What is the cheapest transaction rate for card payments in the UK?

The lowest published in-person rate available to you is Tide Card Reader on the Sell In-Person plan at 0.79% + 3p. SumUp Payments Plus at 0.99% is second. Both require a monthly subscription; if you prefer PAYG, your cheapest options start at 1.69% (SumUp) or 1.5% + 10p (Tide).

Are there card readers with no monthly fee?

Yes. SumUp, Square, Zettle, and myPOS all offer PAYG card readers with no monthly fee. Your rates are higher on PAYG than on a plan, but there is no commitment and no minimum, which is useful if you take card payments only occasionally.

Does the cheapest rate mean the lowest total cost?

Not always. A 0.79% rate with a £12.99 plan costs you more per month than 1.69% PAYG below £1,850/month. Always model your actual card volume against the plan fee before you commit.

Cheapest Card Processing UK 2026: Lowest Rates Compared

Provider	PAYG rate	Plan rate	Plan cost	Hardware	Contract	Action
Lowest rate at volumeTide Card Reader	1.5% + 10p	0.79% + 3p	£12.99/month	£19.99 +VAT	No lock-in	Visit →
SumUp Air	1.69%	0.99%	£19/month	£14.99 +VAT	No contract	Visit →
Square Reader	1.75%	1.75% (Plus plan adds features, not lower rate)	£29/month (Plus)	£19 +VAT	No lock-in	Visit →
Zettle by PayPal	1.75%	N/A	£0	£29 excl VAT	No contract	Visit →
Stripe	1.5% + 20p (online, UK)	N/A (no in-person plan rate)	None	From £59 (Terminal)	No contract	Visit →

Cheapest card processing picks by volume

Cheapest at low volume (under £2,000/month): SumUp Air

At £1,000/month, SumUp PAYG costs £16.90. Square costs £17.50. The difference is small, but SumUp is consistently cheaper at PAYG. SumUp’s £14.99 reader also costs £4 less than Square’s £19. For a low-volume sole trader who wants the absolute cheapest start, SumUp wins at both entry points.

Visit SumUp

Cheapest at medium to high volume (above £2,000/month): Tide Card Reader

Tide’s Sell In-Person plan at £12.99/month gives 0.79% + 3p per transaction. Above this band it beats SumUp and Square on pay-as-you-go, and the saving grows with volume. The full break-even maths is below.

Visit Tide

Cheapest card processing providers

Tide Card Reader

Low-fee option

Best for: Tide business account holders taking regular in-person payments, plan rate (0.89% + 3p) makes sense above roughly £2,500/month in card sales

Watch out: No Amex acceptance and 3-day standard settlement are hard stops for many businesses

Not ideal if: Businesses whose customers regularly pay by Amex, or any business not banking with Tide

Sell In-Person plan at 0.89% + 3p is among the lowest rates in this guide, and the lowest bundled with a full business account

Lifetime 4G SIM removes the phone-tether failure mode entirely

Settles directly into the Tide account, one balance, one reconciliation

£59 introductory hardware price undercuts most rental alternatives

No Amex acceptance, a hard stop for hospitality, salons, and premium retail

Requires a Tide business account, means a bank switch for most applicants

Standard settlement is three working days unless you pay for the next-day add-on

SumUp Air

Best for Startups

Best for: Sole traders and startups wanting the lowest hardware entry cost

Watch out: Battery degrades in cold weather and Bluetooth fails if phone dies mid-shift

Not ideal if: Businesses expecting to scale past £5,000/month quickly, a plan switch will be needed

£15 hardware price is the lowest entry point on the market

Next-day 7am settlement is faster than Square’s standard 1–2 working days

Payments Plus at 0.99% is a credible upgrade path above £4,000/month

Amex accepted at the flat rate, no separate premium-card policy needed

Hardware battery degrades in cold weather, unreliable on winter outdoor markets

Bluetooth-to-phone fails if the phone dies on a busy shift

Payments Plus break-even is £3,800/month, most small users should not subscribe

SumUp Air reader at £19, one of the cheapest card readers available in the UK; pairs with the free SumUp app on iOS and Android

Free SumUp POS app, sales reports, item library, basic inventory and team management included with no subscription

Next-day settlement at 7am on every plan, or instant payout to a SumUp business account at no extra cost

Payments Plus subscription at £19/month drops the per-transaction rate to 0.99%, best for businesses processing above £3,300/month

Accepts all major debit and credit cards including Amex, plus Apple Pay and Google Pay, at the same flat rate

Square Reader

Top Pick

Best for: Small businesses wanting a free POS app and no monthly fees

Watch out: 1.75% flat becomes expensive above ~£6,000/month: no volume discount exists

Not ideal if: High-volume sellers who would benefit from Dojo or other negotiated per-transaction rates

Eligibility: UK businesses: sole traders, partnerships, and limited companies. Account holders must be 18 or over. Custom rates available for businesses processing over £200,000 annually. Prohibited categories include firearms and other restricted activities: see Square’s Acceptable Use Policy.

Not ideal if: High-volume sellers who would benefit from Dojo or other negotiated per-transaction rates

Watch out: 1.75% flat becomes expensive above ~£6,000/month: no volume discount exists

No monthly fee and no contract: zero downside risk while testing card acceptance

Free POS app usable from day one: most owners taking payments within an hour

Amex accepted at the same 1.75% rate: no surcharge or separate policy needed

Software ecosystem (online store, invoices, appointments) on the same account, no extra fees

1.75% flat becomes expensive above roughly £6,000/month in card takings

Settlement is 1–2 working days unless you pay extra for instant transfer

Bluetooth-to-phone means a flat battery or dropped app stops checkout

Zettle by PayPal

No monthly fee

Best for: Market stalls, mobile traders, pop-ups, and small retail or food businesses wanting zero monthly fees and no contracts. The Zettle Terminal is the strongest mobile hardware pick in the UK due to built-in 4G at no ongoing cost.

Watch out: Money lands in PayPal first: one extra transfer step before cash reaches your bank account

Not ideal if: Businesses wanting settlement direct to a bank account: PayPal transfer step adds a day to cash position

Minutes-to-account settlement into PayPal: the fastest non-myPOS option here

1.75% flat including Amex: matches Square on the in-person rate

Useful for businesses with an existing PayPal invoicing or e-commerce flow

Money sits in PayPal, not a business bank account: one more transfer step before cash is usable

POS app is thinner than Square’s: fine for simple retail, weaker for hospitality

No volume discount structure exists

Zettle Go free POS app: item library, inventory tracking, sales reports and team management included at no extra cost

Instant PayPal settlement: funds available in your PayPal balance immediately after each transaction, no working-day delay

Hardware range from the £29 Zettle Reader 2 to the Zettle Terminal with built-in receipt printer: flexible setup for any counter

PayPal-integrated checkout: customers can pay via PayPal QR at the till, and PayPal online transactions feed into the same merchant account

Built-in product variants, discounts and gift cards: works for retail, hospitality and service businesses out of the box without add-on subscriptions

Stripe Terminal

Best for: Tech-forward businesses that already use Stripe online and want a unified payment stack

Eligibility:

UK-registered businesses: sole trader, Ltd, LLP, charity, or partnership
UK bank account in the business name required for payouts
No minimum trading history or revenue threshold for standard accounts
High-volume merchants moved to Stripe Custom with bespoke underwriting
Restricted categories: adult content, regulated gambling, firearms, MLM, unregulated CBD, and any business on the FCA restricted activities list
Stripe Capital and Stripe Issuing are invitation-only based on processing history (typically 3+ months at £10k+/month)
KYC/KYB via Companies House cross-check; 1-3 business days from sign-up to first live transaction in most cases

1.4% + 10p for EEA card-present transactions, competitive without a monthly commitment

Unified dashboard: online and in-person payments in one place with consolidated reporting

Stripe Radar fraud detection included, no extra fee

No monthly fee and no contract, suits variable or seasonal transaction volumes

Tap to Pay on iPhone and Android eliminates the need for dedicated hardware

Custom Terminal integration requires SDK development, not a no-code out-of-box setup

2.9% + 10p for non-EEA cards, expensive for businesses with international customers

Standard settlement takes 3 business days; instant payout costs 1% (minimum 40p)

New accounts face a 7-day holding period before first payout

Account holds can freeze both online and in-person payment channels simultaneously

Break-even analysis: when plans pay back

These calculations use verified PAYG and plan rates, May 2026:

SumUp Payments Plus (£19/month, 0.99%): break-even vs PAYG 1.69% at £2,714/month in card sales.
Tide Sell In-Person (£12.99/month, 0.79% + 3p): break-even vs PAYG 1.5% + 10p at approximately £1,850/month.
Square Plus (£29/month, 1.75%): does not reduce transaction rate. No break-even on rate, plan adds features only.

Above £5,000/month: Tide Sell In-Person is cheapest at ~£52.50 total. SumUp Payments Plus costs ~£68.50. Square PAYG costs £87.50. The gap grows with volume.

Beyond the rate: what else matters

Hidden fees

Some providers add fees that are not in the headline rate. Check for: authorisation fees (Dojo charges £0.05/transaction), refund fees (Dojo charges £0.50/refund), monthly minimum processing fees, PCI compliance fees.

SumUp, Square, Tide, and Zettle do not charge these on their published PAYG or plan prices.

Settlement speed

SumUp settles next day at 7am. Square settles in 1–2 working days. Tide settles next working day. Zettle settles to PayPal in minutes. Fast settlement reduces working capital needs for businesses with tight cashflow.

Frequently asked questions

What is the cheapest transaction rate for card payments in the UK?
The lowest published in-person rate available to you is Tide Card Reader on the Sell In-Person plan at 0.79% + 3p. SumUp Payments Plus at 0.99% is second. Both require a monthly subscription; if you prefer PAYG, your cheapest options start at 1.69% (SumUp) or 1.5% + 10p (Tide).
Are there card readers with no monthly fee?
Yes. SumUp, Square, Zettle, and myPOS all offer PAYG card readers with no monthly fee. Your rates are higher on PAYG than on a plan, but there is no commitment and no minimum, which is useful if you take card payments only occasionally.
Does the cheapest rate mean the lowest total cost?
Not always. A 0.79% rate with a £12.99 plan costs you more per month than 1.69% PAYG below £1,850/month. Always model your actual card volume against the plan fee before you commit.

How we reviewed Cheapest Card Processing UK 2026

Ranking criteria. We ranked providers on cost, eligibility, features, and ease of access. Cost and protection carry the heaviest weight because these matter across every business type and rarely change with reader preferences.

Data sources. Every provider’s pricing page, terms, and product docs were checked directly in May 2026. No comparison sites, no press releases, no affiliate material. FCA register cross-checked for regulatory status.

Update cadence. We re-verify every provider on this page at least monthly, and whenever a provider changes pricing, eligibility, or terms. The verification date on the page reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.