PDQ Card Machines for Small Businesses

Do people still call them PDQ machines?

Yes, particularly in the UK, but “PDQ” is increasingly a legacy term. If you search for a new PDQ machine today, the products you will actually compare are card readers, card terminals and integrated payment devices.

That is worth knowing because searching only for “PDQ rental” can push you towards older-style merchant-service packages when a simple no-contract reader may be perfectly adequate.

Card payments are now the normal way to pay

The case for accepting cards no longer needs statistics from 2019. UK Finance reported that in December 2025 contactless accounted for 67% of credit-card transactions and 76% of debit-card transactions, with 19.2 billion UK contactless card payments made during 2025.

For many customer-facing businesses, the practical question is no longer whether to accept cards but which payment setup gives the right balance of cost, reliability and flexibility.

What is the UK contactless limit?

The standard single-transaction contactless card limit remains £100. Banks and payment providers now have greater flexibility over how limits may work in future, but UK Finance says most customers are unlikely to see immediate changes.

Mobile-wallet payments such as Apple Pay and Google Pay are different. They are not subject to the same fixed £100 contactless-card limit because the device authenticates the user, for example with Face ID, a fingerprint or passcode.

How does a card machine payment work?

The process looks instant to the customer, but several parties are involved behind the scenes.

1. You enter or select the amount to be charged.
2. The customer taps, inserts or otherwise presents an accepted payment method.
3. The terminal securely sends the transaction through the payment provider/acquirer and relevant card network.
4. The customer’s card issuer decides whether to approve or decline the transaction.
5. The terminal confirms the result, usually within seconds.
6. The money is settled to your nominated account according to the provider’s settlement timetable.

A paper receipt is no longer essential to the process. Modern terminals and POS systems may offer printed, emailed or digital receipts.

Do you need a separate merchant account?

Not always. This is another major change from the old page.

Traditional acquiring arrangements may involve a dedicated merchant account and a separate card-terminal agreement. But providers such as Square, SumUp and PayPal can bundle payment acceptance into their service, so a small merchant does not necessarily go to a bank and arrange a standalone merchant account first.

If your turnover is higher or your payment requirements are more complex, a traditional merchant account or negotiated acquiring arrangement may still produce better pricing.

Countertop, portable or mobile: which should you choose?

What fees should you compare?

Do not compare card machines using the transaction percentage alone. Ask for the complete charging structure.

• Transaction fee: percentage or blended rate on each card payment.
• Terminal cost: bought outright, rented or included within a plan.
• Monthly service charge: some providers charge one, others do not.
• Minimum monthly service charge: potentially important for seasonal businesses.
• Card-type differences: commercial, international and premium cards may cost more.
• Authorisation or transaction charges: check whether there are additional pence-per-transaction fees.
• PCI charges: traditional merchant agreements may have separate compliance-related fees.
• Refund and chargeback fees: relevant if returns or disputes are common.
• Settlement: check how quickly money reaches you and whether faster settlement costs extra.
• Contract and exit fees: particularly important on rented terminals.

Current low-commitment benchmarks

If you want a simple reference point before comparing a traditional merchant-services quote:

• SumUp: currently charges 1.69% per card-reader transaction on its pay-as-you-go plan with no monthly fee. Its Payments Plus option costs £19 per month and advertises 0.99% for eligible domestic consumer-card payments.
• Square: currently charges 1.75% for UK card-present chip-and-PIN or contactless transactions, with no monthly charge for its standard Square POS software.
• PayPal Reader: currently advertises a £29 reader and a 1.75% transaction fee with no monthly contract.

These simple plans are useful benchmarks, but they do not automatically beat a negotiated merchant rate for a business processing much larger volumes.

Features worth paying attention to

Contactless and digital wallets

This is basic functionality now. Check support for the card brands and wallets your customers actually use rather than assuming every payment method is automatically included.

Standalone connectivity

If the terminal will leave your premises, ask whether it has its own mobile-data connection or depends on a phone hotspot or app.

EPOS integration

Integrated payments can send the amount directly from the till to the terminal, reducing keying errors and making reconciliation easier.

Tips and gratuities

Important in hospitality and some service sectors. Look at how the tip prompt works in practice rather than simply checking a features box.

Pre-authorisation

Useful for hotels and other businesses that need to reserve funds before the final amount is known. Confirm the provider and terminal support your specific use case.

Remote and card-not-present payments

Do not assume manually keying card details into a terminal is the best way to take a remote payment. Payment links, online checkout and virtual terminals can be more appropriate, with their own pricing and security requirements.

What about PCI DSS?

Businesses accepting card payments have responsibilities under the Payment Card Industry Data Security Standard. A modern payment provider can reduce the amount of sensitive card data your business handles directly, but it does not mean you should ignore compliance.

See our PCI DSS guide for a fuller explanation.

Should you buy or rent a card machine?

The old argument that rented machines are always better because technology changes is too simplistic. Modern outright-purchase readers can be inexpensive enough to replace when necessary. The important comparison is total cost and contract flexibility.

How to choose a PDQ/card machine

Use five questions:

1. Where will you take payments: fixed counter, around the premises or on the road?
2. How much card turnover do you process each month?
3. What is your average transaction value?
4. Do you need EPOS, tipping, pre-authorisation or other specialist features?
5. Would you rather pay a simple flat rate or negotiate a longer merchant-services contract?

Those answers matter far more than whether the hardware says Ingenico, Verifone, PAX or another manufacturer’s name on the back.

Frequently asked questions

Bottom line

A PDQ machine is simply the modern card terminal your business uses to take face-to-face payments. For a small business, the most important choice is not the name of the hardware manufacturer. It is the commercial arrangement behind the terminal.

Decide whether you need countertop, portable or mobile hardware, estimate your monthly card turnover and then compare transaction fees, fixed charges, settlement, support and contract length. Low-volume businesses may prefer a simple pay-as-you-go reader, while higher-volume merchants can often justify comparing negotiated merchant-service rates.