How to switch card payment provider and check exit costs

01

What should I check before I try to switch card machine provider?

Check three things first: your contract length and notice period, what leaving early would cost, and your effective rate. These show whether switching saves money and when the best time to switch is.

Your contract length tells you when you can leave without a penalty. Your exit fee tells you what leaving early would cost, including terminal buy-out and any minimum monthly charge. Your effective rate, total monthly fees divided by total card takings, tells you what you pay today, so you can judge whether a quote is really better. Processing and terminal rental are often separate contracts.

02

How do I find out when my contract ends and what leaving will cost?

Read your processing agreement and any separate terminal lease for the minimum term, notice period and termination charges. Then check your latest statement for the summary box and any trigger message, and ask your provider to confirm the end date in writing.

Under the PSR rules, 14 named providers must send businesses with up to £50 million of card turnover a summary box and a trigger message. The trigger message goes with the invoice closest to 30 calendar days before a minimum term expires, or monthly if there is none. If your provider is not one of the 14, these rules may not apply, so ask.

Regulation 51 of the Payment Services Regulations 2017 says the payment service user may end a framework contract at any time, unless the parties agreed a notice period of up to one month. Termination charges must reasonably correspond to the provider's actual costs, and the provider may not charge for termination once the contract has run for six months.

Two cautions apply. Where the user is not a consumer, a micro-enterprise or a charity, the parties may agree that Part 6 of those regulations does not apply. The Financial Ombudsman Service describes a micro-enterprise as a business with fewer than 10 employees and annual turnover or a balance sheet of no more than €2 million. And a separate terminal lease may have different terms. Ask which clause your provider relies on for any exit fee, and take legal advice if the sum is large.

03

What are the six steps to switch card machine provider, and how long does each take?

The steps are: gather documents, confirm your end date and exit cost, get a written quote, check compatibility, run the new system alongside the old, then cancel in writing. Each date is set by contracts and approvals, not one fixed timetable.

1. 01
   Gather your documents

   Collect your processing agreement, terminal lease, three recent statements and the name and version of any till or EPOS system.

2. 02
   Confirm your end date and exit cost

   Ask your provider to confirm in writing the minimum term end date, notice period and early termination charge, for processing and terminals separately.

3. 03
   Get a written quote on your own monthFull step in the download ↓
4. 04
   Check your till and terminal work togetherFull step in the download ↓
5. 05
   Go live alongside the old systemFull step in the download ↓
6. 06
   Cancel and close out the old agreementFull step in the download ↓

There is no standard number of days. Ask the new provider for expected dates.

04

If I am still in a contract, can I switch, and will anyone cover the exit fee?

You can ask for a quote at any time, but leaving early may trigger an exit fee. DOJO has offered to cover up to £3,000 of exit fees for businesses that switch. It is a cap with conditions, so get the offer in writing before you rely on it.

Asking for a quote commits you to nothing. Do not cancel your existing provider until you have reviewed the new written terms and dates.

The words that matter in the DOJO offer are "up to" and "terms apply". Reeve Consult's own guidance says any contribution or support with exit costs depends on the current provider offer and eligibility, so confirm the written terms that apply to you.

05

Will my till and terminal work together, and how do I avoid a gap in takings?

Check compatibility for your exact till product, software version and set-up, and get it confirmed in writing. Avoid a gap by taking live payments on the new terminal and confirming the first settlement before you cancel.

Compatibility depends on the specific EPOS product, software version and configuration. Ask your EPOS provider whether the new terminal supports what you use, such as tips, split bills, refunds and end-of-day reports.

Authorising a card payment and receiving the money are separate steps. Ask both providers for the settlement schedule, including weekends and bank holidays, and plan the cut-over for a quiet day.

Refunds and chargebacks can arrive after you leave. The standard UK chargeback time limit is 120 days, stretching to 540 days in some circumstances, under card scheme rules rather than UK law. Ask your old provider how refunds, chargebacks and final fees are handled after closure.

06

What are the most common worries about switching, and what are the answers?

The usual worries are a till that will not connect, a gap in payouts, being locked in and a price-match offer from your current provider. Confirm compatibility in writing, prove the new system before cancelling, read your notice and exit terms, and treat a match offer as a written quote.

Ask your EPOS provider and the new provider to confirm your exact set-up in writing. Avoid a payout gap by proving the new terminal and its first settlement before you cancel. Being locked in comes down to your end date, notice period and exit charge. A price-match offer is just another quote, so get it in writing and compare effective rates.

07

What can I do if the switch goes wrong?

Keep written records, complain to the provider concerned and ask which clause it relies on for any charge. If it is not resolved, you may be able to go to the Financial Ombudsman Service if your business qualifies.

Keep the quote, the signed agreement, your cancellation notice and every email confirming a date. If the old provider charges an unexpected fee, ask it to point to the clause and compare it with regulation 51.

The Financial Ombudsman Service accepts complaints from micro-enterprises (defined earlier) and from small businesses with turnover under £6.5 million and either a balance sheet under £5 million or fewer than 50 employees. Whether it can look at your complaint depends on the firm and the issue.

08

How does Reeve Consult fit in, and what should I do next?

Reeve Consult is an authorised DOJO partner. We can review your statement and a written DOJO proposal, and we may receive a referral fee from DOJO if you go ahead. Still compare it with at least one other written quote.

To start, gather the documents from step one. A rate-comparison request does not upload files, so contact the team to agree a safe way to share your statement, and never send passwords or card numbers.

Exit-fee cover, rates and dates should all appear in the written proposal. This is not legal advice.