The short answer is no, but there are some lower-cost options out there.
When thinking about costs, consider your monthly fees along with your transaction fees, set-up fees and any other charges that may be hidden in the small print.
We’ll be taking a look at some of the cheapest card readers for your small business and whether you’re better off renting or buying.
Should I buy or rent a card reader?
Purchase
Pros
Purchasing card readers means that you have them on standby – handy for unexpectedly busy times
If you’re likely to use the terminal again, it’ll be worth purchasing
No worry about extra fees beyond transaction fees
Easier to switch between merchant service providers
Cons
The machine may become obsolete over time and you’ll have to fork out for a new one
Any purchases and repairs are your responsibility
Rental
As some of the contracts below suggest, rental card readers are more suitable for seasonal or pop-up businesses.
Pros
Can fill demand at busy times such as Christmas
Providers are good at meeting requirements at short notice
Rental units are more robust as they can passed between users and so are expected to be better able to handle knocks
If something goes wrong, your provider can sort it out quickly
Cons
There may be hidden fees such as set-up
You have to keep the card readers in an acceptable state of repair
The 8 cheapest contactless card reader deals out there
How much you pay will come down to your turnover, what card reader you have and what kind of transactions you take. Let’s take a look at the cheapest deals.
>See also: Why businesses should go cashless: pros and cons
Purchase
Square
Reader price: £19 + VAT (for first readers, then subsequent readers are £25)Monthly fee: NoneTransaction fee: 1.75 per cent per transaction
Features:
Connect to Apple or Android
Next day settlement
Take payments while offline
Custom pricing available
Get started with Square
Tide Card Reader
Reader price: £159 + VATMonthly fee: NoneTransaction fee: From 0.79% + 3p
Features:
Lifetime free 4G connectivity
Accept Contactless, Chip + Pin, Digital wallets
A compact device that allows you to take both in-store and mobile payments
Funds typically settled within three workgin days
Get started with Tide
TakePayments
Reader price: Custom depending on model (contact provider)Monthly fee: NoneTransaction fee: between 0.3%-2.5% + flat fee
Features:
Shorter contract lengths
Tailored pricing model
No setup or exit fees
Payments settled next working day
Get started with TakePayments
SumUp Air
Reader price: £19 + VAT (for first reader only, then £25)Monthly fee: NoneTransaction fee: 1.69 per cent per transaction (If you use SumUp’s business account as a payout account, you can get a 1.49 per cent transaction fee until the end of the next month you booked from)Features:
Smartphone connectivity
Unlimited free bank transfers on incoming and outgoing payments
Process over 500 sales on a single charge
All-day battery life
Compare card payment machine quotes
PayPal Reader
Reader price: From £29 + VATMonthly fee: NoneTransaction fee: 1.75 per cent per transaction, 1.75 per cent for PayPal and QR codes, 2.5 per cent for Payment Links, 2.5 per cent for Zettle invoices
Features:
Integrates with Adobe Commerce and BigCommerce as well as other platforms
Sell and accept gift cards
PayPal claims you can switch the reader on and start taking payments within just 7 seconds
8-hour battery life
Compare card payment machine quotes
>See also: Best payment apps for small businesses
Lopay
Reader price: £24 plus P&P and £49 plus P&P for additional card readersTransaction fee:
0.79 per cent for weekly payment
0.99 per cent next day
1.79 per cent for instant payment
One per cent to the above for American Express and international payments
0.25 per cent for payments via Point of Sale
0.49 per cent for payments and 0.69 per cent for subscriptions.
Features:
Choice of payments done instantly, next day or weekly
Smart tipping feature
Export reports to add to your preferred accounting software
Compare card payment machine quotes
Rental
Tyl by Natwest
Reader price: From £13.99 + VAT Transaction fee: Between 1.39 per cent and 1.99 per cent + 5p (more for American Express transactions)
Features:
Eight hours of battery life on one charge
Use Tyl Portal at no extra cost; 5.99-inch glass touchscreen
Fingerprint recognition
Setup and start taking payment within 48 hours
Compare card payment machine quotes
Barclaycard Flex
Ideal for start-ups and small businesses
Monthly fee: £15 a month (excl. VAT)Transaction fee: 1.6 per cent per transaction
Features:
Switch between Bluetooth, GPRS, Wi-Fi and mobile data networks
Up to 700 sales a day on a full charge
Tailored transaction fees depending on business turnover
Payments can be in your account as soon as the next working day (if they’re taken before 9pm)
Compare card payment machine quotes
Dojo Go
Reader price: Available for £15 a month if you have over £100,000 turnover (£39.99 per month if your turnover is over £100,000). Or pay a one-off fee of £79. Transaction fee: 1 per cent on transactions over £4k in takings per month
Features:
Receive your takings the next day
Dojo may pay up to £3,000 in exit fees to your previous provider
Instant fraud detection
Point-to-point encryption
Compare card payment machine quotes
Which card reader should I buy?
Which low-cost card reader you go for is up to you but remember that factors beyond price come in here too. Think about your functionality needs such as tableside payments if you’re a restaurant or increased Amex payment fees if you take a lot of payments from customers who use American Express.
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