How long does it take to get a business credit card?

Depending on the provider, it could take a few days or a couple of weeks for the business credit card to arrive in the post. Once you submit your application it will need to be reviewed by the card issuer but that is normally approved quickly.

Is my credit record checked for a business credit card?

Yes, when you apply for a business credit card, credit card providers will typically assess both your business's credit record and your company’s overall financial health. If your business has limited or no credit history, the card issuer may also check your personal credit score to evaluate your creditworthiness.

Does using a business credit card affect my personal credit record?

Using a business credit card could affect your personal credit card, particularly if you're the main account holder. It's best to use a business credit card sensibly, as you would a personal credit card, If you're worried about repayments you should speak to the card provider as soon as possible.

Can I get a business credit card with rewards?

Yes, business credit cards with rewards are available. These cards often offer cashback, allowing you to earn a percentage of what you spend back. Other rewards may include air miles, travel points, or shopping vouchers, depending on the card provider. Choose a business credit card with rewards that aligns with your business's spending habits to maximise the benefits.

Can several employees have their own card?

Yes, you can get multiple corporate credit cards under one account, which allows selected employees to have their own cards while the business receives a single bill. Many providers also offer spending controls, so you can set limits and monitor expenses for each card.

Do I need a business current account to apply?

No, a business current account is not a requirement to apply for a business credit card. However, having one can simplify managing your finances, making it easier to pay your bills and keep business transactions separate from personal ones.

Can I get a business credit card as a startup?

Yes, startups can apply for a business credit card, and it can be a useful tool for managing cash flow during the early stages. However, since your business is new, you may be asked to provide additional information to prove your ability to meet repayment requirements. This could include a personal credit check, company financial statements, and details of any assets, which will help the provider determine your credit limit.

Can I check my eligibility before applying for a business credit card?

Many providers let you check your eligibility online before applying. This typically involves a soft credit check, which won’t affect your credit score, and will give you an idea of your chances of approval prior to any application.

Are business credit cards interest-free?

Business credit cards aren’t usually interest-free. However, many providers will offer an interest-free period on purchases if you pay off the balance in full each month. If you carry a balance, interest will apply, so it’s important to check the terms.

Can I get a business current account with bad credit?

Yes, it’s possible to get a business current account even if you have bad credit, though it may be more challenging. Some banks and financial institutions offer business accounts specifically designed for people with poor credit histories. These will sometimes come with fewer features, but can still help you manage your business finances effectively. To improve your chances of being accepted for an account, you can take steps to enhance your credit history, such as paying bills on time, reducing outstanding debt, and regularly checking your credit report for errors.

How long does it take to open a business bank account?

Opening a business bank account typically takes between one and four weeks, though the process can be faster depending on the bank and your business type. Some banks even offer same-day account opening. Factors that can affect the timeline include your business structure (sole traders usually take less time), your relationship with the bank, and the application method. Some banks offer faster services, and non-residents or high-risk businesses may experience longer processing times. Once your application is submitted, the bank will conduct background checks and may contact you for additional information.

Can I use a personal current account for my business transactions?

While it’s technically possible to use a personal current account for business transactions, it’s generally not recommended. Keeping personal and business finances separate helps you stay organised, track expenses more easily, and simplify tax reporting. If you run a limited company, using a business current account is a legal requirement because your company is considered a separate legal entity. Sole traders aren’t legally required to have a business account, but opening one can provide tailored features, such as accounting tools.

What fees can I expect with a business current account?

The fees for a business current account can vary depending on the bank and the account type. Common charges to look out for include: Monthly maintenance fees: A fixed charge for maintaining your account. Transaction fees: Costs for deposits, withdrawals, and payments. Overdraft charges: Fees for accessing overdraft facilities. International transfer fees: Charges for sending or receiving money abroad. Debit card usage fees: Costs for using your business debit card, especially abroad. Some business accounts may offer free banking for an introductory period, so it’s essential to carefully review the fee structure to find an account that matches your business needs and budget.

Are business bank accounts protected by FSCS?

Yes, business bank accounts are protected by the FSCS up to £85,000, provided the bank is FCA or PRA-authorised. For small businesses or limited companies, protection applies if the bank fails. Sole traders have combined protection with personal accounts under one £85,000 limit. For more complex claims, eligibility may vary depending on your business type. Check with your bank for specific coverage details.

Can I have multiple business current accounts?

Yes, you can have multiple business current accounts. This can be useful for managing different aspects of your finances, such as separating operational expenses from tax savings, or tracking revenue for different projects. If you run multiple businesses, separate accounts for each can simplify accounting and financial reporting.

Do I need to maintain a minimum account balance?

Whether you need to maintain a minimum balance depends on the specific business current account you choose. Some banks may require a minimum balance to avoid fees or to access certain account features, while others may be more flexible. Review the account’s terms and conditions or ask your provider directly if you're unsure.

Are there any limitations on the number of transactions or cash deposits I can make?

Many business current accounts have limits on free transactions or cash deposits each month. Exceeding these limits may incur fees. Some accounts also cap the maximum cash deposit per day or month. To avoid extra charges, review the account terms and choose one that suits your transaction volume.

What happens if I close my business?

If you close your business, notify your bank and close your business current account. The bank will guide you through the process, which will typically involve settling any outstanding payments or fees. Any remaining funds can be transferred to a personal account or another business account.

Am I guaranteed an overdraft with a business account?

No, getting an overdraft with a business current account isn’t guaranteed. Just like with personal accounts, you’ll need to pass a credit check to be approved, and the overdraft limit offered will depend on both your financial circumstances, and the bank’s assessment of your business. If you need an overdraft, it’s a good idea to speak directly with your account provider to explore available options and understand the terms, including any fees and interest rates that could apply.

Is my business eligible to use the Current Account Switch Service?

Your business may be eligible to use the Current Account Switch Service if it meets the following criteria: Fewer than 50 employees Annual turnover of £6.5 million or less Both your current and new banks are part of the switch guarantee scheme If you're unsure whether your business qualifies, contact your new bank for confirmation and guidance on the switching process.

Can I have a business current account if I'm a sole trader?

Yes, sole traders can open a business current account, just like partnerships and limited companies. Having a dedicated account is smart as it separates personal and business finances, simplifying income tracking, expenses, and tax management. Many banks offer accounts tailored to sole traders with features like accounting integrations, invoicing tools, and business support, helping you manage cash flow and prepare tax returns more easily.

Can I use my business current account for personal transactions?

Generally, it’s not advisable to use your business current account for personal transactions. Keeping business and personal finances separate helps maintain clear records, avoid tax complications, and ensures compliance with accounting standards. Mixing personal and business expenses can lead to confusion and potential legal issues, especially when it comes to taxes and audits. Additionally, it's worth noting that many banks prohibit the use of business accounts for personal purposes.

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How do card machines work? A step-by-step guide for SMEs

How do card machines work for small businesses?

Written by Kyle Eaton, Contributing writerEdited by Joe Phelan, Business finance editor, 11 April 2025

Fact Checked

Card machines come in various shapes and sizes, but they all serve one core purpose – accepting payments from customers using debit or credit cards.

The type of card machine you need depends on your business.

In the past, businesses could rely on cash or cheque payments. However, accepting card payments is essential nowadays. Without card payments, a business risks losing significant revenue. Card machines may seem intimidating, with different types available and a complex-sounding process, but they’re easy to set up and integrate into day-to-day operations. This step-by-step guide brings you up to speed, so you can use them with confidence.

Key takeaways

Card machines enable small businesses to accept secure card payments, improving customer convenience and boosting sales
The payment process verifies card details, handles the approval process and deposits funds into an account linked to the business
Choosing the right card machine depends on the needs of the business – with countertop, portable or mobile solutions available

What is a card machine?

A card machine is a payment solution that lets businesses, sole traders and freelancers accept payments from customers using credit or debit cards. They come in countertop, portable and mobile options.

People might call them payment terminals, card readers, chip and PIN machines, PDQ machines, contactless readers or credit card machines. Despite the different names, they all serve the same purpose.

Card machines have become essential across all business types, from fixed locations such as restaurants, bars and shops to mobile businesses like street traders and market stalls. Many customers prefer the security and convenience of card payments, making a card machine a must for any business.

How does a card machine work?

Thanks to a straightforward interface, it seems very simple for a card machine to take payments. But there’s more going on behind the scenes. Here’s how it works:

Customer taps or inserts their card – They may use contactless, chip and PIN, or their mobile phone to do this
Card machine reads the card – It securely captures the payment details stored on the card or phone
Transaction details go to the payment provider – The machine sends the card and transaction information for approval
The bank authorises the payment – The customer’s bank checks funds and approves or declines the transaction
Payment confirmation appears – If approved, the machine shows confirmation and prints a receipt if needed
Funds paid to the business account – The card machine provider transfers the money to the linked account, usually within one to three days

What are the different types of card machines?

There are several types of card machines, and the one you need depends on your business. A street food vendor may need a different type of machine from a high street clothes retailer, for example. Here are the most common types of card machine and the features and benefits of each.

Countertop

A countertop card machine stays fixed to a till or counter, making it ideal for businesses with a dedicated checkout, such as shops, hotels and salons. It connects via phone line, broadband or Ethernet cable for stable and secure transactions.

Portable

A portable card machine connects via Bluetooth or Wi-Fi, allowing staff to move freely within a business. It’s ideal in settings where flexibility is important or where customers appreciate not having to walk to a fixed machine. It enables payments away from the counter, such as at tables or other areas. Restaurants, bars, cafés and businesses with a dynamic layout may benefit most from a portable machine.

Mobile

A mobile card machine connects via mobile networks, making it ideal for businesses on the go. It enables secure payments at market stalls, in taxis or for other mobile businesses. This machine benefits businesses without a fixed location, offering convenience and flexibility for both the business and customers.

Smart card reader

Smart card readers are app-based devices that connect to a smartphone or tablet, offering a cost-effective solution for small businesses. These compact devices enable secure payments anywhere the business operates. They benefit businesses that need flexibility, such as freelancers, consultants and small retailers, by allowing payment processing without bulky hardware.

How much do card machines cost?

Card payment machines vary in price quite substantially. Here are some cost ranges for the most common types:

Countertop machines – Typically £100 to £300. The exact price depends on the features you require and vary further by provider

Portable machines – These range anywhere from £50 to £200, with some options available for rental that may reduce the upfront cost

Mobile card readers – Often range from £20 to £100, especially for basic models that link to a smartphone or tablet

Smart card readers – These usually cost between £30 and £100. Sellers often include a subscription to an app or payment service

Many card payment providers offer rental options too, which can help reduce upfront costs. This can be helpful if you’re looking for the cheapest way to accept card payments.

It’s also worth comparing transaction and processing fees when investigating the overall price of a card reader, because providers often charge these separately from the cost of the machine.

How to get a credit card machine for your small business

Once you know the type of card machine you want, getting it should be straightforward. Start by researching different card payment providers. Compare prices, options and contract terms to find the best fit for your business needs and budget.

When you’re happy with a provider, start setting up your account. This usually involves applying for a merchant account, which holds any card transaction funds temporarily before transferring them to a standard account. During the setup process, you can verify your identity and provide necessary documentation to the payment provider.

After completing these steps, your card machine should arrive. Once it’s set up, you’re ready to accept card payments from customers.

FAQs

How long does a card machine payment take to process a transaction?

A card machine payment processes instantly, unless there are network issues or the card requires additional verification, such as a PIN. Once the machine approves the transaction, it completes the process and generates a receipt.

Do I need a business bank account to use a card machine?

No, you don’t need a business bank account to use a card machine, but it’s sensible to have one. Some card payment providers may allow you to link a personal account, but you might face higher fees and fewer features. A business bank account also keeps your transactions separate from personal finances, making it easier to maintain clear financial records for tax and accounting purposes.

What’s the difference between a card reader and a card machine?

While people often use the two names interchangeably, slight differences exist between them.

A card reader is a simple device that reads credit or debit card details to process payments. Small businesses and freelancers often use a card reader with a smartphone or tablet.

A card machine is a more comprehensive device that includes a card reader and handles the entire transaction process. It connects to a payment provider, processes payments securely, and often offers features such as receipts, PIN entry and transaction tracking. Card machines are typically used by larger businesses or those with fixed locations.

Can I get a card machine as a sole trader?

Yes, you can. You need to set up a merchant account during the application process, which allows you to process card transactions and arrange the deposit of the funds into a linked bank account.