Card Machine Fees Explained: Complete UK Guide 2026
Understand ALL card payment fees - transaction %, monthly charges, hidden costs, and how to reduce them. Most businesses overpay by 20-40%.
Calculate Your SavingsComplete Fee Breakdown
1. Transaction Fee (0.75% - 2.5%)
Charged on EVERY card payment. The biggest cost for most businesses.
Example:
£10,000 sales/month × 1.75% = £175/month = £2,100/year
Reducing to 1.29% saves £552/year!
2. Monthly Service Fee (£0 - £25)
Fixed monthly charge for account management, support, reporting.
- • Square, SumUp, Zettle: £0
- • Dojo: £9.95-£19.95
- • Worldpay: £15-£25
3. Hardware Cost (£0 - £300)
One-off cost OR monthly rental. Buying outright usually cheaper long-term.
- • Budget: £19-£39 (Square, SumUp)
- • Mid-range: £99-£199 (Dojo, Zettle Terminal)
- • Professional: £200-£300 (Worldpay, Barclaycard)
4. Hidden Fees (Watch Out!)
Fees providers don't advertise clearly:
- • PCI Compliance: £5-15/month (some include free)
- • Chargebacks: £15-25 per dispute
- • Statement Fee: £5-10/month
- • Minimum Monthly: £20-50 if sales too low
- • Early Termination: £150-500 if you leave contract early
Calculate Your TRUE Monthly Cost
Your estimated monthly cost:
£185
Annual cost: £2,220
Card Machine Fee FAQs
What fees do card machines charge?▼
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.
What is the difference between debit and credit card fees?▼
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.
What are interchange fees?▼
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.
What is PCI compliance and why do I pay for it?▼
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.
Are there monthly minimum fees?▼
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.
What hidden fees should I watch for?▼
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).
Can I negotiate card machine fees?▼
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.
What is blended vs interchange+ pricing?▼
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.
Do fees include VAT?▼
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?"
How can I reduce my card machine fees?▼
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.
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