"Card machine" now covers a lot of different things, from a terminal fixed to the counter to an app on your phone. The right choice depends on where you take payments, how you connect, and whether you also sell by phone or online. This guide sets out the seven main options and how their costs are usually structured.
Key points
- The main difference between countertop, portable and mobile terminals is how they connect and how far they can travel from the till.
- Tap to Pay lets you take contactless payments on a compatible phone without a separate card reader.
- Virtual terminals and online gateways are for payments where the card is not present, which are priced differently from in-person payments.
- Costs usually combine a hardware element (rent or buy) with transaction charges and, in some cases, monthly fees.
The seven ways to take card payments
1. Countertop terminal
A countertop terminal stays at your checkout. Worldpay describes it as a stationary checkout solution, often paired with a separate PIN pad (Worldpay guide). Connection is typically fixed or close to it: for example, Barclaycard's countertop model connects by Wi-Fi, with optional Ethernet (Barclaycard card readers).
Suits: shops, takeaways and any business where customers always pay at one till.
2. Portable terminal
A portable terminal moves around your premises, usually connecting over Wi-Fi. It suits table service, where you bring the machine to the customer. Some portable models now include a SIM as well; Barclaycard's portable model, for example, connects "via Wi-Fi or mobile data network" (Barclaycard card readers). Check how the specific device connects before assuming it will work outside the building.
Suits: cafés, restaurants and pubs with table service, and larger shops.
3. Mobile (4G) terminal
A mobile terminal has its own SIM, so it can take payments anywhere with mobile signal. Worldpay describes mobile terminals as having a "built-in SIM card that connects to major 4G providers" as well as Wi-Fi (Worldpay guide).
Suits: trades, mobile hairdressers, market traders, delivery and event businesses. If you work in areas with weak signal, ask whether the device can fall back to Wi-Fi or store payments, and what the provider's rules are for doing so.
4. Smart POS terminal
A smart terminal is a card machine with a touchscreen that runs apps, so it can handle things like orders, tips or stock alongside payments. Worldpay describes integrated point-of-sale systems as combining payment processing with wider business functions such as ordering and accounting (Worldpay guide). Barclaycard's range, for example, includes "Smartpay" devices that connect over Wi-Fi and mobile data (Barclaycard card readers).
Suits: businesses that want one device to do more than take payments, or that want their till and card machine to work together.
5. Tap to Pay on a phone
Tap to Pay turns a compatible phone into a contactless payment acceptor using a provider's app. Apple launched Tap to Pay on iPhone for UK businesses on 13 July 2023; it accepts Apple Pay, contactless credit and debit cards and other digital wallets, and needs an iPhone XS or later running the latest iOS, with no extra hardware (Apple Newsroom). Apple lists the payment providers supporting it in the UK, which include Dojo, Square and SumUp (Apple Developer). Android options also exist: SumUp, for example, states that its Tap to Pay on Android works on NFC-equipped phones and tablets running Android 11 or higher (SumUp).
Suits: low-volume or occasional card takers, and as a back-up device. Because it is contactless-only, check how you would handle a customer who needs to insert a card and enter a PIN.
6. Virtual terminal
A virtual terminal lets you type in card details given to you over the phone or by post. Worldpay describes it as "a browser-based payment tool that allows businesses to accept card-not-present payments, such as phone orders, by manually entering card details into a secure payment page", needing no card reader (Worldpay virtual terminal).
Suits: businesses taking deposits or orders by phone, such as trades, B&Bs and caterers.
7. Online payment gateway
A gateway connects your website or online shop to card processing, so customers pay at checkout. It may come from your card provider or from a separate gateway company.
Suits: any business selling online, including those that also sell in person.
Connectivity in brief
| Option | Typical connection | Works away from premises? |
|---|---|---|
| Countertop | Wi-Fi or wired (model dependent) | No |
| Portable | Wi-Fi, sometimes plus SIM | Only if it has a SIM |
| Mobile | SIM (4G), often plus Wi-Fi | Yes, with signal |
| Smart POS | Wi-Fi and/or SIM (model dependent) | Depends on model |
| Tap to Pay | Phone's own data or Wi-Fi | Yes, with signal |
| Virtual terminal | Internet browser | Yes, with internet |
| Online gateway | Your website | Not applicable |
Always check the exact model, as connection options vary between providers and devices.
How costs are usually structured
We are not quoting provider prices here, because they change and depend on your business. Instead, here is how the costs are typically built up.
Hardware: rent or buy. When it reviewed the market, the Payment Systems Regulator (PSR) found that acquirers typically hire terminals for a fixed monthly fee, while the largest payment facilitators (such as Square, SumUp and Zettle) sold card readers up front. At the time of its 2021 report, it found readers selling for between £15 and £45 and terminal hire typically costing £10 to £40 a month (PSR final report, paras 3.69 and 4.20). Prices today will differ, but the two models remain a key choice: buying usually means more upfront and less monthly; renting means the reverse, often with a contract.
Transaction charges. You pay a charge on each payment, as a percentage, a pence amount or both. The PSR found that the largest payment facilitators typically use one headline rate for card-present payments with no additional fees, while acquirers' pricing typically has several headline rates and additional fees (PSR, para 4.20).
In-person versus remote payments. The fees behind your charges vary with the channel, for example online versus face to face (PSR, para 3.19), so virtual terminal and online payments are often priced differently from in-person ones.
Monthly and other fees. Gateways may carry a fixed monthly fee, a per-transaction fee or both, and some providers charge a minimum monthly service charge or a PCI compliance fee (PSR, paras 3.69 and 4.20).
The cheapest-looking option on the headline rate is not always the cheapest overall. A low monthly rental with a higher transaction rate can cost more than a higher rental with a lower rate once your volume grows, and the reverse is true for a quiet business.
Choosing, in practice
Start with where your customers pay: always at the till, at the table, at their door, by phone or online. Then think about signal, volume and whether you need your card machine to talk to your till system. Many businesses end up with a combination, such as a countertop terminal plus Tap to Pay as a back-up, or a terminal plus a virtual terminal for phone deposits.
Compare what your volume would cost
If you already take cards, the quickest way to see whether a different set-up would cost less is to look at your own numbers. You can upload a recent statement for a free comparison. A UK advisor at The Rate Dropper will work out your effective rate and show what the same volume would cost with Worldpay, Dojo, SumUp, Zettle, takepayments, Barclaycard, Elavon and Square. It is free for businesses; we are paid a commission by the provider you choose.
