locked in contract with high exit fees, calculate if savings with new provider justify the termination cost.

Do I need different providers for online and in-person sales?

Not necessarily. Many providers offer both payment gateways (online) and card machines (in-person) with unified reporting and settlement. Square, Zettle, and most traditional providers support omnichannel processing. However, some businesses use specialized providers for each channel if features or rates are significantly better separate. Consider management complexity when deciding.

Related Payment Processing Guides

• Best Card Machines for Small Business UK
• Card Machine Provider Comparison UK
• How Much Does a Card Machine Cost UK
• Merchant Account Fees Explained
• How to Get a Merchant Account UK
• Payment Processing Glossary

UK Payment Industry Resources

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

Get Independent Provider Comparison

Unsure which card machine provider suits your business? We compare multiple UK providers on your behalf, explaining costs and helping you choose the best fit for your industry and volumes.