What are card machines?
Card machines allow businesses to accept payments from debit and credit cards with just a quick swipe, tap, or insert. These machines, a staple at checkout counters everywhere, make transactions smoother and faster for customers and businesses. They are also known as card terminals or PDQ machines.
Why does your business need a card machine?
Card machines make it easier for your business to process payments and make it convenient for your customers to buy goods and services from you. According to UK Finance, contactless and card payments were the most used payment options in 2023.
Card machines also help your business increase sales by reaching a broader customer base, and streamlining business operations.
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Costs of card machines
One of the biggest factors you’ll need to consider while buying card machines is their price. Here, we break down the different elements of the price of card machines to help you choose the right card machine for your business.
How much does a card machine cost?
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 it.
| Purchase Option | Cost Range | Terminal Costs |
|---|---|---|
|
Buy Outright |
£19 - £230 + VAT |
One-off upfront fee |
|
Rent |
£10 - £25/month |
Regular monthly cost |
Note: Additional card processing fees apply to both purchasing options, which are detailed further below.
Breakdown of card machine price
To simplify, we split expenses into merchant account fees and card machine prices, helping you make informed choices for your business. Merchant accounts process your card payments, so when we talk about card machine expenses, you’ll know how it all fits together for your business.
Note that these costs apply whether you buy or rent a card machine.
Merchant account-related costs
Merchant account costs: Fees for the bank account needed to take card payments.
Merchant service charge: Fees banks charge for accepting credit card transactions, typically 0.2% to 0.3%.
PCI compliance fee: Monthly or annual fee for meeting Payment Card Industry Data Security Standard requirements. Providers may charge around £5 a month, though some providers might cover this compliance, negating the fee.
Refund fees: Charges for processing refunds.
Foreign transaction fees: Additional fees for transactions involving foreign cards and currency conversion.
Chargeback fees: Fees applied when a customer disputes a transaction, potentially including the loss of the transaction amount if resolved in the buyer’s favor.
Card machine-related costs
Terminal costs: Upfront fees or monthly costs for buying or renting the terminal.
Transaction costs: Percentage fees for each transaction, generally between 1% and 3%, with higher fees for Amex transactions.
Monthly minimum service charge: Required minimum amount in transaction fees, with payments of usually between £10 and £20 a month if the minimum is not met.
Set-up fees: Charges for setting up the system, around £50 to £100.
Shipping costs: Fees for delivering the device.
Cancellation fee: Fees for terminating a contract early.
Card machine price: 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, benefits, and, importantly, cost implications.
| CardMachine Type | Cost | Features | Benefits |
|---|---|---|---|
|
Countertop |
From £15/month |
Fixed location connectivity, High-security |
Ideal for retail with a single payment point |
|
Wireless/Portable |
From £20 - £25/month |
WiFi/Bluetooth connectivity, Portable |
Flexible for tableside or outdoor payments |
|
Mobile |
Buy from £20 – £60 |
Uses mobile connection, Compact design |
Perfect for on-the-go transactions |
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.
| Options | 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. |
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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.
