Card Machine Cancellation and Early Termination Costs
Check separate agreements, notice periods, terminal return requirements and the cost of leaving before you switch payment providers.
The short answer
Start by identifying every agreement you would need to end. Processing, terminal hire and EPOS software may have different suppliers, dates and notice requirements. Ask each supplier for an itemised written exit figure for your intended date, then include that figure in your savings calculation.
In this guide
One payment setup can involve several agreements
| Agreement | What to record |
|---|---|
| Card acquiring or processing | Contracting company, start date, minimum term and cancellation method. |
| Terminal rental or lease | Owner, payments remaining, return procedure and any return costs. |
| EPOS software and support | Renewal date, paid licences, data access and required notice. |
| Gateway or integration | Separate subscription and the effect of ending the payment service. |
takepayments, for example, explains that customers enter a separate acquiring agreement alongside its service. The arrangement you have may differ. A sales agent’s trading name does not necessarily identify every company to which you owe notice.
What does the PSR’s 18-month terminal rule cover?
Specific Direction 16 covers qualifying terminal agreements linked to directed payment providers, including qualifying third-party arrangements, for merchants with annual card turnover up to £10 million. The agreement must include a terminal within the direction’s definition and at least two scheduled payments.
For covered new agreements entered into from 6 January 2023, any initial minimum term must not exceed 18 months. After that initial term, the recurring term and merchant notice are limited to one month. Older covered agreements move to monthly terms after their original minimum period; the direction does not simply cut every older initial term to 18 months.
For covered new agreements, exit fees must reflect costs and be disclosed and explained before agreement. This is not a universal 18-month limit on all processing, EPOS software or equipment contracts. Check the consolidated direction and ask the provider to explain its application to your agreement. If a disputed charge is material, obtain advice on that agreement.
Request an exit statement before giving final instructions
Information request
Please provide the earliest date on which I can end agreement [reference], the required notice method and an itemised total for ending on [date]. Please identify the contract clauses relied on, payments already included in the figure, equipment return requirements and any other continuing charges. This request is for information and is not notice to terminate.
Once you decide to leave, send actual notice through the required channel and keep the acknowledgement. Confirm which services end and when. Ending a payment mandate or returning a terminal alone may not end the relevant agreement.
Worked example: the cost of switching now
Fictional confirmed exit figures. Assume the suppliers have quoted £240 for terminal termination, £90 for processing closure and £30 for return carriage. A necessary period of overlap adds £60. These are illustrative charges, not standard or necessarily permissible fees for another agreement.
Total switching cost is £420. If the complete alternative saves £70 monthly, first-year savings after these costs are £840 − £420 = £420, with a six-month break-even. Do not add remaining rental payments again if the £240 figure already includes them.
If waiting changes the exit figure, calculate a dated alternative. Compare the extra current fees paid while waiting with the exit cost avoided, using the same end date for both options.
Close the account with a clear record
- Get the accepted cancellation date and final amount for each agreement.
- Confirm how refunds, chargebacks and final settlements will be handled after closure.
- Export the business records you need while access remains available.
- Return equipment using the specified process and retain delivery evidence.
- Reconcile the final statement, credits and any deposit returned.
Arrange and check the replacement service before the old one ends. Our switching guide covers the operational sequence; this page focuses on the contractual cost.
Track renewals, data access and the actual exit date
Create a renewal register for each supplier, recording the minimum term, renewal mechanism, notice deadline and accepted notice route. Check any price-change clauses and confirm what happens when an introductory offer ends.
Request a dated exit statement that identifies equipment return, account closure, data extraction and continuing software access charges where they apply. These are questions to resolve under the actual agreement, not fees every provider is entitled to charge.
Compare leaving now with leaving later over the same end date. If a settlement already includes the remaining rental, do not also add those payments to the exit total. Keep the agreed figure alongside the new setup budget and the complete TCO comparison.
Common questions
Can I assume every card machine contract ends after 18 months?
No. The PSR direction has defined scope and different treatment for new and existing agreements. Separate software and processing contracts need their own review.
Will my new provider pay all my exit fees?
Only rely on a written contribution offer that covers your situation. Check the cap, exclusions, evidence, payment date and any repayment conditions.
Put your own figures to work.
Use the free calculator to organise your costs and keep a report. If something is unclear, you can ask for a free initial review.
No registration required. Calculator entries stay in your open browser page unless you choose to share a report in a review request.
Sources and how to use this guide
Primary references checked on 15 October 2026:
- PSR: Specific Direction 16 and consolidated May 2024 text
- takepayments: processing, rental and minimum monthly charges
Worked examples are original fictional scenarios, not customer results, market averages or provider quotations. Unless stated otherwise, they use a consistent VAT basis and include only the costs listed. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.