Most card reader guides lean toward no-monthly-fee options without really explaining the trade-off. The pitch is simple: pay nothing until you actually take a payment, then hand over a percentage of each transaction. No fixed cost, no risk, no commitment.
That’s genuinely the right structure for a lot of small businesses. But it isn’t always the cheapest option, and it’s worth understanding exactly when a monthly fee starts saving money rather than adding to the bill.
How no monthly fee pricing works
With a pay-as-you-go reader, you pay a flat percentage every time a customer taps their card. Square charges 1.75%. SumUp charges 1.69%. Barclaycard Smartpay Anywhere charges 1.6%. myPOS charges 1.1% + 7p per transaction. No other recurring costs.
With a monthly subscription, you pay a fixed amount every month in exchange for a lower transaction rate. SumUp Payments Plus is £19/month and drops the rate to 0.99%. Some contracted providers bundle terminal rental into a monthly fee alongside a negotiated rate.
The crossover is purely mathematical. At some monthly volume, the subscription saves more in transaction costs than it costs to pay. Below that point, pay-as-you-go wins. Above it, the subscription wins.
For SumUp’s Payments Plus, that crossover is around £3,300/month in card sales. Below that, PAYG at 1.69% costs less than £19 + 0.99% combined. Above it, the subscription is cheaper every month. The exact number varies slightly depending on average transaction size.
The best no monthly fee card readers in the UK
Square Reader 2
Cost: £19 + VAT. In-person rate: 1.75%. Settlement: 1–2 business days.
The cheapest entry point for card payments in the UK. You get a compact Bluetooth reader plus Square’s free POS app — item catalogue, inventory tracking, staff accounts, invoicing, appointment booking (Square Appointments), a free online store, and basic CRM. No subscription, no monthly charge, no contract.
The trade-off is that 1.75% is the highest standard rate of the no-contract providers. At £5,000/month in card sales, that’s £87.50 in transaction fees — still cheaper than most subscription plans at that volume, but it erodes as turnover grows.
Best for sole traders, new businesses, and anyone who wants the lowest possible upfront cost with a capable free app.
SumUp Solo Lite
Cost: £25 + VAT. In-person rate: 1.69%. Settlement: Next day by 7am including weekends.
SumUp’s entry reader has a lower transaction rate than Square and genuinely better settlement speed — next day including Saturdays and Sundays, at no extra charge. The Solo Lite pairs with your phone via Bluetooth; customers enter their PIN on the reader itself rather than their own device.
The SumUp app is simpler than Square’s: basic item library, team management, simple reports. That’s a limitation for businesses wanting more, and an asset for those who want less to think about.
SumUp Payments Plus (£19/month) becomes cost-effective above around £3,300/month. The no-fee plan makes clear sense below that threshold.
Best for sole traders and small businesses that mainly take in-person payments and want reliable weekend settlement.
Barclaycard Smartpay Anywhere
Cost: £29 + VAT. In-person rate: 1.6%. Settlement: Next business day (before 7pm).
The lowest flat rate available without a subscription. At 1.6%, Barclaycard saves roughly £1.50 per £1,000 in card sales compared to Square, and about 90p per £1,000 compared to SumUp. Over a year at £5,000/month, that’s around £90 saved versus Square.
The app is basic — payments, transaction history, simple categorisation. No online store, no appointments, no advanced reporting. Customer service reviews are poor. But for a business that processes payments and reconciles them in an accounting package, the numbers work.
Best for established businesses with consistent in-person volume who care about the per-transaction rate and don’t need a capable POS app.
myPOS Go 2
Cost: £29. In-person rate: 1.1% + 7p. Settlement: Instant to myPOS Visa account.
A standalone 4G terminal that doesn’t need your phone. Instant settlement into a built-in Visa account that you can spend from immediately. The rate is the lowest of any no-monthly-fee provider for mid-to-high-value transactions: on a £100 transaction you’re paying £1.17 versus SumUp’s £1.69.
The 7p fixed element per transaction makes it proportionally more expensive for very small sales (under about £10). For trades businesses, mobile services, or anyone with average transactions above £30–50, it’s the cheapest no-contract option on the market.
Best for market traders, tradespeople, mobile workers, and anyone with higher-value transactions who needs a standalone device with 4G connectivity.
Zettle Reader 2 (Paypal POS)
Cost: £29 + VAT (first reader); £69 + VAT (additional). In-person rate: 1.75%. Settlement: Within minutes to PayPal account; 1–2 days to bank.
Same per-transaction rate as Square, more expensive for additional readers, but with near-instant settlement to PayPal and up to £250/month in chargeback protection. No contract, hardware owned outright.
Useful primarily if your business already uses PayPal extensively — for eBay sales, Etsy with PayPal checkout, or a customer base that pays via PayPal online. If not, Square is the stronger option at the same price.
When does a monthly fee actually make sense?
Above around £2,500–3,500/month in card revenue, depending on the provider.
At £3,300/month, SumUp PAYG (1.69%) costs £55.77/month in transaction fees. SumUp Payments Plus (£19/month + 0.99%) costs £51.67/month. The subscription saves about £4/month — not dramatic, but it adds up.
At £5,000/month: PAYG costs £84.50 versus Payments Plus at £68.50. Saving: £16/month, £192/year.
At £10,000/month: PAYG costs £169 versus £118. Saving: £51/month, £612/year.
For contracted providers like Worldpay or Dojo with negotiated rates sometimes under 1%, the maths improve further at high volume — but these come with 12–18 month contracts and exit fees.
Seasonal businesses deserve a separate mention
No monthly fee readers have an advantage the maths don’t fully capture: they cost nothing in quiet months.
A market trader who operates May to October, a Christmas gift business, a summer-festival food seller — all of these would pay a monthly fee through winter even if they take zero card payments. On a pay-as-you-go reader, quiet months cost nothing beyond the one-time hardware purchase. If your trade is seasonal or significantly variable, pay-as-you-go is almost always the right structure regardless of peak-month volume.
Our pick
For most UK small businesses, especially those starting out or with variable income: start with SumUp Solo Lite (£25 + VAT, 1.69%, next-day settlement including weekends) or Square Reader 2 (£19 + VAT, 1.75%, better app). Both cost nothing monthly until you’re ready to reassess.
Once card turnover consistently exceeds £3,000–3,500/month, run the numbers on a subscription plan.
See our best card readers for small businesses and our guide to card reader fees for more.
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