Quick Answer
For most UK small businesses paying as they go, SumUp offers the lowest in-person rate (1.69%, or 0.99% on its £19/month plan). Square is the best all-rounder for businesses that also sell online. Tide is the cheapest choice for Tide business account holders who want their banking and card reader in one place. Revolut suits businesses that trade in multiple currencies.
Square Reader (2nd Generation)
SumUp Solo Card Reader and Printer
Tide Card Reader
At a Glance: Rates Compared
All rates sourced from official provider pages. Verified March 2026. Rates exclude VAT where applicable.
| Square | SumUp | Revolut | Tide | |
|---|---|---|---|---|
| Best for | All-round (in-person + online) | Lowest PAYG rate | Multi-currency | Tide account holders |
| Monthly fee | £0 (PAYG) | £0 PAYG / £19 Payments Plus | £10 (Basic plan) | £0 (Free account) |
| In-person (UK card) | 1.75% | 1.69% / 0.99%* | 1% + £0.20 | 1.39% + 5p |
| Online (UK card) | 1.4% + 25p | 2.5% | 1% + £0.20 | 0.79%+ 9p** |
| International cards | +1.5% | 1.69% | 2.8% + £0.20 | Higher rate applies |
| Hardware cost | £19 + VAT (Reader) | From £39 (Solo) | Discontinued | £99 + VAT / £119 + VAT (Plus). Prices subject to signing up for the Sell In Person subscription. |
| Requires bank acct? | No | No | Yes (Revolut Business) | Yes (Tide account) |
| Payout speed | Next day | Next day (7am) | Next day | 1–3 working days*** |
| Contract | None | None / monthly | None | None (PAYG) |
| Trustpilot | 4.1 / 5 | 4.2 / 5 | 4.2 / 5 | 4.2 / 5 |
| Learn more | Visit Square | Visit SumUp | Visit Revolut | Visit Tide |
* 0.99% available on Payments Plus plan (£19/month). The standard PAYG rate is 1.69%.
** Payment Links; with Sell More Online subscription from 0.79% + 9p.
*** Next-day settlement available for £2.99 + VAT/month add-on.
How We Chose These Providers
Choosing the cheapest credit card processor is not as simple as comparing a single headline rate. We evaluated each provider across five criteria:
- Total cost of ownership — transaction fees, hardware costs, monthly fees, settlement fees, and any mandatory account charges combined
- Transparency — are all fees clearly published on official pages, with no hidden minimums or undisclosed surcharges?
- Contract flexibility — can you leave without penalty if your needs change?
- Settlement speed — how quickly does money reach your bank account without paying extra?
- Breadth of use case — does the provider support in-person, online, and mobile payments?
We only included providers whose complete fee schedules are publicly available on their official UK websites. All rates were verified directly from official pricing pages in March 2025. If you spot a discrepancy, please email our editorial team — payment rates change frequently and we review this article quarterly.
Understanding Your Real Cost Before You Compare
The transaction rate you see advertised is just one part of what you will actually pay. Before comparing providers, calculate your total monthly cost using this framework:
| Cost Element | What to Look For |
|---|---|
| Transaction rate | Most card readers cost £19–£200 to buy outright. Some providers offer rental instead. Always ask: Does the reader work offline? Does it include a SIM? |
| Monthly / subscription fee | Some providers charge £0/month on a pay-as-you-go basis; others charge £15–£79/month but offer lower transaction rates. Work out which is cheaper at your volume. |
| Hardware cost | International/commercial card surcharges |
| Settlement fee | Most providers offer free next-day or 1–3 day payouts. Instant settlement often costs 1–2% extra. Check whether ‘next day’ is included or an add-on. |
| International / commercial card surcharges | UK consumer debit card rates are always lower than rates for business cards, premium cards (e.g. Amex), or cards issued outside the UK. If your customers often pay with non-standard cards, the advertised rate may significantly understate your real cost. |
| Chargeback & refund fees | Some providers charge £10–£25 per disputed transaction. If you have a high refund or dispute rate, this can add up quickly. SumUp and Revolut do not charge refund fees. |
| 💡 Pro Tip: Do the Maths for Your Volume Take your average monthly card turnover and multiply by the transaction rate to get your monthly fee cost. Then add the monthly subscription (if any) and divide hardware cost over 24 months. Compare that total across providers — not just the headline rate. |
Provider Reviews
Square – Best all-rounder for businesses selling both in person and online
| Fee Type | Rate (verified March 2026) |
|---|---|
| In-person (tap/chip & PIN) | 1.75% |
| Online — UK cards | 1.4% + 25p |
| Online — non-UK cards | 2.5% + 25p |
| Manually keyed / Virtual Terminal | 2.5% |
| International card surcharge (in-person) | +1.5% |
| Monthly fee | £0 (PAYG) — custom plans available for £200k+ annual volume |
| Hardware | Square Reader 2nd Gen: £19 + VAT. Square Terminal from £149 + VAT. |
| PCI DSS compliance fee | Included — no extra charge |
| Settlement | Next working day (free) |
Square‘s 1.75% in-person rate is straightforward and consistent — the same whether a customer pays by Visa debit, Mastercard credit, or contactless. Where Square genuinely differentiates itself is on online payments: its 1.4% + 25p rate for UK cards is more competitive than most rivals for e-commerce, and the integration between its card readers, online store, and invoicing tools is seamless.
The Square Reader (2nd Generation) costs just £19 + VAT and supports tap, chip and PIN, and contactless — including Apple Pay and Google Pay. It connects via Bluetooth to your phone. A free Point of Sale app comes with it. Square’s no-monthly-fee model means there is no minimum monthly charge — ideal for seasonal or lower-volume businesses.
Square is Best For
Businesses that sell both in person and online — cafés with an e-commerce shop, market traders who also take website orders, or any small business wanting a single provider for all payment channels. The free-to-start model is also ideal for new businesses unsure of their volume.
Where Square Falls Short
Square’s online transaction rate includes a fixed 25p charge, which makes it disproportionately expensive for very low-value purchases (under £5). The 2.5% rate on manually keyed or Virtual Terminal transactions is also high. If most of your volume is over the phone or through invoicing rather than in-person or through Square Online, the headline rate does not reflect your real cost.
- No monthly fee — pay only when you take a payment
- Strong online payment rate (1.4% + 25p for UK cards)
- Full suite: reader, online store, invoicing, POS software — all integrated
- Free next-day settlement as standard
- No PCI compliance fees
- In-person rate (1.75%) is higher than SumUp’s Payments Plus plan
- 25p fixed fee on online payments makes small-ticket e-commerce expensive
- Custom lower rates require negotiation and £200k+ annual volume
- Phone/Virtual Terminal rate is 2.5% — expensive for remote-invoice businesses
SumUP – Lowest standard PAYG rate – outstanding value at higher volumes with Payments Plus
| Fee Type | PAYG (No monthly fee) | Payments Plus (£19/month) |
|---|---|---|
| In-person — UK consumer cards | 1.69% | 0.99% |
| Next day (7 am) | 1.69% | 1.69% |
| Online payments | 2.5% | 2.5% |
| Chargeback fee | None stated | None stated |
| Refund fee | None (before payout) | None (before payout) |
| PCI DSS compliance | Included | Included |
| Settlement | Next day (7 am) | Next day (7am) |
| Hardware | SumUp Solo: £39. Air: from £39. | Same hardware |
| Contract | None — cancel anytime | Monthly — cancel anytime |
SumUp‘s PAYG rate of 1.69% is the lowest flat in-person rate among the four providers covered here, and its Payments Plus plan drops that to 0.99% for UK consumer card transactions — making it one of the most competitive rates available anywhere without a long-term contract. The break-even point is around £3,000/month in card turnover: if you take more than that, Payments Plus saves you money versus PAYG.
The SumUp Solo (£39) is a compact touchscreen reader that accepts chip & PIN, contactless, Apple Pay, and Google Pay. A built-in receipt printer variant is also available. Unlike many rivals, SumUp does not rent its hardware — you own the device outright.
SumUp is Best For
Businesses that primarily take in-person payments and want the lowest possible transaction rate without signing a contract. Especially strong for sole traders, market traders, tradespeople, and hospitality businesses processing £3,000+ per month, who can benefit from Payments Plus.
Where SumUp Falls Short
SumUp’s online payment rate of 2.5% is the highest among the four providers in this comparison, and it does not vary based on whether you are on PAYG or Payments Plus. If a meaningful share of your sales come through an online store, SumUp’s total cost will likely be higher than Square’s. SumUp also lacks the broader business banking and multi-currency features that Revolut and Tide provide.
- Lowest PAYG in-person rate of any provider here (1.69%)
- 0.99% on Payments Plus — excellent value at £3k+ monthly volume
- No refund fees before payout; no PCI compliance fees
- Cancel anytime — no long-term contract on either plan
- Next-day 7am payouts on all plans
- Online rate (2.5%) is the highest in this comparison
- Online rate (2.5%) is the highest in this comparison
- No business banking features — payment processing only
- Limited advanced POS software versus Square
Revolut – Best for businesses trading in multiple currencies – lowest flat per-transaction fee
| Fee Type | Rate (verified from Revolut Help Centre, March 2026) |
|---|---|
| UK Visa/Mastercard consumer card | 1% + £0.20 |
| Applies at the arbitration stage — see Revolut’s PPSA for current amount | 2.8% + £0.20 |
| Monthly fee (Basic plan) | £10 |
| Monthly fee (Grow / Scale / Enterprise) | From £30/month — higher tiers unlock higher transfer allowances |
| Hardware — Revolut Reader | Discontinued |
| Refund fee | None |
| Chargeback fee | Next day to the Revolut Business account |
| Settlement | Applies at the arbitration stage — see Revolut’s PPSA for the current amount |
| Multi-currency | Accept payments in 25+ currencies; hold without converting; exchange at mid-market rate |
| Requirement | Revolut Business account required (available from £0/month) |
Revolut‘s 1% + £0.20 rate for UK consumer cards is effectively the lowest percentage rate in this comparison, though the fixed 20p charge means it is less competitive for very small transactions (under approximately £3). For a £100 UK card payment, you pay £1.20 — better than Square’s £1.75 in-person rate and SumUp’s £1.69.
Revolut’s genuine advantage is its multi-currency infrastructure. Businesses can accept payments in 25+ currencies and hold those balances — avoiding unnecessary conversion costs. If you convert back to GBP later, you get the mid-market exchange rate rather than a marked-up retail rate. This is a material cost saving for businesses with significant international sales.
A Revolut Business account is required to use the card reader and payment products. The Basic account is £10, but comes with limited transfer allowances. The Revolut Reader has now been discontinued, with a new product due to be launched soon.
Revolut is Best For
Businesses with international customers or suppliers who want to avoid currency conversion fees. Also well-suited to businesses that want to consolidate payments, banking, and foreign exchange in one platform. Not recommended if you need an offline card reader or want to avoid opening a new business bank account.
Where Revolut Falls Short
The 2.8% + £0.20 rate for international and commercial cards is significantly higher than the headline UK consumer rate, and is the highest international card rate among the providers compared here. Some users have reported variable customer service response times. The card reader is also basic compared with Square’s ecosystem — no offline mode, limited POS features.
- Lowest percentage rate for UK consumer cards (1%)
- Multi-currency: accept 25+ currencies, hold balances, exchange at mid-market rate
- No refund fees
- Full business banking, currency exchange, and expense management in one platform
- Next-day settlement to Revolut account
- Revolut Business account required
- Commercial / international card rate (2.8% + £0.20) is high
- Card reader has been discontinued
- Some users report slower customer service response times
- Fixed 20p charge makes very small transactions comparatively expensive
Tide – Best for Tide business account holders – banking and payments under one roof
| Fee Type | PAYG | Sell In-Person subscription |
|---|---|---|
| In-person — domestic consumer cards | 1.39% + 5p | From 0.79% + 3p |
| Payment Links (online) — domestic consumer cards | Standard rate applies | From 0.79% + 9p (Sell More Online sub) |
| Pay by Bank | Up to 1.5% (max £25) | Up to 1.5% (max £25) |
| Monthly fee | £0 (with free Tide account) | Subscription fee applies — check Tide app for current pricing |
| Hardware — Card Reader (standard) | £99 + VAT (built-in 4G lifetime) | Discounted with subscription |
| Hardware — Card Reader Plus (with printer) | £119 + VAT | Discounted with subscription |
| Next-day settlement | £2.99 + VAT/month add-on | £2.99 + VAT/month add-on |
| Standard settlement | 1–3 working days (free) | 1–3 working days (free) |
| Requirement | Tide business account | Tide business account |
| Processing partner | Adyen | Adyen |
Tide‘s PAYG rate of 1.39% + 5p is — when looking at the percentage component alone — the lowest in this comparison for in-person payments. This is partly because Tide does not accept Amex cards as standard, which reduces its interchange cost base. On the Sell In-Person subscription, the rate drops further to 0.79% + 3p for UK domestic consumer cards.
Tide’s distinctive model is that it is first and foremost a business bank account, and the card reader is an extension of that account. Transactions settle directly into your Tide account, and banking, invoicing, accounting integrations, and payment receipts all live in the same app. If you already bank with Tide or are open to doing so, this bundled approach eliminates the need for a separate payment processor relationship.
The hardware is more expensive than rivals — £99 + VAT for the standard reader versus Square’s £19 —, but Tide’s readers include lifetime free 4G connectivity, which removes ongoing SIM costs. Payments are processed through Adyen, one of Europe’s largest payment platforms, providing enterprise-grade reliability.
Tide is Best For
Businesses already using or planning to use Tide as their primary business bank account, who want to consolidate banking and payment processing. Particularly strong for sole traders, freelancers, and SMEs who value the simplicity of a single financial platform. Not recommended if you need Amex acceptance, instant settlement, or do not want to switch business bank accounts.
Where Tide Falls Short
Tide’s card readers require a Tide business account — they cannot be used as a standalone product. Standard settlement takes 1–3 working days, versus next-day as the default at Square, SumUp, and Revolut; next-day is an optional extra at £2.99 + VAT per month. Refunds currently require contacting customer support rather than being processed directly from the app, which is a friction point for businesses with frequent returns. The fixed 5p charge (on PAYG) makes Tide more expensive for very small transactions — a £1 purchase costs 1.39% + 5p versus SumUp’s 1.69%, making SumUp cheaper below approximately £3.
- Lowest PAYG percentage rate (1.39%) for UK consumer in-person cards
- Lifetime free 4G connectivity included with hardware
- Banking + payments in one platform — ideal for Tide account holders
- Open banking ‘Pay by bank’ option — very low fees for eligible payments
- Powered by Adyen — enterprise-grade payment infrastructure
- Requires a Tide business account — not a standalone reader
- Hardware costs (£99–£119 + VAT) are significantly higher than rivals
- Standard settlement is 1–3 days; next-day is a paid add-on
- Refunds require contacting customer support — not in-app
- No Amex acceptance; limited third-party POS integrations
Real Cost Examples: Three Business Profiles
The table below shows estimated total monthly processing costs for three common UK business profiles. All calculations use PAYG/no-subscription rates. Hardware is amortised over 24 months. Rates as verified March 2026.
| Business Profile | Square | SumUp | Revolut | Tide |
|---|---|---|---|---|
| Market trader £1,500/month, avg £12 transaction, 100% in-person UK cards | £26.25 + £0.79 hardware = £27.04 | £25.35 + £1.63 hardware = £26.98 | £15.00 + £2.04 hardware = £17.04 | £20.85 + £6.63 hardware = £27.48 |
| Hair salon £4,000/month, avg £45 transaction, 80% in-person / 20% online UK cards | £56.00 + £14.00 online + £0.79 = £70.79 | £54.08 (PAYG) or £39.60+£19 sub = £58.60 | £32.00 + £8.00 online + £2.04 = £42.04 | £44.48 + £6.63 = £51.11 |
| E-commerce seller £8,000/month, 100% online UK cards | £112.00 + £200 = £312.00 total/month (incl. 25p × ~117 transactions) | £200.00 (2.5% online rate) | £80.00 + £23.40 fixed fees = £103.40 | Tide Payment Links: varies — check official pricing |
| Learn more | Visit Square | Visit SumUp | Visit Revolut | Visit Tide |
Note: These are indicative estimates based on publicly available rates as of March 2026. Actual costs will vary based on card mix, chargebacks, international card volumes, and other factors. Always request a tailored quote.
Card Processing Pricing Models Explained
Understanding which pricing model a provider uses helps you evaluate whether the published rate is genuinely what you will pay.
Flat Rate (Blended)
You pay one fixed percentage (and sometimes a fixed pence amount) on every transaction, regardless of card type. Square, SumUp, and Tide all use this model. It is simple and predictable — ideal for businesses that want to know exactly what they will pay each month. The trade-off is that you may overpay relative to interchange-plus if your card mix is predominantly low-cost debit cards.
Interchange-Plus (IC+)
You pay the raw interchange fee (set by Visa/Mastercard, capped in the UK at 0.2% for debit and 0.3% for credit) plus a transparent markup by the processor. This is more transparent and often cheaper for high-volume businesses. Square offers IC+ pricing for businesses processing over £200k/year. Traditional merchant account providers like Elavon and Worldpay typically offer IC+ as their standard model.
Subscription
You pay a monthly fee in exchange for lower per-transaction rates. SumUp’s Payments Plus (£19/month, 0.99% in-person) is a subscription model. This is cost-effective once your volume is high enough — SumUp’s break-even is approximately £3,000/month in UK consumer card sales.
Custom / Quote-Based
Larger processors (Worldpay, Elavon, Stripe for enterprise) negotiate individual rates based on your monthly volume, average transaction value, industry, and chargeback history. If you are processing £500k+ per year, it is worth requesting custom quotes — the savings over flat-rate pricing can be significant.
7 Ways to Reduce Your Card Processing Costs
- Switch to a subscription plan once your volume justifies it. SumUp’s Payments Plus pays for itself at £3,000+/month in UK consumer card sales. Calculate your break-even before dismissing monthly fees.
- Encourage debit card payments. UK consumer debit cards attract lower interchange fees than credit or business cards. Some providers pass this saving on directly.
- Use open banking for large invoices. Tide’s ‘Pay by bank’ charges up to 1.5% (max £25) — for a £2,000 invoice, that is a maximum £25 fee versus £35+ on a standard card rate. For high-value B2B invoicing, this can generate real savings.
- Minimise chargebacks. Clear billing descriptors, prompt refunds, and good customer communication all reduce dispute rates. Each chargeback typically costs £10–£25 in fees on top of the lost transaction.
- Maintain PCI DSS compliance. Square, SumUp, and Tide all include PCI compliance in their fees. Traditional merchant accounts may charge £2.50–£5/month — check your contract carefully.
- Negotiate if your volume warrants it. Once you are processing £10k+/month, it is always worth asking for a custom rate — especially with providers like Revolut and Square that offer bespoke plans for larger businesses.
- Review your provider annually. Rates change. Providers regularly update their pricing. Set a calendar reminder to compare rates once a year — the market moves quickly, and switching costs are low with no-contract providers.
FAQs
Are card processing fees legal in the UK?
Yes — the fees are paid by the merchant to their payment processor, not by the customer. Charging customers a surcharge for paying by card has been banned in the UK since January 2018 under the Payment Services Regulations. You cannot pass card processing fees on to your customers as a surcharge, though you can factor them into your prices.
What is the cheapest card processing fee in the UK right now?
On a pure PAYG percentage basis, Revolut’s 1% + £0.20 for UK Visa/Mastercard consumer cards is the lowest percentage rate in this comparison. For in-person flat-rate processing without a fixed pence component, SumUp’s 1.69% (PAYG) or 0.99% (Payments Plus) offers strong value. The right answer depends on your transaction size, volume, and whether you want banking bundled in.
Do I need a merchant account to accept card payments?
Not always. Square, SumUp, and similar payment service providers (PSPs) give you access to a shared merchant account — you do not need to apply for a dedicated one. Traditional merchant accounts (offered by Worldpay, Elavon, etc.) are separate products that typically offer lower rates at higher volumes but involve application checks, monthly fees, and longer contracts.
What is the difference between interchange-plus and flat-rate pricing?
Flat-rate pricing charges you a single blended percentage per transaction, regardless of card type — simpler, but potentially more expensive. Interchange-plus pricing separates the raw interchange cost (set by Visa/Mastercard) from the processor’s markup, giving you full transparency. IC+ is typically cheaper for high-volume businesses but requires more accounting work. Square, SumUp, and Tide all use flat-rate (blended) pricing as standard.
Can I accept American Express with these providers?
Square, SumUp, and Revolut all accept American Express. Tide does not accept Amex as standard (their Tap to Pay on iPhone option does). Amex transactions typically incur higher fees (1.69% at SumUp for international/corporate/Amex cards, for example). If a significant portion of your customers pay with Amex, confirm the Amex-specific rate before signing up.
How quickly will I receive my money?
Square, SumUp, and Revolut all offer free next-day payouts as standard. Tide’s standard settlement takes 1–3 working days; next-day is available as an add-on at £2.99 + VAT per month. All providers quoted here are faster than traditional merchant accounts, which typically settle in 2–5 working days.
Is blended pricing or interchange-plus better for my business?
For most small businesses processing under £10,000/month, blended (flat-rate) pricing is usually simpler and often comparably priced. For businesses processing over £50,000/month, interchange-plus typically saves money — especially if your card mix is predominantly low-cost debit cards. At that volume, it is worth requesting a custom IC+ quote from providers like Square, Revolut, or a traditional acquirer.
What happens if a customer disputes a payment (chargeback)?
If a customer disputes a transaction with their bank, the payment processor reverses the charge while investigating. If the dispute is upheld in the customer’s favour, the funds are returned to them, and you lose the revenue. Most providers charge a chargeback fee of £10–£25 per dispute. SumUp does not publicly list a chargeback fee; Tide’s chargeback policy is set by its processing partner Adyen. Reducing chargebacks through clear receipts, accurate billing descriptions, and prompt refund handling is the most cost-effective approach.
Editorial Policy & Transparency
All transaction rates in this article were verified directly from official provider pricing pages in March 2025. We review this article quarterly and update rates whenever providers change their published fees. If you spot an error or outdated rate, please contact our editorial team. We may receive a referral commission if you sign up with a provider via links on this page; this does not influence our editorial scoring or recommendations. Provider rankings are determined solely by the evaluation criteria described in our ‘How We Chose’ section.
