Before You Start: Know Your Numbers
You can't negotiate effectively without knowing your baseline. Calculate:
| Metric |
How to Calculate |
Why It Matters |
| Monthly card turnover |
Total card sales per month |
Higher volume = more leverage |
| Average transaction value |
Monthly turnover ÷ number of transactions |
Higher values can mean better rates |
| Debit vs credit mix |
% of transactions that are debit |
High debit % qualifies for IC++ pricing |
| Current effective rate |
(Total monthly fees ÷ turnover) × 100 |
Your baseline for comparison |
💡 Preparation is Power: Write these numbers down before any negotiation call. Providers respect prepared customers.
1 Timing: When to Negotiate
Best Times to Negotiate:
- End of month/quarter: Sales reps have targets to hit
- 3 months before contract renewal: Provider doesn't want to lose you
- After strong growth: "We've doubled our volume - need better rates"
- When you have competing quotes: Leverage = lower rates
- New year (January): Providers set annual budgets, more flexibility
Worst Times:
- Mid-contract with no exit clause
- After chargebacks or disputes
- When your volume has decreased
- Immediately after signing (wait 6+ months)
Script: "I'm reviewing our payment processing ahead of our contract renewal in [X] months. We've grown significantly and want to ensure we have competitive rates. Can we discuss our current arrangement?"
2 Get Multiple Quotes First
Never negotiate with just one provider. Aim for 3-5 competitive quotes.
Where to get quotes:
- Direct from providers (Worldpay, Dojo, SumUp, etc.)
- Comparison services like MerchantSwitch
- Your bank's merchant services
- Specialist brokers
Script: "I have quotes ranging from 1.15% to 1.65% for my volume. Your current rate is 1.85%. To keep my business, I need you to match or beat 1.15%. Can you do that?"
💡 Negotiation Leverage: Having real quotes (not hypothetical) gives you massive leverage. Providers know you're serious about switching.
3 Highlight Your Volume (Even If It's Modest)
Frame your volume positively:
| Your Volume |
How to Frame It |
| £10K/month |
"We process £120K annually and growing 20% year-over-year" |
| £25K/month |
"We're doing £300K annually with plans to double next year" |
| £50K/month |
"We're a £600K account - that's substantial for a single location" |
Script: "We process £[X] monthly, which is £[Y] annually. We're growing [Z]% year-over-year. For an account of this size, I'd expect rates below [target rate]%. What can you offer?"
4 Emphasize Your Debit Card Ratio
If 70%+ of your transactions are debit cards, push for Interchange Plus (IC++) pricing.
Script: "85% of our transactions are UK consumer debit cards. We're paying interchange of just 0.2%, yet our blended rate is 1.75%. With IC++ at interchange + 0.5%, we'd pay 0.7% on most transactions. That's a massive difference. Can you offer IC++ pricing?"
The Math That Convinces Them:
Example for £20K/month (85% debit):
- Current (1.75% blended): £350/month
- IC++ (0.2% + 0.5% on debit): £119/month on debit + £60 on credit = £179/month
- Savings: £171/month or £2,052/year
5 Trade Contract Length for Better Rates
Providers prefer long contracts. Use this to your advantage.
Script: "I see you're offering 1.35% on a rolling monthly contract. If I commit to 18 months, can you reduce that to 1.15%? I'm willing to commit longer for better economics."
The Trade-Off:
| Contract Length |
Typical Rate Improvement |
| Rolling monthly |
Baseline rate |
| 12 months |
0.1-0.2% reduction |
| 18 months |
0.2-0.3% reduction |
| 24 months |
0.3-0.4% reduction |
⚠️ Warning: Don't commit to more than 24 months. Market rates change, technology improves, and you might outgrow your provider. 12-18 months is the sweet spot.
6 Negotiate Equipment Purchase vs Rental
Terminal rental is a profit center for providers. Push back.
Script: "Your quote includes £25/month terminal rental, which is £450 over 18 months. I can buy a terminal outright for £250. Either include a free terminal, sell it to me at cost, or remove the rental fee from my rate. Otherwise, £25/month makes this uncompetitive."
Three Outcomes:
- Free terminal: Best outcome, saves £450
- Buy at cost (£200-300): Good outcome, saves £150-250
- Rate reduction of 0.1%: Acceptable if high volume
7 Bundle Services for Better Rates
If you need multiple services, negotiate a package deal.
Script: "I need both card-present (£30K/month) and online gateway (£15K/month) processing. If I give you both, what package rate can you offer? I'd expect something significantly better than standalone pricing."
Services to Bundle:
- In-person + online payments
- Card machines + virtual terminal
- Multiple locations
- Merchant services + funding
8 Request Fee Waivers
Many fees are negotiable - you just need to ask.
| Fee |
Negotiation Script |
| PCI Compliance Fee |
"Can you include PCI compliance in the package? I'll complete the SAQ annually if you waive the fee." |
| Minimum Monthly Service Charge |
"My volume far exceeds any reasonable minimum. Can you remove the MMSC?" |
| Setup Fee |
"I'm bringing you £X,000 monthly business. Surely you can waive a one-time setup fee?" |
| Statement Fee |
"I'll use online statements only. Remove the paper statement fee entirely." |
💡 Pro Tip: If they won't waive fees, ask for them to be included in your transaction rate instead. Example: "Add the £15/month PCI fee into my rate (0.05% extra) so I have one simple rate."
9 Include an Annual Review Clause
Protect yourself from market changes.
Script: "I'll sign 18 months on the condition that we include an annual rate review clause. If market rates drop or my volume increases 25%+, we renegotiate rates. This protects both of us from market changes."
Sample Clause Language:
"Rates will be reviewed annually. If merchant's processing volume increases by 25% or more, or if market rates decrease by 0.2% or more, parties agree to renegotiate pricing to remain competitive with current market rates."
10 Use a Broker/Comparison Service as Leverage
Mentioning you're working with a broker/comparison service signals serious intent.
Script: "I'm working with MerchantSwitch to review the market. They're presenting me with 5 competitive quotes. To make my shortlist, I need your absolute best rate - not a standard quote. What's your most competitive offer?"
Why This Works:
- Providers know brokers mean real competition
- They'll assume you're seeing better rates elsewhere
- They'll offer their "broker rate" (typically 0.2-0.4% lower)
- Shows you're informed and serious
The Ultimate Negotiation Script
Opening:
"Hi [Name], I'm reviewing our payment processing ahead of [contract renewal / expansion]. We're currently processing £[X] monthly, about [Y]% debit cards, average transaction £[Z]. Our current effective rate is [A]%."
Establish Leverage:
"I have quotes from [Provider 1] at [rate]% and [Provider 2] at [rate]%. I'm also working with a comparison service that's showing me rates as low as [lowest rate]%."
Make Your Ask:
"I'd prefer to stay with you given our [positive aspect - history, service, integration]. To do that, I need you to match [target rate]% with no setup fees, PCI compliance included, and [terminal purchase / rental waiver / other specific ask]."
Create Urgency:
"I need to make a decision by [specific date - usually 7-14 days]. Can you come back to me with your best possible offer by [date 2-3 days from now]?"
Closing:
"If you can meet these terms, I'm ready to commit to [12/18] months today. What can you do?"
What If They Say No?
Response 1: The Softer Counter
"I understand that's your standard rate, but I'm not a standard customer. I process £[X] monthly with [positive attribute]. Can you escalate this to someone with authority to offer competitive rates? I'm ready to sign today with the right offer."
Response 2: The Firmer Push
"I appreciate that, but I have written quotes [0.3%] lower than your offer. I'd prefer not to switch - it's disruptive - but I can't justify paying [£X] more per year. This is your last chance to keep my business. What can you really do?"
Response 3: The Walk-Away
"I understand you can't match competitive rates. I'll be moving to [Provider] effective [date]. Please send me instructions for cancellation and equipment return. Thank you for your service."
💡 The Walk-Away Often Works: 40-50% of the time, providers will call back within 48 hours with a better offer when they realize you're serious about leaving.
Red Flags: When to Walk Away
- Pressure tactics: "This rate expires in 24 hours" (good deals don't expire)
- Vague pricing: Won't give specific numbers in writing
- Hidden fees: "There might be additional charges"
- Long contracts with high ETFs: 36+ months with £500+ early termination
- Refuses to negotiate: "Take it or leave it" attitude
Post-Negotiation: Get It In Writing
⚠️ Critical: Verbal agreements mean nothing. Before signing, verify:
- Exact transaction rates (debit, credit, business cards, international)
- All monthly fees listed
- Contract length and notice period
- Early termination fee
- Rate review clause (if negotiated)
- Any fee waivers confirmed in writing
Real-World Success Stories
Case 1: Restaurant (£40K/month)
- Initial offer: 1.65% blended
- After negotiation: IC++ at 0.22% + 0.45% = ~0.67% effective
- Used tactics: #2, #4, #7, #10
- Annual savings: £4,704
Case 2: Retail Store (£18K/month)
- Initial offer: 1.95% + £25/month rental + £15 PCI
- After negotiation: 1.35% + purchased terminal + PCI waived
- Used tactics: #2, #3, #6, #8
- Annual savings: £1,776
💡 Average Savings: UK businesses that actively negotiate save £150-£500/month on average. That's £1,800-£6,000 per year for 30-60 minutes of negotiation work. Best hourly rate ever!
Final Tips
- Be confident but polite: Providers respond better to respectful negotiation
- Know when to compromise: Getting 80% of what you want is success
- Don't lie about competing quotes: Providers can verify, and lying destroys trust
- Negotiate annually: Even mid-contract, ask for rate reviews if your volume grows
- Document everything: Keep emails, quotes, and agreements
- Follow through: If you say you'll switch, do it. Credibility matters for future negotiations