How to choose a card machine for a small shop

Most sales in a small shop happen with a tap, so your card machine affects your costs and cashflow. This article covers the types of card machine, what the fees are made of, how long payments take to arrive and what to check before signing. It is an overview of what to weigh up, not a rundown of every option.

Zempler Bank is a UK bank, that provides business current accounts to retail businesses including shops, market stalls and online sellers.

For advice on your specific situation, speak to a qualified accountant, solicitor or licensed adviser.

Key takeaways

• Five setups cover most small shops. They range from a fixed countertop terminal to using your own phone as the reader.
• The cost of taking cards is a set of charges, not one rate. Compare the total over a year against your own sales, and remember that in most cases you cannot pass that cost to customers as a card fee.
• Card money reaches your business bank account after your payments provider settles it. That takes working days, not minutes, and the speed varies by provider.
• There is no longer a single contactless limit set by the regulator. Since March 2026, card issuers have set their own limits, so what a customer can tap for is set by their own bank
• Every shop is different. Treat this as a starting point and check the detail against your own trading pattern and contracts.

What is a card machine and how does it work?

A card machine, also called a card reader, takes payment from a customer's card or phone at the till. It sends the payment to your payments provider. The provider checks it with the customer's bank, then settles the money into your business bank account a few days later.

Two businesses sit behind every card sale. Your payments provider, sometimes called an acquirer or a merchant services provider, handles the transaction. Your bank holds the money once it lands.

They are separate services, and a shop needs both.

Contactless is now the default way to pay in a shop. UK Finance data for May 2026 shows contactless made up 76% of debit card transactions and 67% of credit card transactions.

Limits on contactless payments changed on 19 March 2026. The Financial Conduct Authority (FCA) removed the single limit that applied across the industry, so card issuers now set their own. The FCA expected firms to take a cautious approach at first, and limits now vary by issuer. What a customer can tap for is set by their own bank, and they may still be asked for a PIN on larger payments. Our article on contactless limits and settlement times covers what this means at the till.

What types of card machine can a small shop use?

The table below sets out the five setups most independent shops choose between, and the kind of trading each one suits.

A card machine is not the same as an EPOS (Electronic Point of Sale) system. A card machine takes the payment. An EPOS system runs the till, tracks stock and reports on sales. It usually connects to a card machine rather than replacing one. 

What makes the best card machine for a small business?

There is no single answer, because a market stall and a busy convenience store need different things. These are the main points worth comparing.

• Total cost across a year, measured against your own average sale value and monthly takings
• How long the money takes to reach your bank account
• Contract length, notice period and what happens when the term ends
• Whether you buy the hardware or rent it
• How it connects, and what happens when the connection drops
• How simple refunds and part refunds are to process
• Whether sales data exports into your bookkeeping software
• What support you get, and the hours it runs

Write your own answers to these before you speak to a provider. It is easier to compare quotes when you already know what you need.

What does it cost to take card payments?

A quote is rarely one number. Most are built from several charges, so ask for the full set before you compare.

Card data security is a subject in itself, and what applies depends on how you take payments. Ask your provider what it covers and what it expects from you.

Rates advertised as "from" a certain percentage usually apply to the lowest cost card type. Ask for a full rate card. Then ask the provider to price your own numbers, using your average sale value, your monthly card takings and your mix of debit and credit.

In most cases you cannot pass the cost to your customers as a card fee. The Consumer Rights (Payment Surcharges) Regulations 2012 were amended in 2018 to stop traders charging consumers extra for paying by a consumer debit or credit card. The position differs for commercial cards and for some types of contract, so check the regulations or take advice if you think your situation is unusual. Most shops build the cost into their prices instead. A minimum spend is a different thing and is not caught by those rules, though your provider contract or the card scheme rules may still restrict it.

How long does it take for card payments to reach your account?

Settlement is the step where your payments provider passes the money to your bank. It does not happen at the till. Timings vary by provider, weekends and bank holidays add time, and the first payout after you sign up often takes longer while checks are completed.

Ask two questions before you sign. How many working days does settlement take, and does the clock start on the day of the sale or the day after? A shop paying suppliers weekly will feel the difference.

Do you need a merchant account or a business bank account?

Most shops need both, and they do different jobs. A merchant account is where your payments provider holds card takings before passing them on. Your business bank account is where that money lands, and where you run the rest of the shop from.

You do not always apply for a merchant account separately. Some providers include one in what they sell you, so check what a quote covers.

Many payments providers are regulated as payment or e-money firms rather than banks. Card takings held with them before settlement are not covered by FSCS (Financial Services Compensation Scheme) deposit protection. Those firms have to keep customer money separate from their own under FCA safeguarding rules instead. Deposit protection applies once the money reaches an account with an authorised UK bank. You can check how a provider is regulated on the FCA register.

If your shop is a limited company, its money is legally separate from yours, so in practice you will need an account in the company name. Sole traders are not required by law to hold a business account. Many personal account terms do not allow business use, so check the terms of the account you hold. A separate account also makes bookkeeping and tax returns simpler. Our guide to sole trader and limited company structures explains the difference.

Most payments providers ask for your business bank account details when you sign up, so it helps to have the account open first.

What should you check before you sign a contract?

The contract matters as much as the rate, so read the contract terms carefully and pay close attention to the points below before you commit. If you're in doubt, it's also worth speaking to a qualified lawyer.

1. The length of the term and the notice period
2. Whether the contract renews on its own at the end of the term
3. What it costs to leave early
4. Whether the price can change during the term, and how much notice you get
5. Whether you own the hardware or return it when you leave
6. Whether the quoted rate covers every card type your customers use
7. Who you call when the machine stops working on a Saturday

Ask for anything you are unsure about in writing, and keep a copy of the terms you agreed.

What about cash takings?

Cash is still part of daily trading for many shops, stalls and convenience stores. Many keep a float and bank their takings weekly.

Where you bank them matters when there is no branch near your shop. Some business accounts let you pay cash in over the counter at a Post Office instead. The government confirmed a minimum network of 11,500 branches in February 2026. The Post Office branch finder shows what is near you. Paying in over the counter suits shops and stalls trading past bank opening hours.

Taking card payments with a Zempler Bank business account

Whichever machine you choose, your takings need somewhere to land. Zempler Bank business current accounts are built for small businesses, including shops and market stalls. You can apply online in minutes. Once approved, you get a sort code and account number, and your debit card follows by post. The account is open to start-ups and businesses with limited trading history.

One of the great benefits of a Zempler account is that we don’t charge any fees for daily card settlements.

Zempler Bank business customers can also take contactless payments in the Zempler Bank app, with the phone acting as the payment terminal. There is no separate card reader to buy, which suits a stall, a pop-up or a second till point at busy times. Learn more about Tap to Pay to see how it works.

These features tend to matter most to a shop:

• Cash deposits at any UK Post Office branch
• Instant payment notifications, so you can check takings against the till
• Pots, for setting money aside for VAT, rent or stock
• Accounting integrations with Xero, QuickBooks, Sage and FreeAgent
• UK telephone support from real people, if you have a question about the account

Eligible deposits with Zempler Bank are protected up to a total of £120,000 by the Financial Services Compensation Scheme (FSCS). The FSCS raised the deposit protection limit to that level in December 2025. Fees and features for each account are set out on the pricing page.

Where to check the details

This article is an overview. The detail depends on your own contracts, your card mix and how you trade, so check the official sources before you act on anything here.

• Card surcharge rules: legislation.gov.uk
• How a payments provider or bank is regulated: the FCA register
• What deposit protection covers: the FSCS
• Your nearest branch for paying in cash: Post Office branch finder

For anything that turns on your own circumstances, speak to a qualified accountant or adviser.

Next steps

Work out your average sale value and your monthly card takings. Ask two or three providers to price a full rate card against those numbers before you sign anything.