Best Card Machines for Taxi Drivers UK

London black cabs: the payment rule is specific

Transport for London requires every licensed London taxi to have a TfL-approved card payment device installed in the passenger compartment.

The approved fixed device must accept card and contactless payments and must be able to produce a printed receipt when a passenger asks for one.

TfL also states that handheld payment devices do not meet the licensing requirement for the mandatory taxi payment setup.

Before installing or replacing equipment, check TfL’s current card-payment guidance and approved supplier list.

Why we would use TfL’s live supplier list

The approved device and supplier list can change. Rather than choosing from a list copied into an article months ago, check TfL’s current document immediately before ordering or replacing a terminal.

That reduces the risk of paying for hardware that does not meet the licensing requirement for your taxi model.

What if your London taxi terminal stops working?

TfL expects drivers to check that the payment device is working before they start work.

If there is a fault, report it to the payment provider as soon as possible. If you rent the taxi, report it to the proprietor so they can arrange repair, replacement or another taxi if necessary.

TfL advises drivers to keep confirmation that the fault has been reported and details of the repair or replacement appointment.

What about a network-wide outage?

If there is a documented network-wide outage affecting many approved devices, TfL says affected drivers should warn passengers before accepting the fare that card payment is unavailable and explain why.

TfL specifically says drivers should not switch to an alternative non-fixed card reader during that situation.

Private hire and minicab payments

Private hire works differently. In many businesses, the customer pays inside the booking app and the driver never needs to handle the card directly.

If you accept payment separately, check both your operator agreement and your local licensing rules before buying a reader.

Where a normal mobile reader is permitted, keep the setup simple. For a self-employed driver, the main things to compare are:

• upfront hardware cost
• transaction fee
• whether the reader needs your phone
• mobile signal and connectivity
• battery life
• digital or printed receipts
• how quickly the money reaches your account

Our mobile card reader guide compares the main options for owner-operated businesses.

Square for private hire and chauffeur businesses

Where a normal mobile reader is allowed, Square is a useful benchmark because the Reader costs £19 + VAT and standard in-person card payments cost 1.75%.

It pairs with a compatible phone or tablet, and Square’s standard POS software has no monthly fee.

That can work well for a chauffeur or independent driver who wants low upfront cost and straightforward receipts without renting a traditional terminal.

See our Square Card Reader review or the broader best card machines for small businesses.

SumUp for private hire and mobile drivers

SumUp Solo Lite costs £25 + VAT and standard PAYG card-reader payments cost 1.69%.

It is particularly simple for a self-employed driver because there is no monthly processing subscription on PAYG. The reader pairs with your phone.

If you prefer a standalone device, SumUp also offers Solo and Terminal models that do not depend on a paired phone.

Read our SumUp Card Reader review and SumUp fees guide.

PayPal Reader for drivers already using PayPal

PayPal Reader is another option where licensing and operator rules allow a normal mobile reader.

The first Reader currently costs £29 excluding VAT, and standard card/contactless payments are 1.75%.

It makes most sense if PayPal already plays a meaningful role in your business, for example if you also take deposits or other payments through PayPal.

Read our PayPal Card Reader review.

Tap to Pay on your phone

Tap to Pay can turn a compatible phone into a contactless terminal through a supported payment app.

For a chauffeur or private-hire driver who only takes occasional direct card payments, that may remove the need to carry another piece of hardware.

It can also work as a useful backup where your licensing rules allow it.

It does not replace the TfL-approved fixed terminal required for a licensed London black cab.

See our Tap to Pay and iPhone card reader guide and contactless payment guide.

Card surcharges

You cannot simply add an extra charge because a consumer chooses to pay by a normal credit or debit card.

TfL also highlights that private-hire operators cannot charge customers an extra amount simply because they pay by credit or debit card.

Build the cost of card acceptance into your normal fares and business costs rather than trying to add a separate card surcharge.

Receipts matter for taxi customers

London taxis must be able to provide a printed receipt from the approved payment setup when requested.

Outside that specific rule, receipts are still commercially important. Business travellers often need them for expenses, so make sure you can produce a reliable digital or paper receipt without making the passenger wait.

Signal and reliability can matter more than 0.1% on fees

A driver takes payments in different locations all day. That makes mobile coverage and battery life especially important.

For example, the difference between a 1.69% and 1.75% fee on a £40 fare is only a few pence. Losing the whole fare because the reader cannot connect is much more expensive.

Settlement and cash flow

Check when fares reach the business account you actually use.

For an owner-driver, settlement speed can matter if you need to cover fuel, charging, vehicle rental or other costs every day.

If you are also reviewing banking, see our business bank accounts guide.

Taxi fleets should compare tailored pricing

If you run several vehicles and process a meaningful amount by card every month, do not assume a flat PAYG rate will remain the best value.

A fleet can potentially benefit from negotiated processing rates, central reporting and easier device management.

Compare our payment processing companies, card machine providers and merchant accounts guide.

PCI DSS and taxi payments

Use approved payment systems rather than writing down or manually storing passenger card details.

Using a recognised reader or terminal generally keeps sensitive card information inside the provider’s payment system, although your business still has payment-security responsibilities.

See our PCI DSS guide and guide to accepting card payments.

Questions to ask before choosing

1. Is this payment setup allowed by my licensing authority?
2. If I drive a London black cab, is the device on TfL’s current approved list?
3. Does it meet the passenger-compartment requirement?
4. Can I provide the required receipt?
5. What happens if the network goes down?
6. What is the normal transaction fee?
7. Are there any fixed pence-per-transaction charges?
8. How quickly do fares reach my bank account?
9. What happens if the device breaks?
10. Is there a contract or monthly minimum?
11. Would tailored pricing be cheaper for several vehicles?

Frequently asked questions

Our verdict

For a licensed London black cab, start with TfL’s current approved payment-device list, not a generic card-reader comparison. Compliance comes first: the device must be approved, fixed in the passenger compartment and able to provide a printed receipt on request.

For private-hire drivers, chauffeurs and taxi businesses outside that specific TfL black-cab requirement, Square, SumUp, PayPal and Tap to Pay can all be useful options where your operator and local licensing rules allow them.

If you work alone, keep the setup simple. If you run several cars or process substantial card turnover, compare tailored merchant-service pricing as well as low-cost PAYG readers.