Finding the cheapest card reader in the UK sounds simple until you start comparing device prices, transaction fees, monthly subscriptions and payment features.
A card reader that costs less to buy is not necessarily the cheapest option to run. If it charges a higher fee every time a customer pays, your total costs can become much higher over the year.
For that reason, the best approach is to compare the complete cost of accepting card payments and choose a reader that fits your business size, payment volume and customers.
This guide explains exactly how card readers work, how to compare their costs, what features matter and how to set one up step by step.
Important: Card reader prices, transaction fees and provider terms can change. Always check the provider’s current pricing and terms before purchasing.
What Is a Card Reader?
A card reader is a payment device that allows a business to accept debit card, credit card and contactless payments.
Depending on the provider and device, customers may be able to pay using:
- Contactless cards
- Chip and PIN
- Apple Pay
- Google Pay
- Other supported digital wallets
The reader connects the payment to a payment processor, which checks and processes the transaction.
Once the payment is approved, the money is transferred to the business according to the provider’s settlement process.
Card readers are commonly used by:
- Small shops
- Market traders
- Cafés
- Restaurants
- Freelancers
- Tradespeople
- Mobile businesses
- Beauty professionals
- Event sellers
- Sole traders
For many small businesses, a card reader is a simple way to accept payments without installing a large traditional card terminal.
What Makes a Card Reader Cheap?
The cheapest card reader is not necessarily the device with the lowest purchase price.
There are usually four main costs to consider.
1. Hardware cost
This is the amount you pay for the physical card reader.
2. Transaction fee
This is the charge applied when a customer makes a card payment.
3. Monthly fee
Some providers charge a recurring subscription, while others offer pay-as-you-go pricing.
4. Additional charges
Depending on the provider, other charges may apply to things such as refunds, international cards, currency conversion or additional services.
Therefore, when comparing card readers, look at the total cost, not just the price of the machine.
Step-by-Step: How to Find the Cheapest Card Reader
If you are buying a card reader for the first time, follow these steps.
Step 1: Work Out How Much You Take by Card
Start by estimating your monthly card sales.
You don’t need an exact number.
Look at your previous sales records and estimate whether you normally process:
- Under £500 per month
- £500–£2,000
- £2,000–£5,000
- £5,000–£10,000
- More than £10,000
This figure is important because transaction fees become increasingly significant as your sales volume increases.
A business processing £500 per month has very different requirements from one processing £20,000.
Step 2: Decide Whether You Need a Portable Reader
Next, consider where you accept payments.
If you have a permanent shop counter, you may prefer a countertop or standalone terminal.
If you are a:
- Plumber
- Electrician
- Cleaner
- Market trader
- Photographer
- Mobile beautician
- Delivery business
you may need something small and portable.
A portable reader should ideally have reliable connectivity and enough battery life for your working day.
Step 3: Decide How Customers Will Pay
Make a list of the payment methods you expect customers to use.
At minimum, many businesses will want:
- Contactless cards
- Chip and PIN
- Debit cards
- Credit cards
You may also want mobile-wallet support.
Check the specific reader before buying because supported payment methods can vary between providers and devices.
Step 4: Compare the Transaction Fees
Now compare the transaction fee for each provider.
For example, suppose a hypothetical provider charges 1.5%.
If a customer pays £100:
£100 × 1.5% = £1.50
If you process £5,000 in card payments during a month:
£5,000 × 1.5% = £75
This is why transaction fees can be more important than the initial price of the device.
Step 5: Check for Monthly Charges
Now check whether the provider requires a monthly subscription.
There are broadly two models.
Pay-as-you-go
You pay for the device and then pay transaction fees when you accept payments.
This can be attractive for businesses with irregular or low sales.
Monthly plan
You pay a recurring fee, potentially in exchange for lower transaction fees or additional features.
This may make more sense for a business processing a high volume of payments.
Don’t automatically assume that a £0 monthly fee means the provider is cheapest.
Step 6: Calculate Your Estimated Annual Cost
This is one of the most important steps.
Use:
Annual cost = hardware + monthly fees + estimated transaction fees + other charges
For example, imagine a hypothetical reader costs £40 and charges 1.5% with no monthly subscription.
If your business processes £12,000 in card payments per year:
£12,000 × 1.5% = £180
Add the £40 hardware cost:
£180 + £40 = £220
So the illustrative first-year cost would be £220.
Another provider may charge £70 for the device and a £10 monthly subscription but have a lower transaction rate.
The second option could become cheaper if your payment volume is high enough.
Step 7: Check What Happens After You Buy
Before ordering, look at the full terms.
Check:
- Transaction fees
- Monthly charges
- Refund costs
- International card fees
- Contract length
- Cancellation terms
- Device warranty
- Replacement policy
- Payment settlement time
- Customer support
Only after checking these details should you decide which option is actually cheapest.
7 Card Reader Options Worth Comparing in the UK
There is no single cheapest reader for every business, but several well-known providers are worth researching.
1. SumUp
SumUp provides card readers aimed at small businesses, sole traders and mobile sellers.
Its solutions can be useful for businesses looking for a straightforward way to accept card payments.
You can compare its current hardware and transaction pricing based on your expected sales volume.
2. Square
Square offers card readers alongside point-of-sale and business-management tools.
This can be useful if you want more than a basic payment device.
Depending on the product and setup, businesses can also access features related to sales, receipts and inventory.
3. Zettle
PayPal offers Zettle payment solutions for businesses.
Zettle can be worth comparing if you want a portable card reader combined with point-of-sale functionality.
4. myPOS
myPOS offers portable payment terminals and related business payment services.
It can be particularly relevant for businesses that accept payments away from a fixed shop.
5. Revolut Business
Revolut provides business financial services and payment solutions.
It may be worth investigating if you already use its business platform and want to keep more financial functions together.
Revolut Business official website
6. Traditional Merchant Service Providers
Established merchant-service providers can be useful for businesses with larger payment volumes.
They may offer:
- Countertop terminals
- Portable terminals
- Multiple card machines
- Payment integrations
- Business reporting
- Point-of-sale systems
However, contracts and pricing can be more complicated.
A small business should carefully compare the total cost before signing a long-term agreement.
7. Tap-to-Pay Solutions
Some payment providers allow compatible smartphones to accept contactless payments without requiring a separate physical card reader.
This can reduce hardware costs.
However, compatibility varies.
Before choosing a phone-based solution, check:
- Your phone model
- Operating system
- Supported payment methods
- Provider requirements
- Transaction fees
- Whether PIN payments are supported where required
How to Choose the Cheapest Card Reader for Your Business Type
The right choice depends heavily on what you do.
Freelancer
If you only take occasional payments, look for a low-cost device and avoid unnecessary monthly subscriptions.
Market Trader
Prioritise:
- Battery life
- Portability
- Mobile connectivity
- Contactless payments
- Fast transactions
Small Shop
Transaction fees may matter more because you could process payments every day.
Café or Restaurant
Speed and reliability are critical.
A payment device that causes delays can create queues and frustrate customers.
Tradesperson
A portable reader with dependable connectivity can be more useful than a large countertop machine.
High-Volume Business
Calculate your annual transaction costs carefully.
Even a small difference in transaction fees can become significant when processing large amounts.
How to Set Up a Card Reader Step by Step
Once you’ve chosen a reader, setting it up is normally straightforward.
Step 1: Create Your Business Account
Register with your chosen payment provider.
You may need to provide information such as:
- Your name
- Business details
- Bank account information
- Business address
- Identification documents
The exact requirements vary by provider.
Step 2: Order the Device
Choose the card reader that matches your business requirements.
Check whether you need:
- Basic reader
- Portable terminal
- Standalone terminal
- Additional accessories
Step 3: Install the Provider’s App
If your reader works with a smartphone, download the official application and sign in.
Make sure you download it from the appropriate official app store.
Step 4: Connect the Reader
Depending on the device, connection may use:
- Bluetooth
- Wi-Fi
- Mobile data
- Built-in connectivity
Follow the manufacturer’s setup instructions.
Step 5: Connect Your Business Bank Account
You normally need to provide your business or eligible bank-account details so processed payments can be settled.
Check the provider’s settlement timetable because funds may not always arrive instantly.
Step 6: Test the Device
Before using the reader with customers, perform a small test payment if the provider’s setup allows it.
Check:
- Contactless works
- Chip and PIN works
- Connection is stable
- Receipt options work
- Payment appears correctly in the app
Step 7: Start Accepting Payments
Once everything works correctly, you can start accepting customer payments.
How to Take a Card Payment Step by Step
The process is usually simple.
Step 1
Enter the customer’s purchase amount into the payment device or app.
Step 2
Ask the customer to tap, insert or otherwise use their card or supported payment method.
Step 3
If required, the customer enters their PIN.
Step 4
Wait for the payment to be approved.
Step 5
Provide a receipt if required.
Step 6
Record the transaction in your business accounts.
That’s it.
The payment provider then processes the transaction and transfers the funds according to its settlement schedule.
How to Avoid Paying Too Much for Card Payments
Once your card reader is active, don’t forget about the fees.
Follow these simple steps.
Review your monthly transactions
Check how much you processed through cards.
Calculate your actual fees
Compare the fees you paid with your total card sales.
Check your provider’s latest pricing
Pricing can change over time.
Compare alternatives
If your business grows significantly, another pricing model may become cheaper.
Don’t pay for unnecessary features
If you only need basic card payments, you may not need an expensive POS system.
Common Mistakes When Buying a Cheap Card Reader
Choosing Only by Hardware Price
A £20 difference in hardware can be insignificant compared with years of transaction fees.
Ignoring Monthly Fees
A monthly charge can add up quickly.
Not Checking Refund Rules
Refund policies differ between providers.
Forgetting About International Payments
Foreign cards may attract different fees.
Choosing a Device With Poor Connectivity
A cheap reader is useless if it regularly loses connection during transactions.
Signing a Contract Without Reading It
Always understand cancellation terms and ongoing costs before agreeing.
Cheapest Card Reader: What Should You Check?
Use this checklist before making your final decision:
- Device price
- Transaction fee
- Monthly fee
- Refund charges
- International card charges
- Contactless support
- Chip and PIN
- Mobile-wallet support
- Battery life
- Connectivity
- Payment settlement time
- Customer support
- Warranty
- Contract terms
- Integration with your existing business software
If a reader passes this checklist and fits your payment volume, it may represent better value than a device that simply has the lowest advertised price.
Frequently Asked Questions
What is the cheapest card reader in the UK?
There isn’t one card reader that is cheapest for every business. The best option depends on your payment volume, transaction fee, monthly charges and required features.
Is a cheap card reader suitable for a small business?
Yes. A low-cost card reader can be suitable for a small business, particularly when payment volumes are low. However, always check transaction fees and other charges.
Is it better to pay monthly or use pay-as-you-go?
It depends on your sales volume. Pay-as-you-go may suit businesses with occasional payments, while a monthly plan can potentially work better for businesses processing larger volumes.
Do card readers accept contactless payments?
Many modern card readers support contactless payments, but you should confirm the exact features of your chosen device.
Can I use my phone as a card reader?
Some providers support Tap-to-Pay functionality on compatible smartphones. Availability and payment methods depend on the provider and device.
How much does a card reader cost?
The cost varies by provider and device. You should compare both the initial hardware price and ongoing transaction costs rather than focusing on the device alone.
Are card reader fees tax deductible?
Business payment-processing costs may be allowable business expenses depending on your circumstances and the relevant UK tax rules. Keep records of fees and speak to an accountant or tax professional if you are unsure.
Final Verdict: How to Find the Cheapest Card Reader
Finding the cheapest card reader UK businesses can use starts with one simple principle:
Don’t compare machines. Compare total costs.
First, calculate your monthly card sales. Then compare transaction fees, monthly subscriptions and hardware prices. After that, check payment methods, connectivity, battery life, refunds, customer support and contract conditions.
A freelancer processing a few hundred pounds per month may benefit from a simple pay-as-you-go reader.
A busy retailer processing thousands of pounds each month should pay much closer attention to transaction fees.
And a mobile business should prioritise portability and connectivity.
The cheapest card reader is ultimately the one that gives you the lowest realistic overall cost without sacrificing reliability, security or the payment features your customers need.
Before you buy, compare the latest provider pricing and calculate your expected annual cost. That small amount of research can help you avoid paying unnecessary fees for years.
