Switch Card Machine Provider: Costs & Checklist

To switch card machine provider, check both your processing and terminal contracts, calculate the full cost of leaving, compare a complete new quote and arrange a tested changeover. Time the switch around your notice dates, and test the new setup before you rely on it, so you reduce the risk of a gap in card payments.

Here's how to do each step, and what the rules on card machine contracts now say.

Step 1: Find both of your contracts

Many businesses have two separate agreements, sometimes with two different companies:

• The payment processing agreement: the service that handles your card payments and charges your transaction fees.
• The terminal agreement: the rental, lease or hire of the card machine itself.

They can have different lengths, notice periods and exit terms, so check both. Terminal contracts in particular have caused problems in the past: the Payment Systems Regulator found they could lock businesses in for as long as 48 months ^[1].

Step 2: Check what the rules say about your terminal contract

The regulator's terminal-hire remedy limits the initial term of relevant agreements offered by its directed providers to 18 months, followed by periods no longer than a month. It covers merchants with annual card turnover up to £10 million; the directed providers' independent sales organisations must ensure relevant compliance too ^[1][2]. This is a terminal-hire rule, not a universal limit on every payment-processing contract ^[1][2].

So if your terminal contract started recently with one of those providers, you may be closer to the end of it than you think. If your contract is older, or with a smaller company, check the terms rather than assuming.

Step 3: Read the important parts of each contract

For each agreement, find these four things:

1. The minimum term end date. Leaving before this date usually costs more.
2. The notice period and how to give it. Check how much notice you need and whether it must be in writing.
3. The early termination fee. Ask for the exact amount and calculation in writing before deciding when to switch.
4. Automatic renewal. Check whether the contract renews by itself if you don't give notice in time.

If you can't find your contract, ask your provider to confirm these details in writing. Gather your latest merchant statement too: our guide to reading your card machine statement explains which figures you need for a fair comparison.

Step 4: Use the reminders you're owed

The regulator also requires those named providers to send each business a summary box with its key prices and terms, and reminder messages prompting it to shop around or switch, shown in its online account too ^[2]. If you're with one of them, look in your online account for these: they make comparing much easier.

Step 5: Work out whether leaving now is worth it

An exit fee isn't automatically a reason to stay. Compare it with what you'd save each month.

Example: a business would pay £400 to leave its contract early, and switching would cut its card costs by £60 a month. The exit fee is paid back in under seven months (£400 divided by £60), and everything after that is money saved. If the saving were only £15 a month, it would take over two years to pay back, and waiting for the contract to end would make more sense.

If your contract ends in the next few months, it's often simplest to line up the new provider now and switch on the end date.

Compare the same complete bill

Use the same card turnover, payment count and debit/credit mix for both quotes. Include processing, authorisation fees, machine rental, monthly subscriptions, minimum-charge top-ups and any extra recurring charges. Compare VAT on the same basis and keep any one-off exit or setup charges separate.

Example: a business has £80 a month of processing fees, £5 of authorisation fees, £20 of rental and £10 of other recurring charges. Its current total is £115 before VAT. A complete new quote of £85 would give an illustrative £30 monthly difference. A £180 exit cost would take six months to recover. If the new quote leaves out a charge, that break-even calculation changes.

Our card-machine statement guide shows where to find the figures. Use the fee and savings calculator for an illustration, then confirm the actual quote and agreement terms.

Step 6: Plan the changeover

1. Line up your new setup with your notice period. If your notice period is short, you can wait until the new machine arrives before giving notice. If it's long, giving notice sooner can avoid paying two providers at once, but leaves less room if the new machine is delayed. Ask your new provider how long setup usually takes, then decide.
2. Test it with a real payment before you rely on it.
3. Give notice in writing to your old provider, keeping a copy and quoting your account number.
4. Keep the old machine until the new one is fully working, then return any rented equipment exactly as your terminal contract says.
5. Check your final invoices before you cancel any direct debits, so nothing is left owing.

Where TrustPOS fits

We'll review your contract end date and your current costs, then tell you whether switching now or later makes sense. If you switch to us:

• Shift4 Solo: a free card machine with no monthly machine cost, at 1.25% per transaction with no authorisation fee. Its agreement is 18 months with free cancellation at any time; we confirm the notice and equipment-return steps before you apply.
• myPOS Ultra: £20 a month plus VAT, with 0.32% plus 3p on debit cards and 0.62% plus 3p on credit cards. Its card fees have a £20 monthly minimum: if the calculated fees are lower, you pay the difference.
• Shift4 Dine: a full till system for £39 a month plus VAT at 0.9% plus 2p per transaction, on a 12-month agreement. Leaving early costs the monthly rental for each month remaining.

Quick switching checklist

1. Find both contracts: processing and terminal.
2. Note each end date, notice period and exit fee.
3. Look for your summary box and reminders in your provider's online account.
4. Compare the exit fee with your monthly saving.
5. Plan the changeover around your notice dates, and test the new machine before you rely on it.

Quick answers

What is a rolling card machine contract?

A rolling contract carries on for short periods, usually a month at a time, once the minimum term ends. For terminal hire from the providers covered by the regulator's remedy, the initial term is limited to 18 months, followed by periods no longer than a month ^[1][2]. Check your own agreement for its notice period.

How do I end a card machine contract?

Find the minimum term end date, the notice period and how notice must be given, then give notice in writing and keep a copy. Ask your provider to confirm any early termination fee in writing first, and keep your old machine until the new one is working.

Should I lease a card machine?

Check the term before signing. The Payment Systems Regulator found that terminal contracts could lock businesses in for as long as 48 months ^[1]. A free machine with no monthly machine cost, or a short rental term, avoids paying for equipment long after you might want to switch.

Can I switch card machine provider before my contract ends?

Usually yes, but leaving early often means an early termination fee. Divide that fee by your expected monthly saving to see how many months it takes to pay back, and compare that with simply waiting for the end date.