Most card reader guides are written for businesses with a counter, a till, and a regular flow of customers. Sole traders have a different setup. You might invoice most clients but want a card option for the occasional face-to-face job. Or you’re self-employed and meeting clients at their homes. Or you’re a freelancer who rarely takes in-person payments but needs a fallback when someone doesn’t want to do a bank transfer.
The barriers are lower than they used to be. No business bank account needed. No merchant account. No contract. You can start taking card payments as a sole trader today, for less than £30.
Do you need a business bank account to get a card reader?
No. Most of the main providers, Square, SumUp, Zettle, myPOS, pay out to a personal bank account. You register as a sole trader during sign-up and provide your sort code and account number.
Some providers prefer a business account, and a few (Tide, notably) require one because the account and reader are tied together. But for the mainstream options, a personal account is fine when you’re starting out.
If you want to keep business money separate from personal — a good habit even if you’re not legally required to — see our guides to business bank accounts for sole traders.
What a sole trader actually needs from a card reader
No monthly fee. Your card income will vary, especially early on. A pay-as-you-go reader with no fixed costs means you’re not paying anything in a quiet month.
No contract. You don’t want to be tied into 12 or 18 months with a provider when you’re still working out whether card payments are worth the effort.
Simple setup. Most app-based readers take about 30 minutes from unboxing to first transaction. That should be enough time.
A decent mobile app. As a sole trader, your phone is your till. The app needs to be reliable and easy to use on the move.
Invoicing is a nice-to-have. If a client doesn’t have their card, being able to send a payment link or invoice from the same app saves you chasing it up later.
The best card readers for sole traders
1. Square Reader 2
Cost: £19 + VAT Transaction fees: 1.75% in person, 2.5% keyed-in Monthly fee: None Settlement: 1–2 business days
Square Reader 2 is the default recommendation, and it earns it. It’s cheap, it works, and the Square app is the most capable of any in this category.
Beyond basic payments, Square lets you create a product catalogue, send invoices, accept tips, set up a simple online booking page and generate basic sales reports — all on the free plan. For a sole trader who wants to look professional without paying a monthly fee, there’s a lot here.
The reader pairs with your phone via Bluetooth. You’ll need a decent signal where you’re working — Square doesn’t have its own SIM, so it depends on your mobile data or WiFi. If that’s a problem, see myPOS below.
Signing up as a sole trader is straightforward, and Square doesn’t require a business bank account.
2. SumUp Air
Cost: £39 (reader only) or £79 (Solo terminal) Transaction fees: 1.69% standard, or 0.99% on SumUp One (£19/month) Settlement: 1–3 business days
SumUp’s standard rate of 1.69% is slightly lower than Square’s 1.75%. On a £50 job that’s a difference of about 3p. Trivial on one transaction, but across a month of consistent card revenue it becomes meaningful.
SumUp One at £19/month and 0.99% is worth running the numbers on once you’re above around £2,000/month in card sales. The subscription saves you money at that level.
The SumUp Solo (£79) is a standalone terminal that doesn’t need your phone — useful if your phone battery is unreliable or you prefer a separate device.
For a full explanation of how to work out which pricing model suits your situation, see our [guide to card reader fees →].
3. Zettle by PayPal
Cost: First reader £29 + VAT Transaction fees: 1.75% Settlement: 1–2 business days
If you use PayPal to receive payments from clients online, Zettle integrates neatly — settlement goes into your PayPal account and is accessible immediately. The reader and app are similar in feel and pricing to Square.
Zettle also lets you send PayPal invoices from within the app, which is useful if your clients already use PayPal and expect it.
For a sole trader who doesn’t use PayPal, there’s no particular reason to choose Zettle over Square. They’re functionally very similar.
4. myPOS Go 2
Cost: £29 Transaction fees: 1.1% + 7p Settlement: Instant (into myPOS Visa account)
The myPOS Go 2 is a standalone device with its own 4G SIM. It doesn’t depend on your phone’s signal, which makes it the most reliable option when you work in variable-connectivity locations — rural jobs, outdoor sites, basement workshops.
The instant settlement into a Visa account is useful if you’re covering costs immediately after a job. You can spend from the account straight away using a myPOS card, or transfer to your main bank account.
The app is more limited than Square’s, but for a sole trader who mainly needs a reliable payment device rather than a full business tool, it does the job at a competitive rate.
Taking card payments without any hardware at all
Payment links: Square, SumUp and Zettle all let you generate a payment link from the app that you send to a client by text or email. They pay on their phone. No reader needed. Transaction fees are slightly higher (usually 2.5%) but for occasional use it’s practical.
Phone tap-to-pay: some providers now support tap-to-pay directly on an NFC-enabled Android phone. Square recently launched this in the UK. The fee is the same as a reader transaction (1.75%). If you take card payments a handful of times a month and don’t want a separate device, it’s worth knowing about.
Virtual terminal: keying in card details manually over the phone. Available through most providers. Higher fees (typically 2.5%) and the card is “card not present”, so slightly more fraud risk. Useful for the occasional phone order.
What about VAT and tax?
Taking card payments doesn’t change your VAT or income tax obligations. Revenue from card transactions is taxable income in the same way as cash or bank transfer income.
If you’re VAT registered, card payment fees — the percentage taken by the provider — are a legitimate business expense you can deduct. Keep records of monthly fee statements from your provider.
Square and SumUp both integrate with Xero, QuickBooks and FreeAgent, so transactions can sync automatically rather than needing to be entered manually.
Our pick
For most sole traders: Square Reader 2 at £19 + VAT. No contract, no monthly fee, a capable app that handles invoices and reports, and enough flexibility to grow with you.
If your work takes you to locations with unreliable mobile signal: myPOS Go 2. The 4G SIM and instant settlement make it worth the slightly different fee structure.
See our best card readers for small businesses or our guide to choosing a card reader for the full picture.
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