How to get out of a card machine contract

The short version: if you signed on or after 6 January 2023, your card machine lease or rental almost certainly can't tie you in for more than 18 months. After that, it must end or roll month to month. If you signed earlier, you may be in a longer contract, but you still have options. Start by finding four facts.

Check four things first

1. The date you signed. It decides which rules apply. It's on your agreement or your welcome email.
2. Who your provider is. This is the company that processes your payments. It isn't always the company whose name is on the machine or the salesperson who signed you up.
3. Who the machine is leased from. Some machines are leased from a separate finance company under a separate agreement. That lease can outlast your payment contract.
4. Your yearly card turnover. The 18-month rule covers businesses taking up to £10m a year on card, which includes almost every small business.

The 18-month rule

The Payment Systems Regulator (PSR), which regulates UK payment systems, found that small businesses rarely switch card provider. Prices weren't published, contracts often had no end date, and leaving meant exit fees plus a new machine. Its fix took effect on 6 January 2023:

• a new card machine lease or rental can have a first term of no more than 18 months;
• after that it must end, or roll on for no more than 31 days at a time;
• it covers businesses with up to £10m a year in card turnover;
• it applies to the main UK card providers named by the PSR, and to the companies that sell their services, including independent sales organisations and leasing companies.¹

So if you signed in 2024 and you're more than 18 months in, you should be on a rolling contract and able to leave on short notice.

Contracts signed before 6 January 2023

Older contracts are not affected by the rule and can run for their original term. That is sometimes 36 or 48 months, and some renew automatically if you don't give notice in time. If you're in one:

• find the end date and the notice period, and put a reminder in your calendar well before it;
• check whether it renews automatically, and for how long;
• work out the exit fee (below), because leaving early can still be cheaper than staying.

How early termination fees are worked out

Every contract words this differently, but exit fees usually take one of three forms:

• The rental left to run: monthly rental × months remaining. On a £20 rental with 10 months left, that's £200 plus VAT.
• A fixed fee, sometimes reduced the longer you have been with them.
• Lost minimum charges: any minimum monthly service charge you'd have paid for the rest of the term.

Then compare. If you're overpaying by £60 a month and the exit fee is £240 plus VAT (£288), leaving pays for itself in under five months. Our statement guide shows how to work out what you're really paying, so you can do this maths with real numbers.

Step by step: how to leave

1. Get a better deal lined up first. Don't cancel until your new machine is ready. You don't want a gap where you can't take cards.
2. Read the cancellation clause. Note the notice period (30 days is common) and how notice must be given: email, letter or online form.
3. Give notice in writing and keep a copy. Ask them to confirm the end date and any final charges in writing.
4. Cancel the lease separately if your machine comes from a finance company.
5. Return the machine the way they ask, and get proof of postage. Unreturned machines are a common source of surprise charges.
6. Check your next two statements and your bank account for charges after the end date.

Can a new provider pay your exit fee?

Sometimes. Some providers offer to cover all or part of an exit fee to win your business. If one does, get the amount and the conditions in writing before you sign. Make sure the new deal is cheaper over its whole term, not just in the first month, and check that the new contract doesn't lock you in for longer than 18 months.

If you think you were mis-sold

If you were told the contract was shorter than it is, or not told about fees, take these steps in order:

1. Complain to the provider in writing. Say what you were told and what happened. They usually have eight weeks to give you a final response.
2. Go to the Financial Ombudsman Service if you're not happy with the answer. Many small businesses can use it for free, including micro-enterprises (fewer than 10 staff and turnover under €2m) and small businesses (fewer than 50 staff, and either turnover under £6.5m or a balance sheet under £5m). Check eligibility on the Ombudsman's website.²
3. Separate leases with finance companies may be handled differently. Ask the Ombudsman whether yours is covered.

Before you leave: know what you'd save

Leaving only makes sense if the new deal is cheaper once exit fees are counted. Our calculator gives you an estimated monthly saving in seconds. For an exact figure, send us your statement and we'll work out what you'd pay with the cheapest option available to you.

Not sure whether to rent or buy your next machine? Read rent vs buy vs no contract first.