Updated: 3 July 2024

If you’re running a business, you’ve probably noticed by now that the majority of the UK population prefers paying by card and contactless. In fact, 87 per cent of UK face-to-face payments are made by contactless – an increase from 65 per cent in 2019 – according to a 2022 report from Lloyds Bank.

Which is why making sure you have a reliable and easy to use card reader is important for your small business’s success.

But which is the best card machine for your business, and how do you start taking card payments? Read on for a comparison of three of the best card machines for small UK businesses.

Our comparison of card machines for small businesses is based on price (including fees), but also features like fast deposits into your business bank account and simple set-up. We also expect them to be portable, and ready for contactless payments with one tap of a mobile.

Do I need a card machine?

The days of cash payments only, and even clunky countertop hardware, are disappearing fast. Card payment machines are commonplace in stores and have become a crucial tool.

Technology has moved on, however, along with choice. Solid chip and PIN machines are available, but many small businesses are opting for mobile card readers, which work from almost any site or premises and give customers the option to pay easily.

How to use a card reader

How you use a card reader will depend on the specific model you choose, but they all tend to follow the same basic principals. All you’ll need to do is enter the amount your customer needs to pay and present the card reader to them. They’ll then be able to pay by chip and PIN or by contactless.

Your card reader will then connect to the card network to verify the payment. Once the payment has been approved, the reader will display a confirmation message and you can give a receipt to your customer – either printed or digital.

Using a card reader can be better for your customers, as less people are carrying cash nowadays, and better for your business, as you’ll be handling less cash on your premises.

What is a POS system?

Something to consider when choosing a card reader is the point-of-sale (POS) system. A POS system makes it possible for you to complete sales with your customers. It will usually be an app on a tablet or smartphone that lists all of your products and their prices while also tracking your sales. It then connects to the hardware (e.g. a card reader), works out the price of a transaction, and processes the payment.

In the past, a POS system would have been the cash register where you take payment. Nowadays, most POS systems are digital and offer more flexibility in how you complete a sale with a customer, like being able to take card payments over the phone.

It’s worth noting that not every card reader works with every POS system. So when you buy a card reader, make sure it’s compatible with your POS system and will let you take a card payment.

We have a whole guide on the best POS systems for restaurants (which will also work in other types of small businesses too) if you want to take this route. But if you’re just looking for a card reader, keep reading for our top picks.

What card reader features should I look out for?

Most of the newer, app-based card machines are user friendly and contactless so we’ll assess them on their:

affordability (without a complex contract or fee structure)
app-based function
portability

Best card machine for small business

We’ve scoured the market and rated these three card machines. We looked into value for money, simplicity, and flexibility. In no particular order, here are the best card machines for UK small businesses.

Zettle card reader

Zettle, previously known as iZettle, is popular with many small businesses. Zettle is available as both a card reader and a full POS system, so it can grow with your business.

Your first Zettle card reader costs £29 (with additional card readers costing £59). You’ll then be charged 1.75 per cent each transaction, with no other hidden costs.

Some other benefits of the Zettle card reader include:

get paid directly into a PayPal Business account, with funds arriving in minutes
no hidden monthly fees
set up automatic transfers to your business bank account for no extra cost
accepts most major cards and contactless payments
one charge lasts eight hours, or 100 transactions
compatible with iOS and Android

Square card reader

The Square card reader also comes in everything from a card reader to a full POS system – but the Square Reader option is popular with small businesses for its simplicity and size.

The Square Reader model costs £19, plus a 1.75 per cent transaction fee for each payment.

Some of the benefits of the Square card reader include:

money goes into your bank account the next working day – or instantly for a fee
battery life that lasts all day
offline payments (for up to an hour without internet connection)
works with chip and PIN or contactless payments

SumUp card reader

Again, there are a few different machine options with SumUp, but we’ve picked the Air for its cheaper price of £39. The SumpUp Air also comes with a lower transaction fee than other card readers at 1.69 per cent.

Some other benefits of the SumUp card reader include:

all major cards accepted, on both contactless and chip and PIN
money goes into your bank account the following day
over 500 transactions on a single charge

Alternative card readers

If you wanted to look at alternative card readers to see if they’re more suited to your business, these are popular choices:

Shopify WisePad 3 card reader – this card reader is integrated for ecommerce businesses that use Shopify as their platform. If you use Shopify, this is a good option that is user-friendly and has reasonable transaction fees
takepayments A920 – a card machine with hardware that compares to the three readers we suggested above but has higher transaction fees and hidden costs that make it less affordable
WorldPay mobile card reader – a much more expensive option in comparison to the other readers on this list but has more of a focus on security. A good option if you sell more expensive products in your business
Barclays Smartpay Anywhere card reader – a basic card reader that works best for Barclays business account holders. It offers very low transaction fees that will suit businesses that make lots of small transactions
NatWest Tyl Tap to Pay – a card reader with no hardware needed, all you need is a smartphone, internet connection, and a NatWest Tyl account

Are you using one of our three best card readers? Has it made life easier? Let us know in the comments below.

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Photo: Prins Productions/stock.adobe.com

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