Taking card payments as a sole trader: readers, links and the rules

Last checked 19 October 2026

“Can I pay by card?” is a question most sole traders hear sooner or later. Saying yes can mean getting paid on the doorstep instead of waiting for a bank transfer, which is a good reason to set it up early.

This guide covers the main ways to take card payments, the rules that apply whichever provider you use, and the admin that comes with it. We don’t rank providers here. Fees, payout times and contract terms change, so check each provider’s current terms before you sign up.

The main ways to take a card payment

Most providers offer some mix of these. Many sole traders use more than one.

• A portable card reader. A small device, often paired with a phone app, that takes chip and PIN and contactless payments. Useful if you work at customers’ homes, on markets or at events.
• Tap to pay on a phone. Some payment apps let a compatible phone accept contactless cards with no separate reader. Check which phones and card types the provider supports.
• A countertop terminal. A fixed machine for a shop, salon or studio, usually with a printer and sometimes linked to a till system.
• Payment links and QR codes. You send a link by text or email, or show a code, and the customer pays online. Handy for deposits or for invoices.
• An online checkout. A payment page on your website or booking system, if you sell or take bookings online.

When you compare options, look at the fees per transaction, any monthly charge or contract, how long payouts take to reach your bank, whether the app produces invoices or receipts, and whether it can link to your bookkeeping software.

You can’t charge consumers extra for paying by card

This is the rule that catches people out. The trading standards guidance site Business Companion explains the payment surcharges rules for England, Scotland and Wales. It says businesses can’t add a surcharge for paying by:

• consumer credit cards, debit cards or charge cards
• similar payment methods that aren’t card-based, such as phone-based payments
• electronic payment services, such as PayPal

The ban doesn’t apply to commercial debit or credit cards. Business Companion says it’s the payment method that counts, not who the buyer is. A sole trader paying with a personal credit card is covered by the ban. Someone using a corporate card, even for a personal purchase, is not.

For other methods, such as cash, cheques, standing orders and Direct Debits, a surcharge is allowed. Business Companion says that when you charge consumers, it can’t be more than it costs you to process that method, and the charge mustn’t be hidden. It also says fees that are the same whatever the payment method, such as a booking fee, aren’t payment surcharges.

Customers who are charged a banned surcharge are entitled to a refund, and trading standards can take enforcement action. The practical answer for most sole traders is to build card costs into your prices, the same way you build in fuel or materials. Our guide to working out what to charge covers how.

Chargebacks: when a card payment is reversed

GOV.UK’s Invoicing and taking payment from customers guide explains chargebacks. A customer can ask their card issuer to reverse a transaction, and the value is then reclaimed from you. GOV.UK says chargebacks can happen when:

• the item never arrived
• the item wasn’t as described
• a card was used without permission to buy the item fraudulently

GOV.UK says you can be charged up to 120 days after the transaction was debited, or from when the goods or services were due to be received.

It also gives some ways the risk differs:

• if the customer uses their PIN, GOV.UK says you’re only liable for a chargeback if the goods are faulty or not as described
• where you can’t take a PIN, a clear signature helps, but GOV.UK says there’s no guarantee
• for card-not-present payments, such as online sales or payment links, GOV.UK says the risk of a chargeback is higher

Clear descriptions, written quotes and a record of when the work was done all help if you need to respond to a dispute. Your provider will explain its own process for challenging a chargeback.

Card security: PCI DSS

The card industry has its own security standard, the Payment Card Industry Data Security Standard (PCI DSS). The PCI Security Standards Council says it provides a baseline of technical and operational requirements to protect payment account data. It applies to everyone that stores, processes or transmits cardholder data, including merchants.

For a sole trader using a reader or a hosted payment page, the provider handles most of this. Your part is usually completing whatever security checks your provider asks for, and never writing down or storing customers’ full card numbers or security codes. Ask your provider what it needs from you.

Keeping records of card payments

Card income is business income, so it needs recording like any other sale. GOV.UK’s Business records if you’re self-employed guide lists all sales and income among the records you must keep, and keep them for at least 5 years after the 31 January submission deadline for the tax year.

A few things make card income easier to track:

• Payouts may not match sales. Providers often pay out in batches, and may take their fees before paying you. Keep the provider’s statements so you can match payouts to individual sales.
• Fees. GOV.UK’s expenses guide lists bank, overdraft and credit card charges among the financial costs you can claim. Ask your accountant how your provider’s fees should appear in your records.
• Making Tax Digital. If you’ll need to use MTD for Income Tax, HMRC’s Create digital records guidance says each record needs the amount, date and category. Some payment apps can feed sales into bookkeeping software, which saves typing. Our bookkeeping software guide explains what to look for.

One more regulatory point

GOV.UK’s invoicing guide notes that if you want to set up a business that takes money from customers every time they use a service, for example online trading, you may need to be authorised by the Financial Conduct Authority. This is about running a payment service yourself. It doesn’t apply to an ordinary sole trader taking card payments for their own work through a provider.

Frequently asked questions

Can I set a minimum spend for card payments?

The surcharge rules are about extra charges for using a card. Whether you accept a given payment method at all, and on what terms, is a business decision. Make any policy clear to customers before they buy.

Can I charge a business customer a card fee?

Business Companion says the ban doesn’t apply to commercial cards, but it does apply when a business customer uses a personal card. If you’re unsure, building costs into your price avoids the issue.

Do I need a separate business bank account for card payouts?

Not by law, but it makes matching payouts to sales much easier. Our guide to a separate business bank account covers the pros and cons.

How do I send an invoice with a card payment link?

Many invoicing tools add a payment link to the invoice. Our guide to writing an invoice covers what the invoice itself must include.

Sources

All checked on 19 October 2026.

• Invoicing and taking payment from customers (GOV.UK)
• Payment surcharges (Business Companion, trading standards guidance)
• PCI Data Security Standard (PCI Security Standards Council)
• Business records if you’re self-employed (GOV.UK)
• Expenses if you’re self-employed (GOV.UK)
• Create digital records (GOV.UK, HMRC)