Free Card Readers in 2026: What’s the Catch? Fees, Contracts & Alternatives Quick answer
Free card readers can be legitimate, but they are rarely the cheapest option for every business – a “free” card reader can mean:
no upfront hardware cost
a limited-time promotion
a discounted first reader
a card reader included in a contract
a reader bundled with a payment account
a reader included with monthly rental
Tap to Pay with no separate card reader
a provider recovering costs through transaction fees
The main cost is usually not the card reader itself, the real cost comes from:
transaction fees
monthly fees
payout fees
contract length
minimum usage rules
replacement hardware costs
chargeback fees
online payment fees
manual entry fees
POS software fees
settlement speed
As a simple guide:
Option Best for
Free or discounted card reader
Startups and very low-volume sellers
Higher long-term transaction fees may matter
Cheap pay-as-you-go reader
Sole traders, pop-ups and mobile sellers
Simple, but may lack advanced features
Tap to Pay on phone
Occasional sellers and mobile businesses
Device compatibility and app limits
Monthly card machine rental
Regular in-person payments
Contract and monthly fees
Merchant account with terminal
Higher-volume businesses
More setup, but lower rates may be possible
POS system with payments
Retail, cafés, restaurants and multi-site businesses
Higher total cost, but more features
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Square card reader
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Zettle card reader
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Takepayments card machine
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Contents
Our Favourite Free Card Reader
Understanding Free Card Readers
Factors to Consider When Choosing a Free Card Reader
Our Thoughts on Finding a Free Card Machine
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: September 2026
Key takeaways
“Free” card reader deals usually still involve transaction fees.
Some providers offer discounted first readers rather than fully free readers.
PayPal now uses PayPal Point of Sale branding; Zettle by PayPal is now PayPal Point of Sale.
PayPal Point of Sale currently lists a first card reader at £29 excluding VAT , additional readers at £69 excluding VAT , and a 1.75% card/contactless transaction fee.
Square currently lists Square Reader at £19 + VAT and 1.75% for UK-card in-person transactions.
SumUp says its standard UK card reader fee is 1.69% per transaction , but hardware prices and promotions vary.
A free or cheap reader can suit occasional sellers, but regular sellers should compare total monthly card processing cost.
Businesses processing higher volumes may be better off comparing merchant accounts or card machine contracts.
Tap to Pay can remove the need for a separate reader in some cases, but check phone compatibility, payment limits and features.
Always compare hardware cost, transaction fee, settlement speed, support and contract terms together.
Are free card readers really free? Sometimes the hardware may be free or discounted, but card payments are never completely free, as you still need to pay for payment processing.
A free card reader may be offered because:
the provider wants new customers
the reader is part of a promotion
fees are recovered through transaction charges
the reader is bundled with a monthly plan
the contract has minimum usage
the reader is leased rather than owned
the provider expects long-term payment volume
The better question is not:
“Can I get a free card reader?”
It is:
“What is the cheapest way for my business to take card payments?”
What is the catch with free card readers? The catch is usually one or more of the following.
Possible catch
Higher transaction fees
You pay more every time you take a card payment
Limited features
Basic reader may not include receipts, printer, POS or integrations
Smartphone required
Some readers need a phone or tablet to work
Slower checkout
Basic readers can be slower than countertop terminals
Payout delays
Settlement may take longer unless you pay extra
Contract terms
“Free” hardware may come with a longer agreement
Replacement cost
Lost or damaged readers may cost extra
Upgrade cost
Better hardware may be charged separately
Minimum usage
Some promotions require a minimum processing volume
Provider lock-in
You may be tied to one payment provider
Higher online fees
Online, invoice and manual entry fees may be higher than in-person fees
Understanding Free Card Readers When we talk about “free” card machines, it’s important to understand what “free” really means, remember, many providers offer free card readers but often attach conditions such as:
Transaction volume requirements – You may need to process a minimum number of transactions to qualify for the free offer.
Higher transaction fees – Some providers offset the cost of the free reader by charging higher per-transaction fees.
Subscription fees – Some companies provide a free reader, but you might need to pay a monthly fee for using their services.
Limited features – Free card readers may lack advanced features like contactless payments or POS integration.
Before committing, we suggest you carefully review the terms and conditions to ensure a free card reader is the best option for your business.
Free card reader vs cheap card readerMany UK card readers are not free, but they are cheap enough that the hardware cost is not the most important factor.
Option Typical upfront cost Main ongoing cost Best for
Free reader promotion
£0
Transaction fees
New or low-volume sellers
Discounted first reader
£10-£30+
Transaction fees
Startups and test users
Cheap pay-as-you-go reader
£20-£80+
Transaction fees
Sole traders and mobile sellers
All-in-one terminal
£100-£200+
Transaction fees
Businesses wanting standalone hardware
Rented card machine
£10-£30+/month
Transaction fees and rental
Regular in-person businesses
Full POS system
£20-£100+/month plus hardware
Software, hardware and fees
Retail, hospitality and multi-site businesses
Best free or low-cost card reader options UK
Provider or route
Hardware position
Transaction fee position
Best for
Square
Low-cost reader
Published fixed-rate fees
Small businesses, pop-ups, salons, cafés
SumUp Air
Low-cost reader options
Standard UK fee listed at 1.69%
Mobile sellers, market traders, tradespeople
PayPal Point of Sale
Discounted first reader and PayPal POS ecosystem
1.75% card/contactless fee currently listed
Businesses wanting PayPal-linked POS
Tap to Pay
No separate reader needed
Provider transaction fees apply
Occasional sellers with compatible phones
Dojo
Card machine contract
Bespoke or quote-based
Regular in-person payments
Worldpay Zip
Merchant services and terminals
Quote/package-based
takepayments
Card machines and merchant services
Quote-based
SMEs wanting card machine support
Tyl by NatWest
SME card payments
Quote/package-based
Businesses wanting bank-backed provider
Clover
POS and card payments
Package-based
Retail, hospitality and service businesses
Merchant account provider
Terminal and card processing
Often negotiable
Tap to Pay: the card reader alternative Tap to Pay can let some businesses take contactless payments without a separate card reader.
Depending on provider and device, it can allow payments on:
compatible iPhones
compatible Android devices
provider payment apps
Tap to Pay can suit:
tradespeople
market stalls
mobile hair and beauty
pop-ups
service businesses
occasional card payments
small businesses testing card acceptance
Watch out for:
phone compatibility
staff device use
battery life
receipt options
POS integration
transaction fees
refund process
support
customer perception
Free card reader vs card machine contract
A free or cheap card reader is usually best for smaller, lower-volume or mobile businesses.
A card machine contract may be better if you process regular payments.
Feature Free or cheap card reader Card machine contract
Upfront cost
Low or none
Often rental or included
Monthly fee
Often none
Usually yes
Transaction fees
Often fixed-rate
May be lower or negotiable
Best for
Low-volume sellers
Regular/high-volume businesses
Hardware
Basic reader or app
Standalone terminal
Receipt printing
Usually optional or external
Often available
POS integration
Basic to moderate
Better for retail/hospitality
Support
Platform support
Provider support varies
Contract
Often flexible
May be 12-36 months
Settlement
Provider-dependent
Provider-dependent
Long-term cost
Can rise with volume
May be cheaper at scale
When is a free card reader worth it? A free or cheap card reader may be worth it if you:
are just starting out
take payments occasionally
sell at events
trade seasonally
are testing card payments
have low monthly turnover
want no long contract
need portable payments
already use a smartphone or tablet
do not need complex POS features
are a sole trader or microbusiness
Examples:
Business type
Market stall
Portable and low commitment
Mobile hairdresser
Tradesperson
Useful for deposits and final payments
Pop-up shop
Startup café
Good while testing demand
Charity event
Simple temporary payment acceptance
Sole trader
Keeps costs low at the start
Factors to Consider When Choosing a Free Card Reader While a free card reader may seem like a great deal, businesses need to consider the hidden costs that could affect their bottom line, so here are some key factors to keep in mind:
Transaction fees
Even if the card reader is free, transaction fees are unavoidable. Keep in mind that these fees vary between 1.5% and 3% per transaction, so it’s important to compare the rates and understand how they will impact your profits.
Compatibility
Ensure the card reader is compatible with your business’s existing devices and POS systems.
Some free readers require a smartphone or tablet to process transactions.
Customer support
Does the provider offer reliable support in case of technical issues?
Check reviews to see if businesses have faced problems with customer service or transaction delays.
Additional costs
While the initial reader may be free, be sure to check:
Subscription fees – Some providers charge a monthly fee to use the service.
Hardware upgrades – Free readers may not support contactless payments or chip-and-PIN transactions, requiring an upgrade.
Replacement costs – If your reader is lost or damaged, you might need to pay for a replacement.
Ease of use
A user-friendly interface can save your business time and reduce the risk of transaction errors.
Look for simple and intuitive software that doesn’t require extensive training.
When should you avoid a free card reader? A free or cheap reader will not be the best fit if you:
process high monthly card turnover
have queues at checkout
need fast standalone terminals
need receipt printing
need EPOS integration
run a busy restaurant
run a multi-till retail shop
need table service
need staff permissions
need detailed stock control
need next-day settlement
want lower bespoke rates
need a provider account manager
process lots of refunds
take many phone payments
need PCI support
want a full merchant account
What to compare before choosing a free card reader Before choosing, compare:
reader price
whether it is genuinely free
promotion terms
transaction fee
online payment fee
manual entry fee
payment link fee
invoice fee
refund fee
chargeback fee
payout speed
instant payout cost
app requirements
smartphone or tablet compatibility
battery life
receipt options
POS features
inventory tools
accounting integrations
customer support
contract length
cancellation terms
replacement cost
whether fees change after promotion
Compare Card Machine Deals
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Best option by business type
Business type
Sole trader
Cheap reader, Tap to Pay or no-contract card reader
Market trader
Portable reader with no monthly fee
Mobile hair or beauty
Tap to Pay or small card reader
Tradesperson
Mobile reader with payment links and invoices
Café
Reader or terminal with fast checkout
Restaurant
Terminal, POS or EPOS system
Retail shop
POS-integrated reader or card machine
Pop-up shop
Event seller
Portable reader with reliable mobile data
Hotel
Merchant account and full payment setup
High-volume retailer
Merchant account with lower negotiated rates
Multi-site business
Card machine provider with central reporting
Free reader vs merchant account
Feature Free or cheap card reader Merchant account/card machine provider
Setup
Usually quick
More application checks
Upfront cost
Low
Varies
Monthly fee
Often none
Often yes
Transaction fee
Fixed-rate
May be lower or bespoke
Best for
Low-volume or mobile sellers
Regular/higher-volume businesses
Settlement
Provider-dependent
Provider-dependent
Support
Platform-led
Provider/account support varies
Contract
Often flexible
May involve contract
Custom pricing
Less common
More likely
Best next step
Good starter option
Compare when card volume grows
Our Thoughts on Finding a Free Card Machine A free card reader can help reduce initial costs, making it easier for small businesses to start accepting card payments. However, businesses should carefully evaluate the terms to avoid unexpected costs.
We think they are best for:
Small businesses and startups testing out card payments.
Seasonal businesses looking for a low-cost, flexible solution.
Mobile vendors who need a lightweight, portable device.
We think you should consider an upgrade if:
You process high transaction volumes (as higher transaction fees can outweigh initial savings).
You need advanced features like invoicing or inventory tracking.
Your business relies on quick transactions, as basic readers can be slower.
What is our final verdict?
FAQs Are free card readers really free?
Sometimes the hardware may be free or discounted, but transaction fees still apply every time you take a card payment.
What is the catch with free card readers?
The catch is usually transaction fees, limited features, smartphone requirements, contract terms, payout fees, replacement costs or minimum usage conditions.
Can I get a free card machine for my business?
Some providers may offer free or discounted card machines through promotions or contracts. Always check transaction fees, monthly fees and contract length.
Is a free card reader cheaper than buying one?
Not always. A cheap paid reader with lower transaction fees may cost less over time than a free reader with higher fees.
What is the cheapest card reader in the UK?
The cheapest option changes because providers run promotions. Compare Square, SumUp, PayPal Point of Sale, Tap to Pay and merchant account options using current fees.
Is Zettle still called Zettle?
PayPal says Zettle is now PayPal Point of Sale. Existing Zettle users may still see the old name in some account areas, but new buyer-facing content should use PayPal Point of Sale.
What is PayPal Point of Sale?
PayPal Point of Sale is PayPal’s in-person payment and POS system, formerly associated with Zettle by PayPal.
How much is the PayPal Point of Sale card reader?
PayPal currently lists the first card reader at £29 excluding VAT and additional readers at £69 excluding VAT, with fees subject to change.
How much is the Square Reader?
Square currently lists Square Reader at £19 + VAT, with a lower promotional price also shown on its pricing page.
What is Tap to Pay?
Tap to Pay lets compatible phones accept contactless card or wallet payments without a separate card reader.
Are there card readers with no monthly fee?
Yes. Some card reader providers offer pay-as-you-go pricing with no monthly fee, but you still pay transaction fees.
Do free card readers need a phone?
Many basic readers need a smartphone or tablet. Standalone terminals cost more but do not rely on a paired phone in the same way.
Are free card readers good for sole traders?
Yes, free or cheap card readers can suit sole traders who take occasional or low-volume payments.
Are free card readers good for restaurants?
Usually only for very small or occasional setups. Restaurants often need faster terminals, receipt printing, tips, table features and POS integration.
Should I choose a free card reader or a merchant account?
Choose a free or cheap reader if you want low commitment and low volume. Compare merchant accounts if you process regular or higher-value card payments.
Find the cheapest card reader for your business
A free card reader may look attractive, but the best deal depends on how often you take payments and how much you process each month.
Compare leading UK card machine providers and see which option could work out cheapest for your business.
Related card machine guides Explore more of our UK card machine guides, provider reviews and comparison pages below.
Card machine buying guides
How card machines work
Types of card machines and payment terminals
Card machines by business type
Card machine provider reviews
Card machine comparisons
Compare Card Machine Quotes A free card reader may be enough for occasional payments, but regular sellers should compare card machine providers by transaction fee, monthly cost, hardware, settlement speed and contract terms.
Free quotes • No obligation • Compare UK card reader and card machine providers
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Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
