Payment Terminals Explained UK 2026: Types, Costs, Benefits & How to Choose Quick answer
A payment terminal is a device that lets a business accept in-person payments by debit card, credit card, contactless card, Apple Pay, Google Pay or another digital wallet.
Payment terminals are also known as card machines, card readers, PDQ machines, Chip and PIN machines or EFTPOS terminals. Modern terminals can support contactless payments, Chip and PIN, mobile wallets, receipts, tipping, refunds, reporting, EPOS integration and sometimes online payment tools.
For very small businesses, a simple card reader from SumUp, Square or PayPal POS may be enough. For shops, cafés, restaurants, salons, pubs, tradespeople and growing SMEs, a dedicated countertop, portable or mobile payment terminal from providers such as Dojo, Tyl by NatWest, Worldpay, Barclaycard, Elavon, TakePayments or Clover may be better.
Payment terminal costs vary. Basic readers often have low upfront costs and transaction fees around 1.69% to 1.75%, while dedicated terminals may involve monthly rental, contract terms and lower custom rates.
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Contents
What Is a Payment Terminal?
Types of Payment Terminals
Benefits of Payment Terminals
Choosing the Right Terminal
Pro Tip: Choosing a Provider
Are Payment Terminals Worth It?
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: July 2026
Key Takeaways
Payment terminals let businesses accept in-person debit card, credit card, contactless and mobile wallet payments.
They are also called card machines, card readers, PDQ machines, Chip and PIN machines or EFTPOS terminals.
The main types are countertop, portable, mobile, smart POS, EPOS-integrated and app-based card readers.
Tap to Pay lets some businesses accept contactless payments on a compatible smartphone without a separate terminal.
Square charges 1.75% for UK in-person card-present payments.
SumUp lists a standard 1.69% transaction fee for card reader payments.
PayPal POS charges 1.75% for card and contactless payments.
Tyl by NatWest lists terminal hire from £13.99 + VAT/month for the PAX A80.
The cheapest payment terminal depends on monthly card turnover, transaction value, terminal type and contract terms.
Businesses should compare transaction fees, monthly rental, PCI fees, settlement speed, support and integrations before choosing.
Growing businesses may save money by comparing merchant account-style providers instead of staying on flat-rate card readers.
Compare payment terminal providers before choosing your card machine.
Payment terminals at a glance
Terminal type Best for Typical setu p
Card reader
Sole traders, market stalls, pop-ups and mobile sellers
Small reader paired with an app
Countertop terminal
Shops, cafés, takeaways and fixed tills
Fixed card machine at checkout
Portable terminal
Restaurants, pubs, salons and table service
Card machine carried around premises
Mobile terminal
Tradespeople, delivery businesses and events
Terminal with Wi-Fi, Bluetooth or 4G
Smart POS terminal
Retail and hospitality businesses
Touchscreen terminal with apps and reporting
EPOS-integrated terminal
Shops, restaurants and multi-staff businesses
Payments linked to till, stock or orders
Tap to Pay
Very small sellers and mobile businesses
Smartphone accepts contactless payments
Virtual terminal
Phone payments and remote sales
Browser-based manual card entry
What Is a Payment Terminal? A payment terminal is a device that allows a business to accept card and contactless payments from customers.
Payment terminals can usually accept:
debit cards
credit cards
contactless cards
Chip and PIN
Apple Pay
Google Pay
Samsung Pay
smartwatches
wearable payments
sometimes QR payments or payment links, depending on provider
Payment terminals are used by:
shops
cafés
restaurants
pubs
salons
tradespeople
market traders
hotels
taxis
clinics
events businesses
mobile services
takeaways
charities
A basic payment terminal takes the payment, and a smart or EPOS-integrated terminal may also manage products, staff, stock, tips, receipts, reporting and customer data.
Payment terminal vs card reader vs PDQ machine The terms are often used interchangeably, but there are small differences.
Term
Payment terminal
General term for any device that accepts card payments
Card machine
Common UK term for a payment terminal
Card reader
Often a smaller device that pairs with a phone or tablet
PDQ machine
Older UK term for a card machine, meaning “Process Data Quickly”
Chip and PIN machine
Terminal that accepts cards inserted with PIN entry
Contactless terminal
Terminal that accepts tap payments
POS terminal
Can mean payment terminal or full point-of-sale till system
EPOS terminal
Electronic point-of-sale system linked to payments, stock and reporting
EFTPOS terminal
Electronic funds transfer at point of sale, more common in some markets
Types of Payment Terminals Countertop payment terminals Countertop terminals stay in one fixed place, usually at a till or reception desk.
Best for:
shops
cafés
takeaways
clinics
hotel receptions
salons with fixed tills
small retailers
They usually connect by Ethernet, Wi-Fi or broadband.
Portable payment terminals Portable terminals can be carried around a premises.
Best for:
restaurants
pubs
bars
cafés
salons
clinics
table service
hospitality venues
They usually connect through Wi-Fi or Bluetooth.
Mobile payment terminals Mobile terminals work away from premises.
Best for:
tradespeople
delivery businesses
mobile hairdressers
food trucks
event sellers
field teams
taxis
market traders
They may use Wi-Fi, Bluetooth, SIM or 4G connectivity.
Card readers Card readers are usually smaller and cheaper than full payment terminals.
They often pair with a smartphone or tablet.
Best for:
sole traders
market stalls
pop-ups
low-volume sellers
mobile services
seasonal businesses
Examples include simple reader options from SumUp, Square and PayPal POS.
Smart POS terminals Smart POS terminals combine payment acceptance with business tools.
They can often include:
touchscreen interface
apps
receipts
sales reports
product library
staff accounts
tipping
refunds
connectivity
customer display
barcode scanning, depending on device
Best for retail and hospitality businesses that need more than payment processing.
EPOS-integrated terminals EPOS-integrated terminals connect payments to the business’s till or POS system.
Best for:
restaurants
cafés
pubs
retail shops
salons
multi-staff businesses
businesses needing stock or order management
Tap to Pay on smartphone Tap to Pay lets businesses accept contactless payments using a compatible smartphone.
Best for:
very small sellers
tradespeople
market stalls
mobile services
occasional payments
businesses testing card acceptance
It probably won’t not be enough for businesses needing Chip and PIN, printed receipts or multiple terminals.
How payment terminals work A payment terminal processes a card or wallet payment through several steps.
The customer taps, inserts or presents their payment method.
The terminal reads the card or digital wallet data.
The payment is encrypted and sent to the payment processor.
The card network and issuing bank check the transaction.
The payment is approved or declined.
The terminal confirms the result.
The customer receives a paper or digital receipt.
Funds are settled to the business based on the provider’s payout schedule.
Most in-person payments are completed within seconds.
Payment terminal costs UK 2026 Payment terminal costs depend on provider, hardware, contract and payment volume.
Cost type Typical pattern
Basic card reader
Usually one-off hardware cost
Countertop terminal
Often monthly rental or hire
Portable terminal
Often monthly rental or package pricing
Mobile terminal
Hardware, rental or package pricing
Smart POS terminal
Hardware plus software or subscription fees
Transaction fees
Usually percentage of each transaction
Monthly software fee
May apply for POS systems
PCI fees
May apply with some providers
Chargeback fees
May apply if a customer disputes a payment
Settlement fees
May apply for faster payouts
Cancellation fees
Benefits of Payment Terminals
Chip and pin technology significantly reduces fraud compared to traditional swipe methods. Faster transaction processing and convenient payment options means happier customers.Accepting various payment methods caters to a wider customer base. Efficient payment processing reduces errors and saves time. You can generate valuable insights into customer spending habits and sales trends.
Choosing the Right Terminal
where do you take payments?
Payment location Best termina l
Fixed till
Tables or treatment rooms
Customer homes or job sites
Mobile terminal
Markets or pop-ups
Card reader or Tap to Pay
Retail shop with stock
Online and in person
Provider with gateway and card machines
2. How much do you take by card?
Monthly card turnover
Under £1,000
SumUp, Square, PayPal POS or Tap to Pay
£1,000-£5,000
Flat-rate readers vs low monthly terminal quotes
£5,000-£10,000
Dojo, Tyl, TakePayments and merchant account quotes
£10,000-£25,000
Worldpay, Barclaycard, Elavon, Dojo, Tyl
£25,000+
Seasonal turnover
Avoid long contracts unless savings justify it
3. What features do you need?
Check whether you need:
tipping
split bills
refunds
receipt printing
staff accounts
product library
stock tracking
barcode scanning
customer display
4G connectivity
offline mode
payment links
invoices
online payments
accounting integrations
EPOS integration
customer loyalty tools
4. What is your budget?
think about your:
hardware cost
terminal rental
transaction fees
monthly software fees
setup fees
PCI fees
settlement fees
cancellation fees
chargeback fees
The lowest upfront cost is not always the cheapest total deal.
5. Do you need integrations ?
You might need a terminal that connects with:
Xero
QuickBooks
Shopify
WooCommerce
Lightspeed
Square POS
Clover
EPOS Now
TouchBistro
restaurant POS systems
booking systems
accounting tools
stock systems
6. How important is support?
Good support matters if you take payments every day, so check:
support hours
phone support
live chat
replacement terminal process
onboarding
setup help
dispute support
chargeback support
contract support
Payment terminals by business type
Business type
Sole trader
Card reader or Tap to Pay
Market trader
Tradesperson
Mobile terminal or Tap to Pay
Small shop
Countertop terminal or smart POS
Café
Countertop terminal or portable terminal
Restaurant
Portable terminal with tipping and split bills
Pub or bar
Portable and countertop terminals
Salon
Portable terminal or EPOS-integrated reader
Takeaway
Countertop terminal with fast checkout
Hotel
Reception terminal, portable terminals and online payment tools
Event business
Mobile terminal or card reader with strong battery
Multi-site retailer
EPOS-integrated terminals and custom pricing
Ecommerce business
Online payment gateway plus optional card reader
Pro Tip: Choosing a Provider We don’t want you to just look at the hardware-consider the provider’s reputation, customer service, and reliability.
Provider Best for Why compare it
SumUp Sole traders and low-volume sellers
Low-cost readers and simple fees
Square Small businesses wanting POS tools
Strong POS app and simple pricing
PayPal POSPayPal users and small sellers
PayPal ecosystem and card/contactless payments
Dojo Growing SMEs, hospitality and retail
Modern terminals and competitive pricing
Tyl
by NatWest
SMEs wanting bank-backed payments
Published pricing and terminal options
Worldpay Established businesses
Card machines, merchant services and online payments
Barclaycard
Bank-backed payment services
Portable and countertop terminal options
Elavon Retail and hospitality SMEs
In-store, mobile and online payment services
TakePayments SMEs wanting guided setup
Tailored card machine quotes and support
Clover Retail and hospitality POS
Smart terminals, POS tools and apps
Lloyds CardnetEstablished SMEs and Lloyds customers
Merchant services and card payment solutions
Stripe Terminal
Online-first businesses needing in-person add-on
Developer-friendly in-person payments
What to check before choosing a provider Before signing up, ask:
what is the transaction fee?
is there a monthly rental fee?
is there a minimum monthly charge?
how long is the contract?
are there cancellation fees?
is the terminal bought or rented?
what happens if the terminal breaks?
is replacement hardware included?
are PCI fees charged?
are authorisation fees charged?
are chargeback fees charged?
how fast is settlement?
are refunds charged?
are international cards more expensive?
are business cards more expensive?
does it accept Apple Pay and Google Pay?
does it support contactless?
does it support Chip and PIN?
does it integrate with your POS?
does it integrate with your accounting software?
what support is available?
are all fees shown in writing?
Always compare the full monthly cost, not just the terminal price.
Are payment terminals worth it? Yes, payment terminals are worth it for most UK businesses that take in-person payments, because a payment terminal can help you:
accept more customers
reduce cash handling
speed up checkout
support contactless payments
accept mobile wallets
improve reporting
reduce manual errors
offer a more professional payment experience
You may not need a payment terminal if:
your business is online-only
you only accept bank transfers
you take very occasional payments and Tap to Pay is enough
you are not ready to accept card payments
your current payment method already meets customer expectations
For most shops, cafés, restaurants, salons, tradespeople, mobile businesses and hospitality venues, a payment terminal is now a standard business tool.
Compare payment terminal quotes now and see whether your business could save up to 40%.
Payment Terminal FAQs What is a payment terminal?
A payment terminal is a device that allows businesses to accept in-person card, contactless and mobile wallet payments.
Is a payment terminal the same as a card machine?
Yes, in most UK business contexts, payment terminal and card machine mean the same thing.
What is the difference between a payment terminal and a card reader?
A card reader is usually a smaller, simpler payment device, often paired with a smartphone or tablet. A payment terminal can also refer to more advanced countertop, portable, mobile or smart POS devices.
What is the difference between a payment terminal and a POS terminal?
A payment terminal processes payments. A POS terminal may include wider point-of-sale features such as stock, staff, orders, tables and reporting.
What is a PDQ machine?
A PDQ machine is another term for a card machine or payment terminal. PDQ stands for “Process Data Quickly”.
How much does a payment terminal cost in the UK?
Costs vary. Some card readers have low upfront hardware costs and no monthly fee. Dedicated terminals may involve monthly rental, transaction fees and contract terms.
What are typical payment terminal transaction fees?
Common flat-rate providers charge around 1.69% to 1.75% for in-person payments. Merchant account providers may offer lower custom rates depending on turnover and contract.
Do payment terminals need internet?
Most payment terminals need Wi-Fi, Ethernet, broadband, Bluetooth, mobile data or 4G to process payments.
Can I use my phone as a payment terminal?
Yes. Tap to Pay allows compatible smartphones to accept contactless payments without a separate card reader.
Are payment terminals secure?
Yes, reputable payment terminals use secure payment technology such as EMV, encryption and PCI DSS compliance.
Which payment terminal is best for small businesses?
SumUp, Square and PayPal POS can suit small businesses wanting simple setup. Dojo, Tyl, Worldpay, TakePayments, Barclaycard and Elavon may suit businesses with regular card turnover.
Which payment terminal is best for restaurants?
Restaurants should compare portable terminals and EPOS-integrated systems from providers such as Dojo, Clover, Worldpay, TakePayments, Tyl and Elavon.
Which payment terminal is best for tradespeople?
Tradespeople should compare mobile terminals, card readers and Tap to Pay options from providers such as SumUp, Square, PayPal POS, Dojo and Tyl.
Can payment terminals accept Apple Pay and Google Pay?
Yes, most modern payment terminals accept Apple Pay, Google Pay and contactless mobile wallet payments.
Do payment terminals support receipts?
Many payment terminals support digital receipts, printed receipts or both. Basic card readers may require a separate printer for paper receipts.
Can payment terminals work offline?
Some providers offer limited offline functionality, but most terminals need connectivity. Always check offline payment rules before relying on this feature.
Is it better to rent or buy a payment terminal?
Buying may suit low-volume businesses that want simple setup. Renting or using a monthly contract may suit businesses that need professional terminals, support or lower transaction rates.
How do I choose a payment terminal provider?
Compare transaction fees, monthly rental, contract length, terminal type, support, settlement speed, security, integrations and hidden fees.
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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.
