A card reader contract locks you in, often for 12 months of longer. For example, an 18-month agreement with Worldpay or a 12-month deal with Takepayments means you’re paying regardless of whether your business grows, stalls, changes direction, or decides card payments aren’t worth the effort.
For a new business, or any business that isn’t certain of its payment volumes, that’s a meaningful risk to take on. The good news is you don’t have to. Every major no-contract provider in the UK lets you start taking payments the same day, stop whenever you want, and pay nothing when you’re not trading.
What you give up with a contract
It’s worth being direct about why anyone signs a contract at all. The trade is usually this: lock in for 12–18 months and get a lower transaction rate, sometimes with free or subsidised hardware included.
Worldpay’s contracted Simplicity plan offers 1.5% per transaction, but that rate only applies because you’ve committed to 18 months and a monthly terminal rental of around £17.50. Dojo’s contracted rates start from 1.4% + 5p in exchange for a monthly fee and a 12-month agreement.
If your monthly card volume will stay above £5,000–10,000 consistently, those lower rates save real money. If you’re not confident of that — or if your business is seasonal, new, or likely to change — the flexibility of no-contract is usually worth the slightly higher per-transaction rate.
The best no-contract card readers in the UK
1. Square Reader 2
Hardware: £19 + VAT, owned outright. Transaction fee: 1.75% in-person. No contract.
The most accessible no-contract option. Buy the reader, download the app, start accepting card payments. Stop at any time — there’s nothing to cancel.
Beyond payments, Square’s free app includes a product catalogue, inventory management, staff accounts, appointment booking, a free online store, invoicing, and basic CRM. All of this with no monthly fee and no contract. It’s a complete business toolkit dressed as a card reader.
The 1.75% transaction rate is the highest of the no-contract providers. At £10,000/month in card sales, that’s £175 in fees. Competitive at lower volumes; the rate starts to matter as volume grows.
Settlement: one to two business days standard, or instant for a 1.5% additional fee.
2. SumUp Solo
Hardware: £25 + VAT, owned outright. Transaction fee: 1.69% in-person. No contract.
SumUp’s entry reader has the second-lowest standard rate of the no-contract providers, with next-day settlement including weekends at no extra cost. Simple app, quick setup.
The SumUp Solo (£79 + VAT) is the standalone version with its own 4G SIM, worth considering for businesses that don’t want phone dependency.
SumUp Payments Plus (£19/month) drops the rate to 0.99% once volume justifies it. Crucially, this is an optional subscription layered on top of the no-contract hardware. You can cancel the subscription without losing the reader or your account.
3. myPOS Go 2
Hardware: £29, owned outright. Transaction fee: 1.1% + 7p. No contract. Standalone 4G SIM, no phone needed.
myPOS doesn’t need your phone at all. It has its own 4G SIM that roams across mobile networks, making it the most reliable no-contract option for outdoor use, markets, events, and rural or variable-signal locations.
Settlement is instant into a built-in Visa account, which you can spend from straight away or transfer to your main bank account. The fee structure makes it cheapest for transactions above roughly £10, and most cost-effective for higher-value transactions.
4. Barclaycard Smartpay Anywhere
Hardware: £29 + VAT, owned outright. Transaction fee: 1.6%. No contract.
The lowest flat rate available without a contract. If per-transaction rate is your priority and you don’t need a capable POS app, Barclaycard has a real cost advantage over Square and SumUp at any volume.
No monthly fee, no exit fee, next-day settlement (before 7pm). Backed by Barclays with 24/7 phone support availability, though customer service reviews are consistently poor.
5. PayPal Zettle Reader 2
Hardware: £29 + VAT (first reader), owned outright. Transaction fee: 1.75%. No contract.
Same transaction rate as Square, but with near-instant settlement to a PayPal account and up to £250/month in chargeback protection. No contract, hardware owned outright.
Useful if your business already uses PayPal extensively — for eBay sales, Etsy with PayPal checkout, or a customer base that pays via PayPal. If not, Square is generally the stronger option at the same price.
What about “free” contract-free terminals?
Some providers advertise free card machines with no upfront cost. These usually fall into one of two categories.
Pay-as-you-go with higher rates: the reader is free but the transaction rate is higher to compensate. You’re effectively paying for the hardware through fees over time.
Contract required despite the “free” hardware: the terminal is provided at no upfront cost, but you’re signing a 12–18 month agreement. The hardware isn’t actually free — you’re committing to a rental or contract term to get it.
Read the small print. “Free card reader” and “no contract” don’t always go together.
The quiet-month advantage
Monthly fee contracts charge you whether or not you trade. That’s a real cost for seasonal businesses — Christmas traders, summer-festival sellers, market-season operators — and for new businesses that don’t yet know their payment volumes.
With a no-contract, pay-as-you-go reader, a month where you take zero card payments costs you nothing beyond the one-time hardware purchase. No contracted arrangement can offer that.
When does signing a contract make sense?
If your monthly card turnover is consistently above £5,000–10,000 and you’re confident that won’t change, a contracted arrangement with negotiated rates can save money. Dojo, Worldpay, and Takepayments all offer lower rates in exchange for commitment.
At £10,000/month with Square (1.75%), you’re paying £175/month in transaction fees. Dojo’s contracted rate of around 1.4% + 5p costs roughly £145/month. Subtract the monthly rental fee (~£20–30/month) and the net saving is roughly breakeven or slightly ahead. At £20,000/month the maths improve, and above that level negotiating a custom rate makes clear financial sense.
For anything below those volumes, no-contract providers are usually cheaper once the monthly rental or service fee is factored in.
Making the choice
For almost all small businesses and anyone starting out: Square Reader 2 (£19 + VAT) or SumUp Solo Lite (£25 + VAT). Both are no-contract, no monthly fee, and have enough software capability to grow with most businesses.
For outdoor traders and mobile workers who need 4G independence: myPOS Go 2 (£29) is the best no-contract standalone option.
See our best card readers for small businesses, our no monthly fee card readers guide, and our card reader fees guide for the full picture.
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