Payments
Does a card machine with no monthly fee cost less?
Avoiding a fixed fee can suit low or irregular takings. Compare the transaction charges, equipment and service terms with a monthly plan to see what each would cost for your business.
Written by Jessica Gardner, In-house Editor, Reeve Consult · 2 min read
Updated
Is a card machine with no monthly fee always cheaper?
No. It removes a particular fixed charge, but transaction fees and equipment costs can still apply. At some levels of takings, a plan with a fixed fee and lower transaction pricing may cost less; at others, the fixed fee is not worthwhile. The break-even point depends on the actual proposals, transaction count and card mix. Support, settlement and flexibility also need comparing.
- There is no single turnover threshold that applies to every provider and plan.
- “No monthly fee” does not necessarily mean every software feature is included.
- A fair comparison uses the same activity and period for both options.
A plan with no monthly fee can keep fixed costs down when takings are low or irregular. A monthly plan may offer a different transaction price or service arrangement. The useful comparison needs the actual offers and your payment activity.
What does the phrase tell you?
It says that a particular recurring fee is absent. It does not establish the transaction price, equipment cost or whether every software feature is included. Read the plan and fee schedule rather than infer those details from the headline.
How do you compare two plans?
Use the same period, card turnover, transaction count and card mix. Include equipment, fixed charges, per-transaction amounts and any relevant services. Separate one-off purchases from recurring costs.
Here is a fictional example with no additional costs: Plan A charges 1.5% and no monthly fee. Plan B charges £20 a month and 1.0%.
| Monthly card takings | Plan A | Plan B |
|---|---|---|
| £1,000 | £15 | £30 |
| £4,000 | £60 | £60 |
| £10,000 | £150 | £120 |
The break-even in this example is £4,000. It is the £20 fixed fee divided by the 0.5 percentage-point rate difference. Different fees, card types or per-transaction charges change the result. These are illustrative prices, not supplier offers.
Find out what each charge pays for, how to calculate your overall rate and which questions to ask your provider.
What else could change the decision?
Check settlement timing, support during trading hours, receipt requirements and till compatibility. A plan that costs slightly less may create more work if amounts need entering twice or the device cannot be shared as intended.
Contract flexibility also has value for occasional trading. Establish termination and hardware terms for the actual offer rather than assume every provider uses the same arrangement.
How should a seasonal business compare costs?
Calculate both a quiet month and a busy month, then the year. A fixed charge continues through months with little activity unless the agreement says otherwise. Higher transaction charges have more effect in the busy period.
Reeve Consult can review your activity alongside a written DOJO proposal. The comparison should show complete costs and service differences, not declare that every no-monthly-fee plan is expensive or lacks support.
Frequently asked questions
Straight answers
Is the example’s £4,000 break-even a general rule?
How should seasonal takings be compared?
Next step
Which part of your payment setup would you like to improve?
Tell us where customers pay, which till you use and which charges you want explained. We can discuss the options and arrange a statement review.
Request a payment reviewJessica Gardner is the in-house editor at Reeve Consult. She writes and edits every guide, blog post, and resource published on the site, making sure the writing is plain-English, the facts check out, and the advice is genuinely useful for the UK independent business owners we work with. Jessica spent eight years in editorial roles across UK trade and business publications before joining Reeve Consult.