Card Machine Rental vs Purchase UK 2025: Which is Cheaper?

Quick Answer: It Depends on Your Business Type

Cost Comparison: Real Numbers

Option 1: Free Rental (with Contract)

Example: Dojo

• Terminal cost: £0 upfront
• Monthly rental: £0
• Contract: 12 months
• Exit fee if leaving early: £295
• Replacement if broken: FREE

12-month total cost: £0 ✅

24-month total cost: £0 ✅

36-month total cost: £0 ✅

Option 2: Paid Rental (Month-to-Month)

Example: Traditional providers

• Terminal cost: £0 upfront
• Monthly rental: £15-£25
• Contract: Rolling or 12-24 months
• Exit fee: £0-£250
• Replacement: FREE

12-month total: £180-£300

24-month total: £360-£600

36-month total: £540-£900

Option 3: Purchase (Own Outright)

Example: SumUp, Square

• Terminal cost: £19-£269 upfront
• Monthly cost: £0
• Contract: None
• Exit fee: £0
• Replacement if broken: £19-£269 (buy new)

12-month total: £19-£269

24-month total: £19-£269 (same)

36-month total: £19-£269 (same, unless replacement needed)

Break-Even Analysis

Hidden Costs to Consider

Rental Hidden Costs

• PCI compliance fees: Some providers charge £5-£10/month (usually included now)
• Paper rolls: £15-£25/month for busy businesses (digital receipts eliminate this)
• Exit fees: £250-£500 if leaving contract early
• Rate increases: Providers can raise fees with 30 days notice
• Downgrade fees: Some charge if reducing transaction volume

Purchase Hidden Costs

• Replacement cost: £19-£269 if terminal breaks (no warranty after 1 year typically)
• Technology obsolescence: Terminals may become outdated in 3-5 years
• No support: Troubleshooting is DIY (though providers offer email support)
• SIM cards: If using 4G model, £5-£10/month for data

Which Businesses Should Rent?

Rental makes sense for:

• High-volume businesses - Want latest technology and instant replacements
• Multi-location operators - Easier to manage 5-10+ terminals on rental
• Businesses in contracts - If already committed, free rental is best
• Risk-averse businesses - No capital outlay, predictable costs

Which Businesses Should Purchase?

Purchase makes sense for:

• Low-volume businesses - Terminal lasts longer with light use
• Mobile businesses - Flexibility to switch providers anytime
• Seasonal businesses - No ongoing fees during quiet months
• Cost-conscious - Minimize long-term expenses
• Tech-savvy - Comfortable troubleshooting issues

Total Cost of Ownership: 3-Year Comparison

Decision Framework

Choose FREE RENTAL if:

• You're comfortable committing to 12 months
• You want latest technology with free upgrades
• You value immediate free replacements
• The transaction fees are competitive (like Dojo 0.9% + 9p)

Choose PURCHASE if:

• You want complete flexibility (switch providers anytime)
• You're a seasonal or part-time business
• You want to minimize long-term costs
• You're confident you can manage hardware yourself

Best Options by Business Type

• Established businesses (2+ years): Free rental (Dojo) - no risk
• New businesses (testing): Purchase (SumUp £19) - flexibility
• High volume (£20,000+/month): Free rental - hardware failures covered
• Low volume (£3,000/month): Purchase (SumUp) - avoid monthly fees
• Mobile/seasonal: Purchase - only pay when using

Conclusion

For most UK businesses in 2025, free rental (like Dojo offers) provides the best value with zero hardware cost and protection against breakage. However, ultra-low-cost purchase options (SumUp £19) offer unbeatable flexibility for small or seasonal businesses.

The bigger question isn't rent vs buy - it's choosing the right PROVIDER with competitive transaction fees. A provider charging 1.5% vs 0.9% costs you far more over time than any hardware decision.