Cheapest Ways to Take Card Payments in 2026

Tyl by NatWest is the cheapest way for most small businesses to start taking card payments in 2026, based on our research of 18 UK providers across five core assessment areas and 23 further subcategories.

It’s flat 1.39% + £0.05 transaction fee applies to in-person, online and phone payments (UK and EU), and its 4G terminals, from £13.99 per month with next-day payouts, keep total costs to the lowest we found (and without the usual uplift for card-not-present transactions).

Close runners-up were Revolut for the lowest fixed UK-card fee (0.8% + £0.02, £49 reader, no monthly fees; non-UK cards 2.6% + £0.02) and Zettle by PayPal for the lowest upfront reader price (£29 + VAT, free POS app, no monthly fees; 1.75% in-person).

Ultimately, the exact answer to the ‘cheapest ways to take card payments’ in the UK will depend on your business’s specific monthly turnover, average transaction size and usual card payment type. Read on for our full review of the cheapest merchant services compared.

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Overview: The Cheapest Merchant Services for Taking Card Payments

These are our top picks for cheap merchant service providers:

1. Tyl by NatWest: Cheapest 4G Plans

• Transaction fees: 1.39% + £0.05 to 1.99% + £0.05
• Card machines: £13.99/£14.99/£19.99 per month + VAT
• Contract: Zero-contract or 12 months

What makes Tyl by NatWest a low-cost way to take card payments?

Published transaction fees for smaller businesses: Tyl has 1.39% + £0.05 per transaction for UK/European personal cards, and 1.99% + £0.05 per transaction for “all other cards” (with custom pricing available for higher turnover). By comparison, Revolut publishes lower in-person UK-card fees (0.8% + £0.02), while Zettle’s in-person rate is higher (1.75%).

No “card-not-present” uplift (per Tyl’s pricing notes): Tyl does not add extra charges just because a payment is taken online, over the phone, via payment link or on an international card. Revolut publishes separate, higher online rates by comparison, while Zettle publishes a higher fee for payment links and invoicing (2.5%) than in-person (1.75%).

Low terminal hire costs (12-month hire options): Tyl’s hire pricing starts at £13.99 + VAT per month for the PAX A80 (countertop), £14.99 + VAT per month for the PAX A50 (handheld, mobile connectivity) and £19.99 + VAT per month for the PAX A920 Pro (mobile). A per-month deal means you can upgrade when needed, without having to sell hardware.

• Buy-once options can be cheaper for very low usage (e.g. Revolut Reader is a one-off £49; PayPal/Zettle’s first PayPal Reader is £29, excluding VAT), while takepayments is typically positioned as a contract-and-rental model for higher-volume merchants.

Cash-flow advantage (next business day settlements): Tyl advertises next business day settlement, which can reduce cash-flow pressure for UK SMEs operating on tight weekly cycles.

• takepayments also advertises next working day settlement but payout speed varies across the wider market, depending on provider and bank.

Hardware-free option (Tap to Pay): Tyl markets Tap to Pay on iPhone and Android with £0 monthly hire (transaction fees still apply), which can remove the cost of renting or buying a reader for mobile staff.

• Revolut also offers Tap to Pay on iPhone, but publishes an additional per-transaction fee for Tap to Pay on iPhone (on top of its card acceptance fees).

Why can this make Tyl by Natwest cheap in 2026?

Tyl’s published pricing is structured around card type (e.g. personal versus “all other cards”) rather than charging more purely because the payment is taken online, by link or over the phone, which can keep blended costs lower for mixed-channel sellers.

Who’ll get the most value for money with Tyl by NatWest?

• On-the-go sellers: Tyl’s £13.99 + VAT 4G card machine is ideal for food truck operators or market sellers.
• Small stores: The £14.99 + VAT per month EPOS and card machine combo is well-suited for cafes or small stores with more complex inventory needs. It includes features like employee and inventory management.

What may cost extra with Tyl by NatWest?

• American Express pricing and compliance: American Express rates are quote-based and can vary by industry. PCI DSS costs may apply if Tyl determines your business is subject to additional requirements.
• Online checkout costs (gateway subscription versus free gateways): Tyl prices its online payment gateway at £14.95 + VAT per month (with the virtual terminal typically bundled into that package).
  • Revolut and Zettle market online payments without a separate gateway subscription, which can be cheaper if you only need basic online checkout (you still pay per-transaction fees).

When may Tyl by NatWest not be the cheapest fit?

If you only take occasional, low-value card payments and don’t need next-day settlement, a buy-once reader with no contract (e.g. Revolut Reader or PayPal/Zettle PayPal Reader) can be cheaper overall than paying 12 months of terminal hire.

Best alternatives to Tyl by NatWest

• Zettle – for no ongoing hardware costs: Offering similar features without ongoing rental fees, the Zettle PayPal Terminal can be purchased outright for £149.
• Revolut – for international businesses: Tyl’s card readers lack multi-currency support, making them unsuitable for businesses with international customers. Revolut is a specialist in this regard, although its transaction fees for international cards are higher than Tyl’s, at 2.6% + £0.20.
• takepayments – for more software integrations: Tyl’s minimal software integration options may not suit businesses requiring extensive tool syncing. takepayments, Revolut and Zettle provide more comprehensive integration options.

2. Revolut: Cheapest Fixed Transaction Fees

• Transaction fees: 0.8% + £0.02 to 2.8% + £0.02
• Card machines: £49 (one-time fee)
• Contract: Zero-contract

What makes Revolut a low-cost way to take card payments?

Low in-person and online fees: Revolut has 0.8% + £0.02 for domestic consumer cards and 2.6% + £0.02 for domestic commercial and international cards, which can be very competitive if most of your takings are UK consumer card-present payments.

• Revolut’s online fees are 1% + 20p for domestic consumer cards and 2.8% + 20p for domestic commercial and international cards. Unlike Tyl, Revolut doesn’t present online acceptance as a separate monthly subscription, either.

Cash-flow advantage: Revolut advertises fast settlements “within 24 hours,” including weekends and holidays, which is faster than providers that pay out on a one to two-business-day cycle. For comparison, Zettle states payouts typically take one to two business days, while Tyl advertises next-business-day settlement.

Hardware-free (Tap to Pay) and buy-once hardware: Revolut supports Tap to Pay on iPhone (no separate reader required) but adds an extra £0.08 per Tap to Pay transaction, and it also sells dedicated hardware outright (e.g. Revolut Reader) rather than forcing a 12-month terminal hire.

Multi-currency acceptance for ‘international-local’ trade: Revolut positions card acceptance around receiving and settling in multiple currencies (useful for UK SMEs serving tourists, expats, or online international buyers), but its published international card fees are materially higher than its domestic consumer rate.

Single dashboard for banking and takings: Revolut routes card takings into your Revolut Business environment (rather than paying out to a separate bank portal), which can reduce admin overhead for owners.

Why can this make Revolut cheap in 2026?

Revolut can keep total cost low when your sales are mostly UK consumer card-present, you value very fast settlement and you want hardware-free Tap to Pay for pop-ups or mobile staff, while still having the option to buy a reader outright instead of paying 12 months of terminal hire.

Who’ll get the most value for money with Revolut?

• Small businesses and sole traders: Revolut’s simple, no-commitment structure is a cost-effective choice for those new to card payments, especially suited for independent shops, boutiques, online sellers doing in-person pop-ups and other sole traders.
• Business accepting international payments: Revolut, as a bank, makes international transactions more affordable and convenient, allowing you to accept payments in over 30 currencies — perfect if you have a few international customers.

What may cost extra with Revolut?

• Revolut Business plan subscription costs apply: Revolut’s Business account plans are priced as subscriptions (e.g. Basic from £10 per month), so Revolut is not automatically zero fees, even if card acceptance itself isn’t packaged as a separate gateway subscription.
• International and commercial cards cost significantly more than UK consumer cards: Revolut’s published in-person rate rises to 2.6% + £0.02 for international and domestic commercial cards, and online rises to 2.8% + £0.20, so cafes and retailers with meaningful tourist/expat spend can see a higher blended rate than expected.
• The fixed £0.20 online element can punish low-value online sales: Revolut’s published online pricing includes a £0.20 fixed fee per transaction, which can disproportionately increase costs for small-ticket online payments (e.g. low-value deposits, add-ons, or micro-orders), even when the percentage rate looks low.
• Tap to Pay adds a per-transaction surcharge: Revolut’s Tap to Pay on iPhone pricing adds £0.08 per transaction on top of the normal card fee, so Tap to Pay is hardware-free but not fee-free.

When may Revolut not be the cheapest fit?

Revolut is often not the cheapest overall if you take lots of international/commercial cards, process low-value online transactions where a £0.20 fixed fee bites or you don’t want an ongoing Business account subscription layered into your payment stack.

Best alternatives to Revolut

• takepayments – for high-volume transactions: Businesses processing a large number of transactions each month will find takepayments to be a better fit due to its flexible and negotiable pricing, which adapts as your sales and needs grow.
• Tyl – for more hardware and reporting options: Revolut offers two card readers and has basic reporting tools, making it more appropriate for smaller sellers rather than businesses with multiple employees and complex inventory needs. Tyl is a solid choice in this sense.

3. Zettle by PayPal: Cheap Card Machines

• Transaction fees: 1.75% to 2.5%
• Card machines: £29 to £149 (one-time fee)
• Contract: Zero-contract

What makes Zettle by PayPal a low-cost way to take card payments?

No monthly fees or long-term contract: Zettle markets card acceptance as pay-as-you-go, meaning you don’t pay a required monthly subscription to take in-person card payments, which can keep total costs low for seasonal or low-turnover businesses.

Simple in-person pricing: Zettle’s published rate for card and contactless payments is 1.75% per transaction, which is easy to model in a 12-month “total cost” forecast.

• By comparison, Revolut can be cheaper for UK consumer in-person payments (0.8% + £0.02), while Tyl can be cheaper than Zettle for some mixed-channel sellers if its flat pricing prevents higher remote-payment charges.

Low upfront hardware cost with no printing dependencies: Zettle advertises one PayPal Reader for £29, excluding VAT, for a new eligible business user, albeit with additional readers priced higher.

• Zettle’s hardware ecosystem supports digital receipts and app-based checkout workflows, so a built-in printer is often optional if your business already runs eco-receipts, QR tipping or app receipts as standard.

Hardware-free Tap to Pay option: Zettle markets Tap to Pay as requiring no additional hardware and having no extra fees beyond its standard card rate, which can reduce upfront costs for pop-ups, queues, or mobile staff.

• By comparison, Revolut’s Tap to Pay on iPhone adds an extra per-transaction charge (on top of processing fees), while Tyl’s Tap to Pay is positioned as simply hardware-free.

Clear cash-flow expectations: Zettle states it pays out funds within one to two business days of the transaction date (then your bank’s processing time applies), which helps SMEs plan working capital more predictably.

• Some providers that settle within 24 hours can outperform this on cash-flow speed, while slower settlement cycles can create funding gaps for payroll and stock orders.

Why can this make Zettle cheap in 2026?

Zettle can be a low total-cost option when you want no mandatory monthly fees, a low-cost starter reader, and a simple flat in-person rate, especially if you don’t need a paid gateway subscription or a rented terminal.

Who’ll get the most value for money with Zettle?

• Companies that want no monthly fees or long-term contracts: Zettle offers a cost-effective solution for small businesses, making it an attractive alternative to traditional payment providers like takepayments.
• Business requiring extensive customer support: Zettle provides customer support via phone, email, and live chat, available on weekdays. This is more comprehensive than support options from Revolut and Tyl, which do not offer email support.

What may cost extra with Zettle by PayPal?

• Remote payments often cost more than in-person: Zettle lists invoices and payment links at 2.5% (where available), which is meaningfully higher than its 1.75% in-person rate.
  • On the other hand, Tyl publishes pricing that does not add extra charges purely because a payment is taken online, by-link, or over-the-phone (so blended costs can be lower for mixed-channel sellers).
• Manual card entry is expensive: PayPal’s UK pricing lists manual card entry at 3.4% + £0.20, which can make keyed payments disproportionately costly for phone orders or “card not present” transactions.
• Upgrading to an all-in-one terminal costs more upfront: Zettle’s PayPal Terminal is marketed from £149 excluding VAT, so the “cheapest hardware” usually applies to the more simplistic PayPal Reader offer rather than full EPOS terminals.

When may Zettle not be the cheapest fit?

Zettle is often not the cheapest overall if you take lots of remote payments (2.5% where available), rely on manual card entry (3.4% + £0.20), or you need a provider with a consistently available payment-link stack for new accounts.

Best alternatives to Zettle

• takepayments or Revolut – for lower transaction fees: Zettle’s transaction fees may be higher than some bespoke providers, like takepayments or Revolut, especially for businesses with high transaction volumes of domestic payments via non-business entities.
• Revolut – for seamless third-party integrations: Despite offering over 21 third-party integrations, some users report that these do not always work smoothly with Zettle’s POS app, particularly with accounting software like QuickBooks. We’ve not heard of any issues with Revolut’s comprehensive integration options, but your mileage may vary depending on your integration of choice.

4. takepayments: Custom Pricing Packages

• Transaction fees: Variable in person; £0.10 online
• Card machines: From £25 + VAT per month
• Contract: 12 months minimum

What makes takepayments a low-cost way to take card payments?

Quote-based (negotiable) pricing rather than a single published rate: takepayments positions its pricing as tailored to your business and payment setup, which can make it cheaper than flat-rate providers if your volumes, card mix and average transaction values justify a lower negotiated percentage.

Next-day settlement for faster cash flows: takepayments markets next-day settlement on key product pages, which can help UK SMEs reduce cash-flow strain compared with slower payout cycles (especially when working capital borrowing is expensive).

High-quality terminal hire and standard benchmarks: takepayments advertises “£25 + VAT per month” for terminal hire with software functionality and a SIM included. Better yet, we found it to be one of the highest-quality card machines for small businesses on the market.

• That sets a clear baseline for your 12-month total cost of ownership (TCO) versus buy-once readers from providers like Revolut or Zettle.

12-month contract is the default for online products: takepayments’ online payments pages advertise a 12-month contract, which can be a good fit for established SMEs who want pricing certainty, but is less flexible than pay-as-you-go alternatives.

Why can this make takepayments cheap in 2026?

takepayments can win on total cost when (1) your monthly turnover is high enough that a lower negotiated transaction rate outweighs monthly rental, and (2) you want an integrated merchant account, terminals and online tools bundle, rather than stitching together separate providers.

Who’ll get the most value for money with takepayments?

• Businesses with high-volume transactions: takepayments is well-suited for established small businesses, like restaurants, salons, or cafes, that handle a high volume of card transactions each month.
• Businesses after competitive transaction fees: Businesses processing many transactions can benefit from lower fees compared with other options on this page. That’s especially true for domestic payments from non-business cards, where fees range from 0.8% to 1%.
• Teams requiring comprehensive payment tools: takepayments offers a robust set of tools, including an online payment gateway and virtual terminal, available for up to £19 per month.

What may cost extra with takepayments?

• Minimum monthly service charges can apply in merchant-account setups: takepayments notes that some merchants may face a minimum monthly service charge if transaction activity is below a threshold, and that this type of charge is applied by the acquiring bank (so it is quote-dependent, not universal).
• PCI compliance support may not be free: takepayments promotes PCI compliance as a guided service with a “one off payment” to get compliant, which means PCI-related costs should be itemised in your quote, rather than assumed to be £0.
• Online and remote payment tools are priced by quote and can change with notice: takepayments’ online payments terms define fees as agreed and allow for amendments with prior notice, so your “cheap” deal depends on what is written into your contract and schedule of fees.

When may takepayments not be the cheapest fit?

Low or irregular card volume often favours no-contract providers. If you process only occasional card payments, a buy-once reader with no monthly rental (e.g., Revolut or Zettle-style pricing models) can be cheaper than paying 12 months of terminal hire.

If your priority is a predictable, clearly-published, flat-rate menu across channels (in-person, online and by phone), a bank-backed flat-rate provider like Tyl may be simpler to budget for than a quote-based merchant account.

Best alternatives to takepayments

• All competitors on this list – for invoicing features: Unlike some competitors, takepayments does not include an invoicing tool, which may be a drawback for some businesses. All the other options on this page support this feature.
• Zettle or Revolut – for low turnover rates: Due to high monthly fees, takepayments is not recommended for businesses with a turnover under £2,000 per month. We reckon Zettle is the best choice here, followed by Revolut.
• Zettle – easier setup: takepayments’ pricing structure can be unclear, and the lengthy PCI compliance process (potentially involving 300 self-assessment questions) may not appeal to those seeking a quick setup. In comparison, Zettle offers the simplest and fastest setup experience we’ve had.

Merchant Service Fees and Hidden Charges Explained

Here’s a list of common fees and charges associated with taking payments through a merchant service provider, as well as factors that affect pricing:

• Transaction fees: Some providers charged fixed transaction fees, while others offer custom transaction fees based on annual card turnover. Fees can vary depending on the type of card (personal versus business, UK versus international) and whether the payment is being processed in-person or remotely (online or keyed-in transactions are usually subject to high fees).
• Card machine costs: Some providers let you purchase card machines outright for a one-off fee, while others charge monthly rental fees. Typically, contract-based providers charge rental fees while zero-contract providers charge upfront.
• Monthly account charges: Some providers will charge a monthly account fee, which covers the cost of maintaining a merchant account with them. Typically, monthly account fees are only charged to businesses with a high card turnover that are on a contract.
• PCI compliance fees: Some providers charge an extra monthly fee for businesses to remain PCI compliant, while others include this service free of charge. This is one of the most common hidden fees of payment processing, so be sure to check this with providers.
• Fees for extra services: If you’re taking payments through other channels, such as online, through an invoicing tool or over the phone, you might have to pay an additional monthly fee for this service. That said, a few zero-contract providers, such as Square, don’t charge extra for these services.

Certain costs, like PCI compliance, chargeback, and refund fees, are less visible than standard transaction fees. We’ve rounded up how these lesser-known costs compare by provider, to help you avoid unexpected charges.

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What Is the Cheapest Card Reader for Each Provider?

This table compares the cheapest card payment hardware option shown on this page for each provider, focusing on practical specs that affect day-to-day cost and usability (power, receipts, and connectivity).

Hardware pricing and availability can change via promos or negotiated quotes. This table uses the “cheapest device” positioning used on your page, so readers can compare like-for-like.

Buying Guide: How To Choose a Cheap Payment Service Provider

The cheapest provider usually comes down to four things: transaction fees, monthly costs, contract terms, and how quickly you get paid. Use the checks below to compare like-for-like.

1) Check and compare transaction fees

• Flat-rate fees (fixed): you pay the same percentage (and sometimes a fixed pence amount) on every card payment. Often suits smaller businesses with lower sales volumes, because costs stay predictable.
• Variable fees (card-type based): the rate changes depending on the customer’s card type. These are often sold as negotiable. In practice, you’re negotiating the provider’s margin because card network fees (e.g. Visa/Mastercard) are set by the networks. Often suits higher-volume merchants, because the blended rate can work out lower.

If you need a deeper breakdown of how these fees work, link out to your in-depth card processing fees guide.

2) Compare pricing tiers and what’s included

Look beyond the headline fee and price the full setup you need in practice:

• Card machines/terminals
• EPOS apps
• Payment gateways (online checkout)
• Virtual terminals (phone payments)
• Payment links/invoicing

Keep it lean:

• If you don’t take online payments, avoid providers that charge monthly for a gateway you won’t use.
• If online tools are included at no extra monthly cost (for example, with providers like Zettle), it can be worth having even if you’ll only use it later.

3) Be mindful of contract lengths

It’s important to think ahead before getting into a long-term contract with a payment service provider, since many providers, including takepayments, 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 patterns or goes through ups and downs, it’s probably better to go with a no-contract provider.

4) Choose providers with quick fund transfer times

If your business relies on a quick flow of funds, you’ll want to choose a payment service 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. Let’s take a look at how long the options on this page take, according to our research.

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 are more limited.

6) Prioritise 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.

7) Consider platforms with strong reporting tools

Providers that operate on a monthly subscription model, such as takepayments, 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 where they sell.

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.

8) Check which payment systems are easiest to set up

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 they tend 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.

9) Assess help and support options

In an ideal scenario, you shouldn’t have any issues with your payment provider’s services. But things do inevitably go wrong sometimes, so the level of support provided by each provider should be front and centre of your decision-making process.

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 Tested and Ranked the Cheapest Ways To Take Payments

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