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How Much Does Card Machine Cost? Rates & Fees Explained (2025 Guide)

What is a Card Machine?

Card machines make it easier for your business to process payments. Card machines make it convenient for your customers to buy goods and services from you.

Latest figures from UK Finance show that more than 57% of all payments in the UK were made using debit or credit cards. Cash payments, on the other hand, only accounted for 15% of all payments.

While card machines offer big benefits, you must understand their cost structure to make the most of them.

Card Machine Costs: Buying vs. Renting

Compare card Machine Costs (2)-ComparedBusiness

The cost of a card machine depends on the provider you choose. The cost of a card machine depends on the provider you choose. You also need to consider other factors like the type of card machine, what additional services the provider offers, how many terminals you need, and whether you buy or rent them.

Purchase Option Cost Range Costs
Buy Outright
£19 - £230 + VAT
One-off upfront fee
Rent
£10 - £30/month
Regular monthly costs

Note: Additional card processing fees apply to both purchasing options, which are detailed further below.

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How much does it cost to buy a card machine?

The cost of buying a card machine can vary based on the type of machine you choose. 

  • One option is to purchase mobile card readers from various providers. These are often the most affordable and are ideal for small businesses.
  • Another option is to buy wireless card readers or machines, which offer greater convenience but typically come with a higher price tag.
  • Traditional card machines, which are more expensive, are often rented rather than purchased outright. Renting can be a cost-effective solution if you need a high-end machine but want to avoid the large initial expense.

How much does it cost to rent a card machine?

In the UK, renting a card machine usually involves signing a contract with a provider. This contract can range from 6 months to 5 years. Many providers offer lower rental rates if you agree to a longer contract. 

However, we suggest that to pay more attention to the transaction fees than just the rental cost. For businesses with a high volume of transactions, these fees can quickly add up and become a huge expense over time. So, while a lower rental cost might seem like a better option, higher transaction fees could end up costing you more in the long run.

Pros & Cons of Buying vs. Renting Card Machines

Businesses in the UK rent card machines often. But you may purchase card machines outright depending on your business needs. Here are the pros and cons of buying or renting your card machine.

Option Pros Cons
Buying
One-off payment, avoiding monthly expenses.
Maintenance and repair costs post-warranty are high. Risk of technology becoming outdated.
Renting
Low upfront cost. Includes repair/replacement, technical support, and upgrade options.
Long-term contracts can be restrictive and more expensive over time compared to buying outright.

Breakdown of Card Machine Costs

When looking at the costs of card machines, start by understanding the expenses that come with the machine and the provider itself. This covers both the initial costs and the ongoing fees for using the machine.

1. Card machine costs

These are the costs specifically associated with purchasing or renting a card machine and using it for transactions.

  • Terminal costs:
    This is the cost of either buying or renting the card machine. Depending on your choice, you’ll either pay a one-time purchase fee or an ongoing rental fee.
  • Set-up fees:
    A one-time fee, typically between £50 and £100, for setting up the card machine system.
  • Shipping costs:
    Fees for delivering the card machine to your location.

2. Transaction fees

A percentage fee is charged for each transaction, generally between 1% and 3%. Transactions with premium cards like American Express may have higher costs.

3. Cancellation fee

This fee is applied if you terminate your contract early, which can vary based on your provider’s terms.

4. Monthly charges

Some providers require a minimum monthly fee called a Monthly Minimum Service Charge (usually between £10 and £20). You’ll pay the difference if your transactions don’t meet this minimum. This ensures the service provider covers its costs, even if a business’s card transactions are low.

Cost Category Cost Range
Terminal Costs
Varies (one-time or monthly)
Set-Up Fees
£50 - £100
Shipping Costs
Varies
Transaction Costs
1%-3%
Monthly Minimum Service Charge
£10 - £20
Cancellation Fee
Varies with the provider

Understanding Merchant Account Costs

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Once you’ve understood the costs associated with the card machine itself, it’s also important to understand the additional costs related to the merchant account. This account is necessary for processing card payments and includes several ongoing fees.

1. Basic Merchant Account Fees

  • Merchant account costs:
    These are essential fees for maintaining a bank account that allows you to process card transactions.
  • Merchant service charge:
    A small fee, usually between 0.2% and 0.3%, is charged by banks for each credit card transaction processed.

2. Compliance and Security Fees

A monthly or annual fee, typically around £5, is charged for meeting Payment Card Industry Data Security Standards. Some providers may cover this fee.

3. Transaction-Related Fees

  • Refund fees:
    Fees incurred when processing refunds to customers.
  • Foreign transaction fees:
    Additional charges for transactions involving foreign cards like American Express or currency conversion.
  • Chargeback fees:
    Costs associated with handling disputes if a customer wants to reverse a payment.
Cost Category Typical Cost Range
Merchant Account Costs
Varies
Merchant Service Charge
0.2%–0.3%
PCI Compliance Fee
£5 per month (sometimes covered)
Refund Fees
Varies
Foreign Transaction Fees
Varies
Chargeback Fees
Varies

Card Machine Pricing Models Explained

Payment processors offer 4 different types of pricing structures. Let us go through these card machine pricing models you must know when choosing a payment processor:

1. Interchange plus or cost-plus pricing

Your payment processor charges you all three fees, including a transparent markup fee in this pricing structure. The card machine charges get easier to compare between different providers, and increase merchants’ trust in service providers.

A typical interchange plus pricing may look like:

  • Interchange fee: 0.3%
  • Card scheme fee: 0.1%
  • Provider markup: 0.4% or 60p

2. Tiered pricing

In this pricing strategy, your payment processor divides all your card transactions into different categories, like qualified, mid-qualified, and non-qualified. Different card machine charges are applied to each category, except you don’t know the criteria used to group these transactions.

Service providers could also include factors like minimum transaction value or volume of transactions, and may change their tiered pricing too.

3. Blended pricing

The three fees, i.e., interchange, card scheme, and processor markup, are combined into one single percentage charged per transaction. This means you can’t see exactly how much each fee goes to, but it is easier to understand for consumers.

A typical blended pricing structure may look like:

  • 0.5% – 3.5% + 5p – 30p per transaction.

4. Flat rate pricing

With a flat rate pricing structure, payment processors combine the three fees into a single percentage (like in a blended structure), but the percentage does not vary with card type.

A typical flat pricing structure can look like:

  • 3 % + 15p per transaction.

Card machine prices: Mobile vs. portable vs. countertop

Depending on your business’s unique needs, you might want to consider different types of card machines: mobile, portable, and countertop. Each comes with its own set of features, working, benefits, and, importantly, cost implications. 

Card Machine Type Cost Features Benefits
Countertop card machine
£15-£20
Fixed location connectivity, High-security
Ideal for retail with a single payment point
Wireless/Portable card machine
£20– £30
WiFi/Bluetooth connectivity, Portable
Flexible for tableside or outdoor payments
Mobile Card Machine
£30 – £65
Uses mobile connection, Compact design
Perfect for on-the-go transactions

How to Select A Card Machine For Your Business?

Compare card Machine Costs-a man holding 3 credit cards -ComparedBusiness
  1. Understanding your business needs

When choosing a card machine, it’s crucial to think about what your business needs. Different types of card machines cater to different roles; sometimes, mixing and matching can be the best way. Learn how to accept credit card payments in 3 ways.

  1. Examples of card machine usage

Take a restaurant, for example. They might have a countertop card machine at the register for quick checkouts but also use mobile card machines for tableside payments.

You can also use this as a guide to know what type of card machine is right for you.

  1. Buying vs. renting: what’s right for you?

Deciding whether to buy or rent these machines depends a lot on your business’s size and type.

  1. Pros and cons of renting

Large retail stores rent their card machines to keep up with the latest technology. Renting can be handy for seasonal businesses too, as it allows for scaling up or down without huge commitments.

  1. Pros and cons of buying

Mobile businesses, like food trucks, tend to move around a lot, making a portable card reader a smart purchase. Buying the equipment outright means getting rid of regular rental fees and can be more cost-effective over a long time.

  1. Making the right choice for your business

Each choice has its upsides and downsides. What works best really depends on the nature of your business and how you manage your finances.

  1. Evaluating your options

Consider how each option aligns with your day-to-day operations, customer service approach, and financial goals to make the best decision for your business’s future.

Ready to Choose the Right Card Machine for Your Business?

We at ComparedBusiness UK are experts in saving your time and money. Just submit your business requirements for card machines in less than 2 minutes & we will get back to you with detailed quotes from a list of top card machine providers in the UK. You can pick and choose the best option for your business.

FAQs

The decision to rent or buy a credit card machine depends on your business’s specific needs and circumstances. Renting may be the best option if you’re looking for lower upfront costs and flexibility to upgrade to the latest technology without additional investment. Whereas, buying a credit card machine might suit you if you prefer owning the equipment outright, avoiding ongoing monthly rental fees, and planning to use the machine for a long time.

Merchant account fees, transaction costs (1% to 3%), monthly minimum service charges, PCI compliance fees, and other related fees. Read the blog in detail to learn in detail.

Setup times in the UK can vary depending on the provider you choose. Typically, you can use your device after a few days or a week once the device is delivered.

Written by:

Picture of Isabella Robinson
Isabella Robinson
Isabella Robinson is a seasoned business content writer, leveraging several years of experience to craft impactful narratives that seamlessly blend business insights with engaging storytelling across diverse industries. Her expertise lies in delivering compelling content that resonates with audiences.

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