Most businesses that switch card reader providers have been thinking about it for months before they actually do anything. High fees, poor support, a reader that keeps dropping connection — the reason is usually obvious. What holds people back is the fear of disruption: a day without payments, money going to the wrong account, customers having a bad experience during the changeover.
In practice, switching is much less disruptive than it sounds. For no-contract providers like Square and SumUp, you can be live on a new system within a few days while the old one is still working alongside it. For contracted providers, there’s more to manage — but even that is a defined process.
Before you do anything: check your current contract
The biggest variable in any switch is whether your existing provider has a contract. If you’re with a no-contract provider (Square, SumUp, Zettle, Barclaycard Smartpay Anywhere, myPOS), there’s nothing to check. You can stop using them the moment your new reader is set up.
If you’re with a contracted provider (Worldpay, Dojo, Takepayments, Tyl by NatWest), open your agreement and note:
- The contract end date
- The notice period required to terminate (typically 30–90 days before the end date)
- The early termination fee if you leave before the contract ends
Missing the notice window is the most common mistake. Some contracts auto-renew if you don’t give notice by a specific date, trapping you for another full term. If you’re within six months of your end date, it’s often worth waiting rather than paying an exit fee. If you’re mid-contract and the fee is substantial, calculate whether the monthly savings with a new provider would offset it over the remainder of the term.
Step 1: Choose your new provider
Switching is only worthwhile if the new provider is actually better for your business — lower fees, better settlement, more capable software, or simply better support. Don’t switch on a whim or because a comparison site is offering a cashback incentive.
The key questions before committing:
- Is the transaction rate lower, and by how much at your actual monthly volume?
- Is there a contract, and do you want that commitment?
- Does the hardware work for how you take payments (Bluetooth vs standalone, indoor vs outdoor)?
- Does the app do what you need (inventory, tipping, staff accounts, accounting integration)?
See our [how to choose a card reader →] and [best card readers for small businesses →] for a structured comparison.
Step 2: Sign up and order hardware before cancelling anything
This is the most important rule of switching: don’t cancel your existing setup until your new one is working.
Sign up with your new provider and order the hardware. While you’re waiting for it to arrive, your existing system keeps running. Most no-contract providers approve accounts the same day and deliver hardware within one to three business days.
When the new reader arrives:
- Set it up and run test transactions
- Confirm settlement is going to the correct bank account
- Get any staff familiar with the new app and process
Only once you’re confident the new system works reliably should you give notice to your old provider or simply stop using their hardware.
Step 3: Manage the transition period
For most no-contract switches, running both systems for two to three days is a sensible precaution. If the new reader has an issue, you haven’t left yourself without any payment method.
If you have a contracted terminal that needs returning, the provider will tell you when to send it back. Don’t send hardware back before you have confirmation in writing of cancellation — keep proof of return (courier receipt, photos) because hardware disputes are a common source of post-cancellation billing issues.
Step 4: Update bank details and integrations
Before your new provider settles its first real payment, confirm:
- Settlement is going to the correct bank account — double-check the sort code and account number
- Any accounting software integration is updated (disconnect the old provider’s integration, connect the new one)
- If you use a till system or EPOS that connected to your old reader, update or replace that integration
- If you have recurring payment setups or stored card details for regular customers, these cannot be transferred between providers. Customers with recurring payments will need to re-enter their card details under the new system.
The recurring payment point catches some businesses off guard — particularly subscription businesses, membership clubs, and any service that bills customers on a schedule. Plan communication to those customers well in advance.
Step 5: Give formal notice to your old provider
For no-contract providers, there’s nothing formal to do. Close the account via the app or their website, or simply stop using it. Confirm any outstanding settlement has cleared before closing.
For contracted providers, give written notice by whatever channel the contract specifies — usually by letter or secure message through their portal, not just a phone call. Keep a copy. Confirm the end date, return process for hardware (if rented), and any final settlement amounts in writing.
Will your customers notice?
Almost never. Customers tap their card, the screen shows approved, they go about their day. The provider is invisible to them. The only situations where customers notice a switch are:
- If stored card details need re-entering for recurring payments (communicate this in advance)
- If your new hardware looks noticeably different (irrelevant to payment experience)
- If there’s a brief period where you have no working payment method at all (avoid this by keeping the old system running until the new one is confirmed working)
Common mistakes to avoid
Cancelling the old system before the new one works. Even one day without payment capability during a busy period costs more than the few days’ extra cost of running both.
Missing the notice window on a contract. Set a reminder three to four months before your contract end date, not one month.
Not testing settlement before going live. A wrong digit in your bank account number means money goes nowhere useful. Test with a small transaction and confirm receipt before relying on the new system.
Assuming software integrations transfer automatically. Accounting sync, EPOS connections, and reporting tools need to be manually updated when you switch providers.
Forgetting about VAT records. Your transaction history lives with your old provider. Before closing the account, export any records you need for VAT returns or HMRC compliance for the current and previous tax year.
Is it worth the effort?
Usually yes, if the fee saving is meaningful at your volume and you’re not mid-contract with a punishing exit fee.
At £5,000/month in card sales, the difference between Square (1.75%) and SumUp Payments Plus (£19/month + 0.99%) is around £200/year. Between Worldpay Simplicity (1.5% + £17.50/month) and SumUp Plus, it’s closer to £150/year in SumUp’s favour. These savings are real but not dramatic.
At £20,000/month, the maths become more significant and switching from a high-rate flat-fee provider to a negotiated contract can save over £1,000/year.
If you’re switching primarily for support or reliability reasons rather than cost, those benefits are harder to quantify but often worth more over time.
See our card reader fees guide to calculate what you’d save with your actual volume, or our best card readers for small businesses to identify the strongest alternatives.
GoSmallBusiness is reader-supported. We may earn a commission if you sign up through links in this article, at no extra cost to you.
