Card readers and in-person payments for sole traders

If you’re self-employed and working face-to-face with customers – maybe at markets, in their homes, or anywhere else- you need to make it as simple as possible for them to pay you.

For customer-facing businesses, one of the most useful tools for payments is a mobile card reader, also known as an mPOS device.

The machines have become extremely popular over the past few years, and it’s inexpensive and simple to get started – without any stressful long-term commitments.

In this guide, we explain how card readers work, which small businesses use them, how much they cost, and things to look out for when you compare providers.

What is a card reader?

A mobile card reader is a small device that connects to your phone via Bluetooth. It pairs with an app, usually from the same company, and lets you process card payments wherever you are.

Most also accept contactless and mobile wallet payments, such as Apple Pay and Google Pay.

Unlike old-school card terminals, you don’t need a merchant account or to be tied to a long-term contract.

You buy the reader, install the app, and you’re ready to go. The fees are usually just a cut from each payment you take.

Do you need a merchant account to take card payments?

You might see the term merchant account mentioned when you’re researching card payments. It sounds like something you need to set up, but for most sole traders, it’s not something you ever deal with directly.

A merchant account is a technical holding account used during card payments.

When a customer pays by card, the money is authorised and checked, held briefly, and then passed on to your bank account. That holding stage is what people mean by a merchant account.

With modern card readers and payment apps, this all happens in the background. Providers like SumUp, Zettle, and Square include a merchant account as part of the service, so there’s nothing extra for you to apply for or manage.

You normally only need to think about opening your own merchant account if you’re processing high volumes of card payments and want to negotiate lower fees with a traditional payment provider.

For most sole traders, especially those working face-to-face with customers, the all-in-one setup is simpler and does the same job.

Do you need one as a sole trader?

If you invoice your clients and get paid via bank transfer, you probably don’t need a card reader at all.

They are aimed at customer-facing businesses – where you get paid after performing a service or selling a product.

Here are some examples:

• Tradespeople (plumbers, gardeners, electricians)
• Market stallholders
• Mobile hairdressers or therapists
• Street food vendors
• Freelancers selling at fairs or pop-ups

These days, most customers expect to be able to tap and pay straight away. And there’s no need to deal with cash.

A few popular options in the UK

Here are some of the most commonly used card readers for small businesses and sole traders (fees correct as of November 2025).

• SumUp – simple, affordable, and charges 1.69% per transaction. Devices start from around £29.
• Zettle by PayPal – a good choice for market-style setups, with a flat 1.75% fee.
• Square – strong app features, free POS tools, and a 1.75% fee.
• Revolut Reader – a fast-growing option, especially if you already bank with them. Fees range from 0.8% to 1.6%, depending on your plan.

You don’t need to sign a monthly contract; you simply pay for the device, and you’re charged a fee per transaction.

How does the money reach your bank?

When someone pays you with the card reader, the money first arrives in your provider’s app wallet. From there, it’s sent to your linked bank account, normally within one or two working days.

You can use a personal account, but as we say so often on ByteStart, it is always easier to track everything if you connect a business bank account. It is a good idea to separate your personal and business transactions.

What do you need to do before you’re up and running?

Here are the typical steps to get started. You should be able to accept payments within 24 hours.

• Order the card reader – either directly from the provider’s website or via their app.
• Download the companion app – on your phone or tablet and create an account.
• Verify your identity – this usually means uploading photo ID and confirming basic business details.
• Confirm your tax status – some providers ask for your UTR or confirmation that you are self-employed, mainly for regulatory checks.
• Link a bank account where your takings will be paid. This can be a personal account, but a business account makes life much easier.
• Pair your phone with the reader via Bluetooth and run a test payment.

How much do card readers cost?

Most card payment providers have a simple payment policy.

There are two things to pay for.

• The device itself – typically £20 to £50 as a one-off cost, depending on the model.
• A transaction fee – usually around 1.5% to 2% of each card payment you take. This is deducted automatically before the money is sent to your bank account.

There are normally no monthly fees and no long-term contracts. Some providers offer optional paid plans with extras such as faster payouts, invoicing tools, or staff features, but these are not required to get started.

For many customer-facing businesses, the trade-off is straightforward: you pay a small percentage per payment in exchange for faster, easier sales and fewer awkward conversations about cash.

Are card readers secure?

Yes — the main providers use end-to-end encryption and comply with PCI-DSS. The app doesn’t store any card details, and customers can see the payment on their bank statements right away.

For more on card payment security and contactless safety:

• UK Finance – Contactless Payments overview — explains contactless limits, fraud prevention and tech basics.
• Which? – Are contactless cards safe? — covers security, limits, PIN prompts and fraud stats.
• GOV.UK – Invoicing and taking payment from customers — includes guidance on secure payment practices and what must be on an invoice.
• PCI Security Standards Council – Merchant Resources — outlines global security standards for card data safety.

Pros and cons of using a card reader

Pros	Cons
Fast to set up, easy to use	Each payment costs a % fee
Great for in-person payments	Needs your phone and signal
No monthly cost or contract	Cannot be used offline
Looks more professional than asking for cash	Another app and account to manage

What other payment methods can you use?

If you don’t need or don’t want to use a card reader, there are plenty of other ways to get paid.

• Bank transfers (make sure you include your bank details on your invoices)
• Online payment links (some card apps offer these)
• Direct debit platforms like GoCardless for repeat clients