UK card payments explainer
What is a card machine?
A card machine is a UK device that takes contactless, chip-and-PIN, and mobile-wallet payments from your customers and settles the money into your business bank account. The machine is the visible part. The invisible part is the UK-licensed acquirer or payment facilitator that actually moves the money. This page explains both.
In one sentence
A UK card machine is a small device (countertop, mobile, or app-on-phone) connected to a UK-licensed acquirer that authorises card payments and pays them into your UK business bank account, typically next-day or same-day.
The three types of card machine in the UK
- Countertop terminal , sits next to the till. Plugged into mains + ethernet. Best for shops, salons, takeaways with a fixed sales point.
- Mobile terminal , runs on Wi-Fi or 4G SIM. Battery-powered, walks with you. Best for hospitality (table service), trades, delivery, market stalls.
- Tap to Pay on iPhone (or SoftPOS) , no separate hardware. Your iPhone or Android phone becomes the card reader. Best for sole traders + brand-new businesses who want to start taking card payments today without buying a device.
Who actually moves the money
The card machine is the device. The money is handled by a UK-licensed company called an acquirer (Worldpay, Barclaycard, takepayments, Dojo) or a payment facilitator (SumUp UK, Zettle by PayPal UK, Square UK, Stripe). Both are licensed and regulated in the UK. The difference matters when comparing fees:
- Acquirers typically charge interchange-plus pricing (raw card-scheme fee + transparent margin), require a contract of 12-36 months, and offer lower per-transaction fees at higher volumes.
- Payment facilitators typically charge a single blended rate (e.g. 1.69% per tap), require no contract, and onboard you faster (often same day).
For a £40k/year takeaway, facilitator pricing is usually slightly cheaper and definitely easier. For a £400k/year restaurant, acquirer pricing wins at volume.
What you need to start
- A UK business bank account (sole trader, Ltd, or partnership). Personal accounts work for some facilitators but not most.
- A UK business address (registered office for Ltd; trading address for sole trader).
- For acquirers: an underwriting decision based on your trading history, sector, and expected card volume. Takes 2-7 working days.
- For facilitators: a basic KYC check (ID + business proof). Takes minutes to hours.
What it costs
- Per-transaction fee: 0.7% (volume acquirer) to 2.75% (facilitator + AMEX premium).
- Monthly terminal rental: £0 (facilitator, pay-as-you-go) to £30/mo (acquirer with rental contract).
- Device cost: £29-£100 (facilitator one-off purchase) or £0-£500 deposit (acquirer rental).
- Online gateway / e-commerce add-on: often free with the acquirer/facilitator's web SDK; sometimes £20-50/mo standalone.
Native-language onboarding
If your first business language is Polish or Romanian, see the language-specific pages:
- Polish-speaking card machine for UK businesses → /pl/ comparison hub
- Romanian-speaking card machine for UK businesses → /ro/ comparison hub
- Full list of UK-licensed providers we compare