Cheapest Ways to Take Card Payments in 2024

According to our research, Retail Merchant Services, Tyl, and Revolut provide the cheapest way to take card payments, either because of low transaction fees, reasonably priced card machines, or a lack of hidden fees.

With card payments accounting for 90% of retail spending, it’s no surprise that UK retailers collectively spend around £1.2 billion on card processing fees each year, according to the British Retail Consortium.

Transaction fees, account fees, and card machine rental costs can all add up, so looking for a cheap way to take card payments has never been more important for businesses. To help you save time as well as money, we’ve analysed 11 top merchant service providers to find out which are cheapest:

If you’re still unsure which provider to pick, don’t worry: in this article, we cover the pricing, pros, and cons of the five cheapest contenders, so you can find out which of our top credit card machine providers fits your budget best.

Want to get totally accurate prices as quickly as possible? Tell us about your business to be matched with suitable providers who’ll share no-obligation, tailored quotes. Get started by answering the question below:

The cheapest merchant services for taking card payments

These are our top five picks for cheap merchant service providers:

1. Retail Merchant Services – Cheapest transaction fees

What’s Retail Merchant Services’ biggest draw as a cheap payment service provider?

Retail Merchant Services’s biggest draw is that it offers cheap transaction fees; 0.4% for UK debit cards, and 0.8% for UK credit cards on average.

However, what you’ll pay per transaction depends on your contract, since most things are negotiable with Retail Merchant Services, which is part of its appeal. You’re more likely to get a good deal if you process a lot of card payments (over £2,000 per month).

A contract with Retail Merchant Services will also give you access to its comprehensive reporting tools, accessed via desktop. You’ll be able to track sales in real-time, manage employee performance, create individual and customised dashboards, monitor wastage, and manage stock transfer.

Because of its cheap, negotiable fees, and reporting tools that help manage inventory and employees, Retail Merchant Services is a good option for small businesses that have several team members and take a lot of card payments. Ideal candidates are restaurants, retail stores, and beauty/hair salons.

Is Retail Merchant Services good value for money?

Retail Merchant Services is good value for money, especially if you take a lot of card payments.

Its transaction fees (0.4%-0.79% + 10p) are the cheapest offered by any provider on this list, and its negotiable account fees start at £10 per month, half of what you’d be paying for competitors such as takepayments.

On top of the price, a contract with Retail Merchant Services also gives you access to a breadth of reporting tools, as well as the ability to take over-the-phone and online payments, so you’re getting more than what you’re paying for.

That being said, Retail Merchant Services’s lack of clarity on its fees makes it hard to predict how much you’ll be paying exactly. With negotiable pricing structures, businesses with a low monthly transaction volume tend to get a rough deal. If that’s you, we’d recommend going with a provider that’s more upfront with pricing, such as Revolut or Zettle, instead.

How do Retail Merchant Services’ prices compare to other options?

• Transaction fees: Retail Merchant Services offers the cheapest transaction fees of any provider on this list, but it’s possible for you to get a better deal with takepayments, since they also offer negotiable pricing. Otherwise, Retail Merchant Services’ average 0.4% fee for debit card transactions is much cheaper than Tyl’s 1.5% or Zettle’s 1.75%. Revolut, however, does get close with 0.8% +2p.
• Account fees: Retail Merchant Services’ negotiable account fees start at £10 + VAT, which is cheaper than takepayments’ £25 + VAT. However, Tyl, Revolut, and Zettle don’t charge any account fees, making them the cheapest options in this category.
• Card machine prices: Retail Merchant Services doesn’t disclose its card machine rental fees, so it’s difficult to compare it to competitors. Similarly to takepayments, prices will vary depending on the machine you choose and what you negotiate. If you don’t take a lot of payments, it might be more worthwhile to purchase a card machine outright from Zettle, which only charges £29 + VAT for the Zettle Card Reader 2.
• Payment gateway prices: Once again, the price of using Retail Merchant Services’ payment gateway is undisclosed. What we can tell you is that it gives you access to payment links and a virtual terminal (for over-the-phone payments), and you’re more likely to get a better deal with a bundle like this. That being said, Revolut and Zettle’s payment gateways don’t cost anything, making them the cheapest options.
• Virtual terminal prices: A virtual terminal is included in Retail Merchant Services’ payment gateway bundle, which makes it cheaper than if you were paying separately. takepayments also gives you the option of combining a payment gateway with a virtual terminal, or simply having a virtual terminal on its own, but neither provider is transparent about prices. You could get quotes from both and use this to negotiate a competitive price, or you could opt for Tyl, which also bundles payment gateways with virtual terminals, and is transparent about pricing (its offer costs £14.95 + VAT per month). Neither Revolut nor Zettle offer a virtual terminal, so it’s no use comparing prices here.

2. Tyl – Cheapest 4G plans

What’s Tyl’s biggest draw as a cheap payment service provider?

Tyl’s biggest draw is its cheap 4G card readers. It offers four in total, with three that come with 3G/4G connectivity, the cheapest one costing £9.99 + VAT per month. For comparison, takepayments only provides one 4G card reader, starting at £25 + VAT per month, and 4G with Zettle only comes with its £149 Zettle Terminal.

Tyl is also extremely clear about its pricing, which is a plus for businesses looking to avoid hidden fees, with its 1.5% transaction fee applying to in-person, online, and phone payments. The only uncertainty is what you’ll pay if you decide to accept Amex, whose rates vary.

Only one of Tyl’s card machine subscriptions, the Clover Flex, which costs £16.99 + VAT per month option, comes with employee and inventory management – the rest are limited to recording transactions and orders. For this reason, Tyl is best suited to solo merchants, or teams of two, who take regular card payments and want clear pricing from their payment provider.

In particular, Tyl’s affordable range of 3G/4G card readers makes it a good option for mobile or outdoor businesses, such as food vans and market vendors.

Is Tyl good value for money?

Tyl offers good value for money, especially for small teams on the move. Tyl doesn’t charge an account fee and its 1.5% transaction fee occupies a solid middle ground in the market, especially for a fixed rate provider.

Its £9.99 + VAT per month 4G card reader is particularly good value for businesses that operate on the go, while its £16.99 + VAT per month reader is a decently priced offering for businesses with a few employees (thanks to its reporting features), such as cafes.

The fact that these reporting tools aren’t available with Tyl’s most expensive £21.99 + VAT per month 3G card reader does raise some eyebrows though, and makes you wonder how Tyl justifies that price.

Tyl also lacks multi-currency support on any of its card readers, which makes it a no-go if you have international customers.

How do Tyl’s prices compare to other options?

• Transaction fees: Tyl’s flat-rate in-person and online 1.5% transaction fee is cheaper than Zettle’s 1.75%-2.5% fees, but more expensive than Revolut’s 0.8% +2p-1% +p fee for UK cards (in-person and online). Revolut charges more for international cards, but since Tyl doesn’t accept these, it’s not possible to compare. Retail Merchant Services and takepayments offer negotiable fees, and if you take a lot of card payments, it’s likely you’ll get a cheaper rate (0.4%-0.8%) with them than with Tyl.
• Account fees: Tyl doesn’t charge account fees, unlike Retail Merchant Services and takepayments, so it’s a better deal in that regard. Revolut and Zettle don’t have account fees either, so the fact that Tyl doesn’t isn’t exceptional, but certainly is a bonus.
• Card machine prices: Tyl’s card machines range from £9.99 + VAT per month to £21.99 + VAT per month, making them on average cheaper than takeayments, which offers card machine rentals starting from £25 + VAT per month. Retail Merchant Services, the only other subscription-based provider on this list, doesn’t disclose its card machine prices.
• Payment gateway prices: Tyl’s £14.95 + VAT per month payment gateway is cheaper than takepayments’, which can cost up to £19 per month, but it’s beat out by Revolut and Zettle, which both offer a payment gateway for free.
• Virtual terminal prices: Tyl’s virtual terminal is included as part of its payment gateway package, which costs £14.95 + VAT per month. takepayments offers a virtual terminal either as a bundle with a payment gateway for up to £19 per month, which is more expensive than Tyl, or as a standalone, but it’s unclear how much that would cost. Revolut and Zettle don’t offer virtual terminals, and Retail Merchant Services doesn’t disclose its virtual terminal prices.

3. Revolut – Generally inexpensive

What’s Revolut’s biggest draw as a cheap payment service provider?

Using Revolut is a generally cheap way to take payments. Its transaction fees are particularly cheap for a fixed-rate provider, at 0.8% + 2p for in-person payments made with a UK card, and you can own your card reader outright for a one-off £49 charge.

Most importantly, Revolut comes with no monthly fees and no contract termination fees, and doesn’t charge you anything to sell online with its payment gateway.

Plus, since Revolut is first and foremost a bank, your business bank account, merchant account, and payment processor will all be managed by the same provider, which can make taking payments much easier.

Revolut’s all-in-one, no strings attached structure makes it a good option if you’re just starting to take card payments and want an affordable starter service. It’s best suited to independent stores or boutiques, online resellers who do in-person pop-ups, or other sole traders.

Don’t have a merchant account yet or looking to switch? You might find our merchant account comparison guide useful.

Is Revolut good value for money?

Revolut is the best value for money no-contract, fixed-rate payment provider we’ve found in our research.

It charges a transaction fee of 0.8% + 2p for in-person payments, and 1% + 2p for online purchases, which is cheaper than most fixed rate providers, including Zettle. Revolut is a bank that also specialises in making international transactions easier and cheaper, and you’ll be able to accept payments in over 30 currencies with them. If you have a few international customers that travel to buy your products, this could be handy.

Revolut’s transaction fees are only beaten by more traditional providers such as takepayments and Retail Merchant Services, who offer negotiable fees, but these are only suitable for businesses with a high transaction volume.

If you’re a startup, sell goods or services on the side, or supplement in-person sales with online ones, then Revolut offers some of the best value out there.

You get a good deal with Revolut. It has 16 third-party integrations (more than Retail Merchant Services and Tyl), including accounting software such as QuickBooks, and ecommerce platforms such as Shopify. This makes it easy for you to run your business on many different fronts. Revolut also has a free payment gateway, and automatic PCI compliance on all Revolut applications.

However, if you’re a small business with a growing team and business, takepayments and Retail Merchant Services would be better suited to you. Both providers are more flexible with pricing, and you’ll find you can negotiate lower prices as your needs and sales increase.

How do Revolut’s prices compare to other options?

• Transaction fees: Revolut’s transaction fees (0.8% + 2p-1% + 2p for UK cards), are cheaper than Tyl’s (1.5%) and Zettle’s (1.75%-2.5%). If you have a high sales volume, however, you’ll probably be able to negotiate transaction fees of 0.4%-0.8% with Retail Merchant Services, or lower with takepayments, thanks to its negotiable pricing.
• Account fees: Revolut doesn’t charge any account fees, neither do Tyl or Zettle. Retail Merchant Services and takepayments, however, do, with takepayments being the most expensive (from £20 + VAT per month).
• Card machine prices: Revolut’s card machine is on the expensive side, costing £49 + VAT, compared to Zettle’s £29 + VAT for a similar reader.Card readers typically cost £25-£30 to purchase, making the Revolut Reader a pricey option.
• Payment gateway prices: Revolut’s payment gateway is free, as is Zettle’s, making them both cheaper than Tyl, which charges £14.95 + VAT per month, and takepayments, which charges up to £19 per month for one.
• Virtual terminal prices: Revolut doesn’t provide a virtual terminal, so if your business takes payments over the phone, you’re better off choosing takepayments, Retail Merchant Services, or Tyl.

4. Zettle – Cheapest POS system

What’s Zettle’s biggest draw as a cheap payment service provider?

Zettle’s biggest draw is its cheap card machine, costing only £29 + VAT outright compared to Revolut’s £49 + VAT, and its comprehensive EPOS system, the Zettle POS app. You get access to this for free when you purchase a card reader.

Its reporting features include analytics, sales forecasting, inventory management, and staff hours management, all of which are rare offerings for a no-contract, fixed-rate provider.

Zettle’s lucky charm is its customer support. While it’s only available during weekdays, customers have the option to contact Zettle via phone, email, or live chat. This puts it in a better position than Revolut and Tyl, both of which lack an email support channel.

However, because of its high transaction fees (1.75% for in person payments), Zettle isn’t a good option if you have a high monthly sales volume (over £2,000). It’s best suited to market vendors and small cafes whose customer bases don’t exclusively pay by card.

Is Zettle good value for money?

Zetlle is decent value for money. Its transaction fees (starting at 1.75%) are quite high compared to other providers, but it doesn’t charge monthly fees, and its payment gateway is free to use, since it’s operated by PayPal.

Its mobile card machine is also fairly priced, costing £29 + VAT to purchase, but this jumps up to £149 if you want to purchase the Zettle Terminal. This comes with a dock, can operate on 4G, and allows you to access the Zettle POS app directly from it, instead of using it on your phone, as is the case when you just buy the Zettle mobile card reader.

Additionally, despite offering over 21 third-party integrations, many customers have complained that these don’t always work smoothly with Zettle’s POS app, especially accounting software such as Quickbooks. This means you might not really be getting what you’re paying for.

That being said, if you don’t want to be tied down by contracts and exit fees, as you would with more traditional payment providers such as takepayments and Retail Merchant Services, then Zettle is a good alternative.

How do Zettle’s prices compare to other options?

• Transaction fees: Zettle charges the most expensive transaction fees of any provider on this list, at 1.75% for in-person payments. Tyl’s fees are 1.5%, while Revolut only charges 0.8% + 2p for in-person transactions.
• Account fees: Zettle, like Revolut and Tyl, doesn’t charge any account fees, while Retail Merchant Services and takepayments do. takepayments is the most expensive with fees starting at £20 per month, while Retail Merchant Services costs start at £10 per month.
• Card machine prices: Zettle’s cheapest card machine is much more affordable than the Revolut equivalent, at £29 + VAT compared to £49 + VAT. This jumps up to £149 + VAT for its more advanced EPOS terminal, the Zettle Terminal, which is more expensive than the equivalent offered by competitor SumUp (£129 + VAT), which is not on this list since overall pricing is higher than the providers we feature here.
• Payment gateway prices: Zettle’s payment gateway is operated by PayPal and is free to use, making it cheaper than Tyl’s payment gateway (£14.95 + VAT per month), and takepayments’, which costs up to £19 per month.
• Virtual terminal prices: Zettle, like Revolut, doesn’t provide a virtual terminal, so if your business takes payments over the phone, you’re better off choosing takepayments, Retail Merchant Services, or Tyl.

5. takepayments – Custom pricing packages

What’s takepayments’ biggest draw as a cheap payment service provider?

Takepayments’ biggest draw as a cheap payment provider is its negotiable monthly fees and transaction fees, and its solid suite of reporting tools.

Like Retail Merchant Services, takepayments offers bespoke and negotiable pricing, which is tailored to each business. If you process a lot of card transactions a month (over £2,000), this means you could end up with transaction fees as low as 0.3%, but this is guaranteed.

Many businesses also appreciate takepayments’ wide range of EPOS tools, which include real-time card processing, cash tracking, product customisation, real-time inventory and employee sales tracking, accounting, and detailed receipt generation.

All this makes takepayments best for medium-sized businesses that can fully use (and make the most out of) its detailed reports and product customisation, while benefiting from cheap fees. Ideal candidates are restaurants, salons, and bakeries with multiple locations.

Is takepayments good value for money?

takepayments offers decent value for money if you’re able to negotiate cheap transaction fees, but it ends up in the fifth spot on this list due to its high monthly account fee. With a starting price of £20 + VAT, it’s more expensive than a lot of competitors. For example, Retail Merchant Services has a monthly fee of around £10 + VAT, Worldpay’s is £9.95 + VAT, and Barclaycard’s is £15 + VAT.

Beyond that, takepayments’ mandatory contract length of 18 months is among the longest we’ve seen in our research into the payment services sector (where contracts typically last 12 months).

However, businesses with international customers will hugely benefit from takepayments’ multi-currency support: it accepts 170 currencies, which is 50 more than Worldpay and 70 more than Retail Merchant Services. This makes takepayments worth the higher monthly fee for international businesses, if the additional currencies it offers are used by some of your customers.

How do takepayments’ prices compare to other options?

• Transaction fees: takepayments offers negotiable transaction fees, which means that you can negotiate cheap fees if you take a lot of card payments. This makes it cheaper than fixed-rate suppliers such as Zettle, which charges a 1.75% transaction fee for in-person payments.
• Account fees: takepayments charges the most expensive account fees of any provider on this list, starting at £20 + VAT per month. By contrast, Retail Merchant Services’ fees start at £10 per month, and Tyl, Revolut, and Zettle don’t charge any account fees.
• Card machine prices: takepayments card machines start at £25 + VAT per month to rent, which is more expensive than Tyl’s £9.99 + VAT month to £21.99 + VAT per month range. However, because of its negotiable transaction fees, takepayments could work out cheaper in the long run if you process a lot of card payments, since you’ll be able to negotiate a cheap transaction fee. If you don’t want to pay monthly for card machines, you could choose Zettle or Revolut, who sell them instead of renting them.
• Payment gateway prices: takepayments’ payment gateway can cost up to £19 per month, making it more expensive than Tyl’s £14.95 + VAT per month offering. However, Revolut and Zettle both offer free payment gateways, making them the cheapest option for this service – something to consider if you sell online a lot.
• Virtual terminal prices: takepayments’ payment gateway package typically includes a virtual terminal, although it can also be used as a standalone product for a lower monthly fee that takepayments doesn’t disclose. Given that Tyl bundles its virtual terminal with its payment gateway for £14.95 + VAT per month, if you only need to take over the phone payments and don’t sell online, takepayments might be a more economical option.

Buying guide: How to choose a cheap payment service provider

Here’s what to consider while choosing a payment service provider:

Transaction fees

Some payment service providers, such as Revolut and Zettle, offer flat rate, or fixed, transaction fees. This means you pay the same fee every time you process a card.

Others offer variable rates, where the fee changes depending on the type of card the customer is using, and these are often presented as negotiable transaction fees. What you’re actually negotiating is the cut your payment provider takes from a transaction, as card network fees (from providers like Visa and Mastercard) are determined by the card network itself.

Variable rates offer better value for money if you process a lot of card payments, while flat rates work better for small businesses with lower sales volumes.

You can read more about card processing fees in our in-depth guide.

Payment system prices

It’s also important to look at what type of payment system a provider offers (such as card machines, EPOS apps, payment gateways, and virtual terminals) and how much they cost.

Make sure you’re not paying for anything you don’t use. For example, if you don’t take online payments, don’t go with a provider that includes and charges you for a payment gateway on its monthly plan regardless of whether you need it or not. However, if it’s included free of charge, with a provider like Zettle, it could be a useful addition if you plan on selling online in the future.

Some providers operate on monthly fees, like a subscription, while others accept one-time purchases for payment systems such as credit card machines. Which pricing model you choose to go with depends on your business.

Monthly subscriptions tend to work out cheaper for businesses that process a lot of card payments, since they’re often paired with cheap transaction fees. One-time purchase models work best for businesses that have a low monthly transaction volume and sell online, since providers that offer them typically also have a free, or very cheap payment gateway service.

Contract length

It’s important to think ahead before getting into a long-term contract with a payment service provider, since many providers, including Retail Merchant Services, will charge you for terminating your contract early.

Most providers that operate on a subscription model offer contracts between six and 18 months, while providers that allow you to purchase card machines outright typically don’t lock you into a contract.

If your business has irregular sales, or goes through ups and downs, it’s probably better to go with a no-contract provider.

Fund transfer time

If your business relies on a quick flow of funds, you’ll want to choose a payment services provider that transfers funds in one to two business days. Some can even offer instant access to funds, although this typically comes with an added fee.

The slowest transfer time we’ve seen is Stripe’s full week, but one to three business days is the industry standard.

Ready-made software integrations

If you’re planning on growing your business, or already have software that you use – accounting software, for example – make sure the payment provider you choose can integrate with it.

Some providers, such as Zettle, Revolut, and takepayments, can integrate with over 15 different software platforms, while others, such as Retail Merchant Services, are limited to one (CounterPay).

PCI compliance and fraud prevention measures

It’s important to choose a provider that’s PCI compliant and has fraud prevention measures that will protect both your business and your customers’ sensitive data.

Some providers will charge a fee for you to stay PCI compliant, while others include it as part of their service. Some also require you to become PCI compliant by completing a self-assessment form, with varying levels of support.

It’s not a legal requirement in the UK, but all card networks require it, and can fine your bank if you don’t comply. That fine usually then gets passed on to you, so it’s best to stay vigilant.

Reporting tools

Providers that operate on a monthly subscription model, such as takepayments and Retail Merchant Services, tend to come with a wider breadth of reporting tools. These types of providers work well for businesses that have several employees, or multiple locations they sell at.

One-time payment providers typically have more limited tools, and are better for very small operations, consisting of one or two people. There are some exceptions, however, such as Zettle, whose free EPOS app includes advanced features such as inventory tracking and staff management.

Think about what tools your business needs, or will need, before choosing a provider.

Ease of setup and implementation

Ease of use is important, especially if your business is just starting out.

Unfortunately, the more in-depth a provider’s sales and management features become, the less user friendly it tends to be. But if your business requires advanced functions, you’re probably more experienced with card payments, so this won’t be an issue.

The most user friendly payment service providers give you one app where you can track transactions and revenue, but they might feel limited as your business grows.

Help and support

In an ideal scenario, you shouldn’t have any issues with your payment provider’s services, but in case things go wrong, it’s important that they have an easily reachable support team.

Ideally, the provider should have a support number you can call. It’s also worth looking at the support team’s opening hours. If your business is most active on the weekends, it’s a good idea to go with a provider whose customer service team is open on those days.

How We Test Merchant Account Products and Services for UK Businesses

We tested 11 market-leading payment products and services, evaluating them in terms of functionality, usability, regulatory compliance, customer support, and more in order to make the most useful recommendations to UK businesses.

Our rigorous testing process means these products have been scored and rated in six main categories of investigation and 25 subcategories – in fact, we covered 36 areas of investigation in total. We then gave each category score a ‘relevance weighting’ to ensure the product’s final score perfectly reflects the needs and requirements of Expert Market readers – and that’s our product testing algorithm in a nutshell!

Our main testing categories for payment products and services are:

Compliance: adherence  to relevant regulations and standards, such as data security, anti-fraud measures, and legal requirements.

Customer Support: the assistance and resources provided to users in resolving issues, answering questions, and providing guidance.

Customer Score: external customer opinion; the feedback and ratings given by customers who have used a particular provider – the market position and reputation it holds.

Features: the functionalities and capabilities provided. This can include online payment processing, payment gateway integration, and fraud prevention.

Taking Payments: the process and options available for accepting payments through the provider.

Price: the cost associated with using the provider, including transaction fees, setup fees, monthly fees, and any additional charges.