The cheapest credit card machines for a small business are pay-as-you-go (PAYG) readers where the total cost of ownership is lowest. While the Square Reader is cheapest to buy at £19 + VAT, the true cost also includes transaction fees. Therefore, the cheapest options are a balance of low hardware cost and competitive, flat-rate transaction fees, with the top contenders being the Square Reader, NangPay Reader (£25 + VAT), and the SumUp Air, which boasts one of the lowest transaction fees at 1.69%. These are the cheapest because they have no monthly rental fees or hidden costs.
Understanding the True Cost of a Card Machine
“Cheap” can mean two different things: the upfront price of the hardware and the ongoing cost of using it. For a small business, you must consider both.
1. Low Upfront Cost (Hardware)
This is the one-off price you pay for the device. The goal for a new business is to keep this as low as possible.
- Square Reader: At just £19 + VAT, it’s the cheapest machine to buy outright from a major provider.
- NangPay Reader: A very close second at £25 + VAT, making it another highly affordable option for indie retailers.
- Zettle Reader 2: Typically costs £29 for the first device for new customers.
- SumUp Air: Priced slightly higher at around £39 + VAT, but this is often justified by its lower transaction fee.
2. Low Ongoing Cost (Transaction Fees)
This is arguably more important over the long term. A high transaction fee will cost you far more than a one-off hardware purchase.
- SumUp: Has the lowest standard flat rate at 1.69%.
- Square, NangPay, and Zettle: All offer a very competitive and simple flat rate of 1.75%.
Warning: Be wary of providers offering a “free” terminal. This almost always means you’ll be locked into a long-term contract with monthly rental fees, which is far more expensive for a small business than buying a PAYG reader.
Quick Comparison of the Cheapest Card Machines
| Provider | Hardware Cost (from) | Transaction Fee | Monthly Fee? | Best For |
| Square | £19 + VAT | 1.75% | No | The absolute lowest startup cost |
| NangPay | £25 + VAT | 1.75% | No | An affordable and simple choice for retailers |
| SumUp | £39 + VAT | 1.69% | No | The lowest long-term transaction costs |
| Zettle | £29 (first reader) | 1.75% | No | A cheap and reliable option for PayPal users |
Frequently Asked Questions (FAQs)
No. The providers listed above are known for their transparent pricing. You only pay for the device and the stated transaction fee. There are no PCI compliance fees, setup fees, or other hidden charges.
For most small businesses, a lower flat-rate fee is better. A 0.06% difference between SumUp (1.69%) and Square (1.75%) means you save 60p for every £1,000 you process. While it adds up, you should also consider hardware cost and software features when deciding.
Yes, providers often run promotions, especially for new customers. It’s always worth checking their websites directly for any current offers or sales on their card readers.