What are the cheapest ways for UK businesses to accept card payments?
Key takeaways
Point-of-sale (POS) systems combine payment processing with sales tracking, giving businesses real-time insight into transactions, stock levels, and performance
They can scale as a business grows, allowing features like reporting, staff management, and inventory tracking to be added without replacing the system
Costs and suitability vary by business size and payment volume, with subscription pricing often becoming more cost-effective as card payments increase
What is a POS system and how does it work?
A POS system is the technology a business uses to take payments and record sales at the point a customer checks out.
It combines hardware and software that work together, usually including:
A card reader to take payments
POS software to record and manage transactions
A device such as a tablet, smartphone or touchscreen till to run the system
Unlike traditional cash registers, modern POS systems store sales data digitally. This means you can see transactions in real time, review sales trends, and manage stock levels more efficiently, all from one system.
What types of POS systems are available?
There are three most common types of POS systems:
Mobile POS systems: These run on a smartphone or tablet paired with a card reader. They are often used by sole traders, mobile businesses, and pop-up shops because they are portable, quick to set up, and usually lower cost.
Tablet-based POS systems: Popular in cafés, retail stores, and salons. They balance ease of use with more advanced features, such as stock management and sales reporting.
Fixed POS systems: These are typically used in higher-volume retail or hospitality settings. They are less flexible but can offer more detailed reporting and inventory tools, with higher upfront and ongoing costs.
The right choice usually depends on your business size, budget and how you take payments.
How much does a POS system cost?
Costs usually fall into three areas:
Hardware: such as card readers or tills, which may be bought outright, rented, or included in a monthly plan.
Software: typically charged as a monthly subscription, with some providers offering free plans with limited features.
Transaction fees: paid each time you take a card payment.
Transaction fees are often higher on pay-as-you-go plans and lower on subscription plans. Choosing the right pricing model can make a noticeable difference to overall costs, especially as your sales volume changes.
Pay-as-you-go vs subscription POS pricing
Pay-as-you-go and subscription pricing are the two main ways POS point-of-sale providers charge for their systems.
Pay-as-you-go pricing
There is no monthly fee
Transaction fees are usually higher
It can suit new, seasonal, or lower-turnover businesses
Subscription pricing
There is a monthly fee
Transaction rates are usually lower
Businesses often get access to more advanced features
The cheapest option depends on how often your business takes card payments and the typical value of each sale. As payment volumes increase, subscription pricing can become more cost-effective.
Do small businesses need a POS system?
Not every small business needs a POS system.
If your business only takes occasional card payments and does not manage stock, a basic card machine may be enough.
A POS system is more likely to be suitable if your business:
Takes regular card payments
Sells multiple products or manages stock
Wants clearer insight into sales and performance
Spends time on manual admin or reporting
In these cases, the time savings and improved visibility can outweigh the extra cost, particularly as the business becomes busier.
How to choose the right POS system
When comparing options, it helps to consider:
How payments are taken and the average monthly turnover
Whether a contract is required
What features are included, such as reporting or stock management
How quickly card payments are paid into the business account
The level of customer support available
MoneySuperMarket lets businesses compare POS systems and card machines in one place, making it easier to find an option that suits their size, budget, and payment needs.
Frequently asked questions
Frequently asked questions
What is the cheapest POS system for a small business? Mobile POS systems with pay-as-you-go pricing are often the cheapest way to get started. They usually have no monthly fee, though transaction charges tend to be higher.
Can a business use a POS system without a contract? Yes. Many providers offer rolling monthly plans or pay-as-you-go options with no long-term commitment.
Are POS systems secure? Most reputable POS providers use encryption and follow industry security standards to help protect payment and customer data.
Can POS systems work offline? Some POS systems offer an offline mode. This allows transactions to be stored and processed once an internet connection is restored, though features may be limited while offline.
Author
Collette Shackleton
Content Writer
Collette Shackleton is a highly skilled Content Writer who has over nine years’ experience creating helpful and engaging personal finance content for consumers. Collette shares her experience as a...
