Card payment solutions

Cash hasn’t dominated transactions in the UK for several years, as credit card and debit card use rose to replace it. These days phones, watches, apps and devices are also used to make payments. 

And card use is still rising - some 1.7 billion debit and credit card transactions were made by UK cardholders in January 2022, almost 10% more than in January 2020. Of these, contactless payments accounted for about 1.2 billion transactions. 

What is a card payment machine?

Card payment machines, card readers, Chip and PIN readers, PDQs or simply card terminals – however they're referred to – are pretty much everywhere, so it makes sense to understand them.

These are devices used to pay for something, typically with a debit or credit card. They can be fixed in place on or near the till, a portable handheld device, which uses Bluetooth technology, or even a mobile phone with a reader app installed. 

Aside from contactless payments, they can also accept four-digit PIN codes - and this is a must if a customer's asked for cashback or buying something worth more than £100 with a standard card - although some phones and other devices will let you pay more wirelessly if you authenticate the transaction.

Where are card payment machines used?

Most retailers, restaurants and other goods and service providers now take card payments via card machines. For the retailer it’s safe and secure, as they have an audit trail of what money they’ve taken, plus they don’t have to work with so much cash on site. 

For customers, it’s also convenient as queue times are shorter. Handheld payment readers have proved a big hit in restaurants, on airplanes and at sports or leisure venues. Basically, anywhere you might not want to get out of your seat to pay. 

Fixed, counter-top devices have been a mainstay of supermarkets, stores and petrol stations for years and it was their take-up that encouraged the rest of us to trust the technology.

More and more, card readers are being employed in those areas where cash has continued to be used, such as vending machines, gym and sports centre lockers, public transport and parking meters.

Even pop-up stalls, street traders, buskers and Big Issue sellers are now sometimes equipped with the devices - in fact the technology is versatile and easy enough to apply to all manner of applications that it’s hard to imagine where it won’t work.

How to get a card terminal for your business

Card terminals are linked to a bank account - that's something that's pretty non-negotiable.

After that, your options are considerable.

For £30 you can pick up a small hand-held terminal that works with an app on your phone to accept payments, you'll lose a percentage of every sale (1.75% with Zettle or 1.6% with Barclays, for example), but there are no other ongoing costs and you're not tied in to a contract.

Some business accounts even come with a free payment terminal included - although this is generally only useful for smaller businesses, as it tends to be the most basic options.

From there, providers let you run all the way up to larger terminals you can rent on a monthly basis with variable charges - much like a mobile phone contract - to entire payment systems including configurable tills, accounting software, online payments, receipt printing and more.

How card payment machines work

Here’s a breakdown of the process in a little more detail:

• When a customer presents their card, its chip sends the transaction details to your merchant bank account. This sits aside from your business bank account and holds funds while the payment process trundles on. 

• The merchant bank sends the payment request via broadband or a phone line to the customer’s card provider – usually Visa, Mastercard or American Express.

• The card provider transmits a request for payment authorisation to the customer’s bank or credit card provider.

At this point typically one of two things happens:

• The transaction goes through if the card details are all correct and if there’s enough money in the account. 

• The payment’s rejected because the card details aren’t correct or the customer doesn’t have enough money to cover the transaction. In this case the card’s either held by the retailer – if the merchant bank receives a message saying the card’s been fraudulently used - or it’s returned. 

Note: It’s also possible that a transaction may be voided due to a break in the internet connection or another program failing. In this case you can ask the customer to start the payment process over again. On the odd occasion, a card provider may request a PIN to check you the the legitimate cardholder is using it.

How long will it take for the payment to register in your account?

Depending on the time of the day, and whether it occurred at a weekend or on a bank holiday, it can take up to three days for the payment to appeal on your account.