Setting up a card reader used to mean filling in a merchant account application, waiting for approval, and booking an engineer visit. That world still exists for contracted terminal providers — but most small businesses don’t need to go anywhere near it. With modern card readers from Square, SumUp, myPOS, or Zettle, the whole process takes less than an afternoon.
This guide covers what you need to decide before you start, how to register with a provider, what the setup involves, and what to check before you take your first payment.
Before you start: three decisions to make
Getting these right upfront saves backtracking later.
Which provider? The choice affects your transaction rate, settlement speed, app capability, and what hardware you’re buying. If you haven’t already worked this out, see our [how to choose a card reader →] and [best card readers for small businesses →] guides. For most new businesses, Square or SumUp are sensible defaults — no contract, low upfront cost, no commitment if it doesn’t work out.
Which hardware? A Bluetooth reader (£19–£29) paired to your phone is the right starting point for most businesses. A standalone terminal (£79–£149) is better if you need independence from your phone or plan to use it for continuous high-volume transactions. The provider’s website will show the options.
Which bank account? You need somewhere for the money to land. Most providers (Square, SumUp, Zettle, myPOS) pay out to a personal bank account — you don’t need a business account to start. However, keeping business and personal money separate is a good habit from day one. Tide, Starling, and Monzo all offer free business accounts that work well alongside card readers.
Step 1: Sign up with your chosen provider
For aggregator providers (Square, SumUp, Zettle, Barclaycard Smartpay Anywhere, myPOS), sign-up is done entirely online or in-app. You’ll need:
- Your name, address, date of birth
- Business name (or your own name if you’re a sole trader trading under your own name)
- Business type and brief description of what you sell
- Bank account sort code and account number for settlements
- Email address and phone number
You may be asked to verify your identity with a photo ID (passport or driving licence) and possibly a selfie. This is standard anti-money-laundering due diligence, required by UK financial regulations. Most providers process this instantly or within a few minutes using automated checks.
You won’t need a business registration number unless you’re a limited company (in which case you’ll need your Companies House number). Sole traders and partnerships can sign up as individuals.
Step 2: Order the hardware
Once your account is approved, order your reader directly through the provider’s website or app. Delivery is typically one to three business days. Some providers (Square, SumUp) offer next-day delivery.
If you need to take payments immediately and can’t wait for delivery, some providers support Tap to Pay on iPhone or Android — meaning your phone itself becomes the card reader. Square launched this for UK merchants in 2026. The transaction fee is the same as using a physical reader.
Step 3: Download the app and connect the reader
Every modern Bluetooth card reader works through a companion app. Download it on your phone before the reader arrives so you’re ready to pair straight away.
Square Point of Sale, SumUp POS, PayPal POS (Zettle), and Barclaycard Smartpay Anywhere are all free and available on iOS and Android. Sign in with the account you created in Step 1.
When the reader arrives, charge it fully before pairing. Pairing is usually Bluetooth: open the app, follow the pairing prompt, hold the reader in range. Most pair in under a minute.
For standalone terminals (SumUp Solo, myPOS Go 2), the device connects independently via its own SIM card or WiFi — no Bluetooth pairing needed. Follow the on-screen setup instructions on the device itself.
Step 4: Set up your account properly before trading
Don’t skip this step. Before your first real payment:
Add your products or services (optional but useful). Most apps let you create an item catalogue with prices. You tap the item rather than manually entering the amount — faster, less error-prone, and better for your sales reports. Even if you sell dozens of different things, setting up your most common items takes ten minutes.
Set your settlement bank details. Double-check the account number and sort code are correct. Wrong bank details mean your money goes nowhere useful. Some providers take one to three business days to verify new accounts.
Configure tipping if relevant. If you take tips — hospitality, salons, mobile services — enable tipping in the app settings before you go live. Some apps have it on by default; others require you to turn it on. Test it before a real customer is standing in front of you.
Set up staff accounts if you have employees. Square and SumUp both support staff PINs or individual logins, so you can track which staff member processed which sale. Worth doing before your first busy day, not after.
Step 5: Run a test transaction
Before taking any real payments, run a test. Most providers let you process a small real transaction (even 1p) to confirm everything is working. Do this:
- Check the transaction appears in your app dashboard
- Check the amount looks correct
- Confirm a receipt can be sent (by email or SMS)
- Verify the bank account receives the funds (this takes one to three business days, so do it before you need to rely on it)
If you have staff, test with them present so they know what a successful transaction looks like and what to do if one fails.
Step 6: Taking your first real payment
When a customer is ready to pay:
- Enter the amount (or select items from your catalogue)
- Show the customer the screen to confirm the total
- They tap, insert, or wave their card or phone
- The reader beeps or shows a green confirmation
- Offer a receipt (digital by SMS or email, or printed if your hardware supports it)
The whole thing takes around three seconds for contactless. Chip and PIN takes a few seconds longer while the customer enters their PIN.
If a payment is declined, the reader shows a failure message. Try again, suggest chip and PIN if they used contactless, or ask them to contact their bank. You can’t override a decline.
After setup: things to check in your first week
Settlement timing: check when money arrives in your bank account versus when the transactions were processed. Most providers settle next day or within one to two business days. If you’re not seeing it, check the bank details are correct and verify there are no account holds.
Transaction reports: spend a few minutes in the app after your first trading period. Most apps show a daily summary, transactions by item, and any refunds. Knowing where to find this saves stress later.
Data exports: if you use accounting software (Xero, QuickBooks, FreeAgent), most card reader apps integrate directly. Set up the connection early rather than doing a manual import at the end of the tax year.
If something goes wrong: providers have help centres, in-app chat, and (for some) phone support. The most common early issues are Bluetooth connectivity (restart both devices and re-pair) and account verification holds (respond promptly to any email requests). Most problems resolve the same day.
How long does it take overall?
Registering: 10–20 minutes Identity verification: instant to 1 hour (automated) Hardware delivery: 1–3 business days Initial setup and app configuration: 20–30 minutes First test transaction: under 5 minutes
You can realistically go from “I’ve decided I want a card reader” to “I’m taking real payments” within three business days. If you use Tap to Pay on your phone, the hardware delay disappears entirely.
See our best card readers for small businesses if you haven’t chosen a provider yet, or our merchant account guide if you’re unsure whether you need a dedicated merchant account.
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