Card Machine With a Short-Term UK Contract

Short-term UK card machine contracts (rolling monthly or 30-day notice) are available from Dojo, SumUp, Zettle, Square and Tide. Traditional acquirers (Worldpay, Elavon, Barclaycard, Lloyds Cardnet, NatWest Tyl) typically require 12 to 60 month minimum terms with an exit fee of £150 to £450 for early termination. For a business that needs flexibility (seasonal, project-based, uncertain growth), the rolling option saves the exit fee risk but usually costs a fraction more per transaction.

What this means for your business

UK card machine contract terms split into two patterns. Short-term rolling contracts (Dojo, SumUp, Zettle, Square, Tide) commit to no minimum term and let the merchant leave on 30 days notice or less. The trade-off is typically a slightly higher transaction percentage to compensate for the platform's exposure. Long-term fixed contracts (Worldpay, Elavon, Barclaycard, Lloyds Cardnet, NatWest Tyl) commit to 12 to 60 months with an exit fee for early termination but offer lower transaction percentages because the acquirer has revenue certainty.

For most SMEs, the choice is volume-driven. Below about £3,000 monthly volume, the rolling contract saves the exit fee risk and the percentage difference (around 0.3 per cent) costs little. Above £3,000 monthly volume, the percentage difference outweighs the exit fee risk and a fixed contract usually wins on total cost over 36 months. For seasonal businesses (Christmas markets, summer event traders, agricultural traders), the rolling contract is the only sensible choice.

Read the contract for two specifics. First, the minimum term clock: most contracts start the clock at activation, some at the merchant agreement signature date, the difference can be 2 to 6 weeks. Second, the early termination fee structure: some are flat (£300 regardless of when), some prorated (months remaining x monthly fee), some tiered (higher fee in year one, lower in year two). The flat structure is usually worst for an early exit.

Key points

Rolling monthly contracts available from Dojo, SumUp, Zettle, Square and Tide
Traditional acquirers (Worldpay, Elavon, Barclaycard) require 12 to 60 month minimum terms
Exit fee for early termination is £150 to £450 on most fixed contracts
Rolling contracts typically cost around 0.3 per cent more per transaction
Breakeven between rolling and fixed is roughly £3,000 monthly volume
Seasonal businesses should always choose rolling regardless of volume
Minimum term clock can start at activation or signature, the difference is 2 to 6 weeks

Common pitfalls

Signing a 60-month fixed contract for a one-year-old business, the exit fee risk over five years is significant
Assuming a "no contract" facilitator has no commitments, the terminal warranty and data retention obligations still apply
Forgetting that the minimum term clock might start at signature not activation, this can shave weeks off the perceived term
Choosing rolling for low percentage rate without modelling, the rolling premium can outweigh the saved exit fee at higher volumes

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