Card Machine Fees Explained: Complete UK Guide 2026

Main fees: Transaction fee (% of each sale, typically 0.75-2.5%), Monthly service fee (£0-£25), Hardware cost (£0-£300), PCI compliance fee (£0-£15/month), and potential extras like chargeback fees, minimum monthly fees, or early termination charges.

Debit cards are cheaper (0.3-0.8%) because interchange fees are lower. Credit cards cost more (0.8-1.5%) due to higher interchange. Business/corporate cards highest (1.5-3%). Some providers charge flat rates regardless of card type.

Interchange fees are set by Visa and Mastercard - the cost to process card payments (0.2-1.5% typically). These go to card-issuing banks, not your provider. Your provider adds their markup on top. Total fee = interchange + provider markup.

PCI DSS compliance ensures you handle card data securely. Cost: £5-15/month (some providers include it free). It's legally required if you take card payments. Providers charge to maintain security infrastructure and annual audits.

Some providers charge minimum monthly fees (e.g., "£25 minimum or 1.5% of sales, whichever is higher"). If you process less than threshold, you pay minimum anyway. Square, SumUp, Zettle have NO minimums.

Common hidden fees: Chargeback fees (£15-25 per dispute), Statement fees (£5-10/month), Terminal rental vs purchase, Early termination fees (£150-500), PCI non-compliance fines (£20-50/month), Annual PCI fee (£50-100).

Yes if you process £20,000+/month. Providers negotiate on: Transaction % (can reduce 0.2-0.5%), Monthly fees (can waive), Contract length (leverage for better rates). We negotiate on your behalf using our buying power.

Blended = one flat rate for all cards (simple but often more expensive). Interchange+ = cost varies by card type (complex but usually cheaper for high volume). Example: Blended 1.75% vs Interchange+ 0.3% debit + 0.8% credit.

Hardware usually quoted +VAT. Transaction fees and monthly fees are VAT-exempt (financial services). But PCI fees and some admin charges include VAT. Always ask "is that price including VAT?"

7 ways: 1) Compare providers annually, 2) Process higher volume (negotiate), 3) Choose interchange+ pricing, 4) Avoid unnecessary features, 5) Review contract before auto-renewal, 6) Use surcharging (where legal), 7) Let us negotiate for you.