Best Card Machine for a New Business in the UK
Start with a pay-as-you-go reader: SumUp at 1.69% flat, or Square/Zettle at 1.75% flat. There is no credit or underwriting barrier, no trading-history requirement, no monthly fee and no contract. You can be taking cards the week you open.
Plan to switch to a negotiated acquirer deal once card takings pass roughly £4,000-£5,000 a month: that is where bespoke rates plus a monthly fee start beating a flat 1.69%-1.75%.
Rates checked: August 2026
Why pay-as-you-go wins for startups
A brand-new business has two problems a contracted acquirer cares about: no trading history and unpredictable volume. Acquirers underwrite each application for a dedicated merchant account, and without trading history they may decline, quote cautiously, or ask for more paperwork. Pay-as-you-go providers sidestep all of it: SumUp, Square and Zettle aggregate businesses under their own merchant account, so there is no individual underwriting barrier and most sign-ups are approved the same day.
Just as important: with no contract, a pay-as-you-go reader is a free option on your own future. If the business pivots, seasonal trade dips, or you close, there is no notice period and no exit fee. A 12-36 month acquirer contract signed before you know your real card volume is a bet you do not need to make on day one.
The startup view: pay-as-you-go vs contracted acquirer
| Pay-as-you-go (SumUp, Square, Zettle) | Contracted acquirer | |
|---|---|---|
| Trading history needed | No: sign up online, usually approved same day | Underwritten per business; new businesses may be declined or quoted cautiously |
| Transaction fee | SumUp 1.69%, Square 1.75%, Zettle 1.75%, all flat | Bespoke: e.g. Dojo typically 1.2%-1.9% depending on card turnover |
| Monthly fee | £0 | Typically £10-£60; Dojo terminal rental from £20/month |
| Upfront cost | Buy the reader outright, £0 setup fee | Setup fees £0-£200 depending on acquirer |
| Contract | None | Often 12-36 months; Dojo offers 12-month or rolling |
| Cheapest when | Card takings under ~£4,000-£5,000/month | Card takings above ~£4,000-£5,000/month |
Figures are providers' published or typical advertised pricing, checked August 2026. Bespoke rates are quoted per business, and we have seen Dojo quotes as low as 0.29% for high-turnover businesses; always confirm with a current quote.
Worked example: a café's first year
Assumptions: a new café opens taking £3,000 a month by card, growing to £8,000 a month by month twelve. Costs below are pure arithmetic on the stated rates.
Months 1-6: pay-as-you-go
- SumUp at 1.69%: £3,000 × 1.69% = £50.70/month, no monthly fee
- Square or Zettle at 1.75%: £3,000 × 1.75% = £52.50/month
- Any acquirer deal would need to beat ~£51 a month after adding a £10-£60 monthly fee. At this volume it rarely can
Month 12: takings hit £8,000/month
- SumUp at 1.69%: £8,000 × 1.69% = £135.20/month
- A negotiated deal, if quoted at the bottom of Dojo's typical 1.2%-1.9% range: £8,000 × 1.2% = £96, plus terminal rental from £20/month = from £116/month
- Even mid-range at 1.5%: £8,000 × 1.5% = £120 + £20 = £140/month, roughly line-ball, and improving as volume grows
The quoted rate depends on your turnover, average transaction value and card mix. By month twelve the café has real trading history to negotiate with, which is exactly the leverage it lacked on day one.
That is the whole strategy: start flat-rate, and re-quote the market when you cross roughly £4,000-£5,000 a month. The full arithmetic behind that crossover is on our UK card machine rates page, and switching provider typically takes 1-4 weeks when the time comes. There is no notice period or exit fee on the pay-as-you-go side.
Which reader to start with
On price alone, SumUp wins at 1.69% flat. Square (1.75%) earns its extra 0.06% if you want its free EPOS ecosystem; Zettle (1.75%) suits businesses already settled into PayPal. See our cheapest card machine breakdown for the head-to-head.
MerchantSwitch is a free comparison service; we are paid by providers when we successfully match a business. We are an introducer, not a lender or acquirer, and we are not regulated by the FCA.
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