How do business card machines work?
Key takeaways
Card machines enable card and contactless payments by securely connecting your business to banking networks
Most terminals support debit cards, credit cards, and mobile wallets as standard
Charges, payout times, and contract terms differ between providers
There are card machine options designed for fixed premises, mobile work, and growing businesses
What is a card machine?
A card machine is a payment device that lets customers pay by debit or credit card, contactless card or mobile wallet.
They’re commonly used by shops, cafés, pubs, and restaurants, as well as mobile businesses such as market traders, taxi drivers, plumbers, and food van operators, helping them take payments without relying on cash.
How does a card machine work?
When a customer chooses to pay by card or contactless:
The card, phone or wearable is tapped, inserted or swiped
The terminal securely sends the payment details for verification
The customer’s bank checks whether the funds are available
The transaction is accepted or declined almost instantly
Approved payments are later paid into your business account
From the customer’s point of view, the process is quick and hassle-free.
What are the different types of card machines?
Countertop card machines
Designed to stay in one place and connect via wifi or phone line. These are suited to shops, cafés, and businesses with a fixed checkout.
Portable card machines
Work within a limited range using Wi-Fi or Bluetooth. Useful for table service, salons, and businesses that move around their premises. Most portable card machines can also work off 3G and 4G
Mobile card machines
Use a SIM card to connect to mobile networks. These are popular with tradespeople, market traders, and businesses that operate on the go.
Smart card machines
Include touchscreen displays and added features such as sales reports, tipping, and integrations with point-of-sale (POS) systems.
Online Gateways
Online gateways are for businesses that take payments online. This can range from an e-commerce business selling products or a salon taking bookings online.
What are the benefits of using a card machine for my business?
There are several advantages to using a card machine for your business:
Increase your sales
Some customers don't always carry cash, so having a card machine means you won't lose out on any sales.
Improve the customer experience
Many customers prefer to pay by card or contactless, and card machines make your business look more professional and up to date with the latest technology.
Speed up payments
Card payments are typically quicker than handling cash, especially contactless options.
Track income more easily
Digital records make it easier to monitor sales and reconcile accounts.
Improve security
Card machines reduce the need to handle and store cash on site. The money also goes straight into your business account, meaning less trips to the bank with large amounts of money.
How much do card machines cost?
Costs depend on the provider and machine type, but typically include:
Type of machine | Typical cost structure | Monthly cost / price range |
|---|---|---|
Countertop machines | Monthly rental | £10–£25 per month |
Portable machines | Monthly rental | £15–£30 per month |
Mobile card readers | One-time purchase or subscription | £30–£100 (one-time) or subscription-based |
There are generally two ways to get a card machine:
Rental agreements, where you pay a fixed monthly fee
Outright purchase, where you buy the machine upfront
The right option depends on how often you take payments, your budget, and how long you expect to use the terminal.
How to get a card machine for your small business
To start accepting card payments, you’ll usually need to:
Decide which type of card machine fits how you trade
Apply through a payment provider or merchant services company
Share basic business and bank account details
Set up and test your terminal
Many providers can approve applications quickly, allowing you to take payments in a short timeframe.
Frequently asked questions
What types of payments can card machines accept? Most machines accept debit cards, credit cards, contactless payments and mobile wallets such as Apple Pay and Google Pay.
Do I need a business bank account to use a card machine? In most cases, yes. Payments are usually settled into a business account rather than a personal one.
How long does a card payment take to process? Authorisation is instant, but funds typically reach your account within one to three working days.
What’s the difference between a card reader and a card machine? Card readers are usually simpler, mobile devices, while card machines can include more advanced features and fixed terminals.
Can sole traders use card machines? Yes. Many providers offer card machines designed specifically for sole traders and small businesses.
Author
Alan Cairns
Senior Content Editor
Alan helps MoneySuperMarket break down complicated financial topics into plain English, to help you find the right deals. When he’s not writing or editing you might find him cycling the South Downs.
