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, and you can verify any provider's authorisation on the FCA Financial Services Register. 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