Card machine fees in the UK are rarely just one number. The headline rate is only part of the bill: there can also be per-transaction charges, terminal rental, security compliance fees, minimum monthly charges and contract terms that cost more than the rate itself. This guide explains each fee, the three main pricing models and how to work out what you really pay from your own statement.
We don’t quote card rates on this page, because what you’ll be offered depends on your turnover, average transaction, card mix, sector and the provider’s own checks. Where numbers help, we use clearly labelled examples. They are not Switch&Save or partner rates.
The short answer
Most UK card machine deals are made up of some or all of these:
- a percentage of each card payment (the transaction fee or merchant service charge);
- a fixed fee per transaction, often called an authorisation fee;
- terminal rental each month, or a one-off price to buy the machine;
- a PCI DSS compliance fee, plus a higher charge if you don’t complete it;
- a minimum monthly service charge if your fees fall below a set amount;
- account or service fees, and occasional charges such as chargeback fees.
Add them all up and divide by your card takings. That gives your effective rate, which is the only fair way to compare one deal with another.
Where a card fee goes
Every card payment pays several parties:
- The card issuer (your customer’s bank) receives the interchange fee.
- The card scheme, such as Visa or Mastercard, charges scheme fees.
- The acquirer or payment provider that processes your payments adds its own margin, and may also charge for the terminal and the account.
For UK-issued consumer cards, interchange is capped by regulation at 0.2% of the transaction for debit cards and 0.3% for credit cards. Commercial (business) cards and cards issued outside the UK aren’t covered by those caps and usually cost more to accept. That’s why your card mix affects your bill. If you want to understand who does what, read our explainer on PSPs vs acquirers.
The fees on a typical UK card machine deal
| Fee | What it is | What to check |
|---|---|---|
| Transaction fee | A percentage of each card payment. | Is it one rate for all cards, or different rates for debit, credit, commercial and overseas cards? |
| Authorisation or per-transaction fee | A fixed amount in pence charged on each transaction. | It hits hardest if your average sale is small. |
| Terminal rental or purchase | A monthly fee per terminal, or a one-off cost to buy it. | How long the rental runs, and whether it’s a separate agreement. |
| PCI DSS compliance fee | A charge for the provider’s card-security compliance programme. | Whether a non-compliance charge applies if you miss the annual questionnaire. |
| Minimum monthly service charge (MMSC) | A top-up if your transaction fees fall below a set monthly amount. | Important if you’re seasonal or have quiet months. |
| Account, service or platform fee | A fixed monthly admin charge. | Whether it’s charged on top of terminal rental. |
| Chargeback fee | A charge when a customer disputes a payment. | The fee per dispute and how disputes are handled. |
| Card-not-present and other rates | Phone payments, payment links and some card types can be priced differently. | The rates for every way you actually take payments. |
| Settlement options | Some providers charge for faster or weekend payouts. | When your money lands in your bank, and what that costs. |
Chargebacks can be won with the right evidence. Our guide on how to dispute a chargeback explains what to keep.
Blended, tiered or interchange++: the three pricing models
Blended (flat-rate) pricing
You pay one percentage for most cards, sometimes with a separate rate for American Express. It’s simple and predictable, and suits smaller or newer businesses. The trade-off is that you pay the same rate on a low-cost UK debit card as on an expensive commercial card, so a debit-heavy business can end up overpaying.
Tiered pricing
Cards are grouped into bands, such as consumer debit, consumer credit, commercial and non-UK cards, each with its own rate. Check which cards fall into which band. Statements can show a low “headline” band while many payments are charged at a higher one.
Interchange plus plus (IC++)
You pay the actual interchange and scheme fees for each payment, plus the provider’s fixed margin. It’s the most transparent model and is often better value for businesses with higher turnover and a lot of debit card payments. The downside is that costs vary from month to month and statements are longer.
| Model | Often suits | Watch out for |
|---|---|---|
| Blended | Lower or unpredictable turnover; owners who want simple bills. | Paying credit-card prices on cheap debit transactions. |
| Tiered | Businesses that want some card-type pricing without full detail. | Which cards land in the expensive tiers. |
| Interchange++ | Higher turnover; mostly UK debit cards. | Monthly variation and harder-to-read statements. |
Worked examples
All figures in this section are illustrative assumptions to show how the maths works. They are not Switch&Save or partner rates.
Example 1: the same deal at three turnovers
Assume a 1.5% transaction fee, a 3p fee on every transaction, an average sale of £10 and £25 a month in fixed charges (terminal, PCI and account fees combined).
| Monthly card takings | Total monthly fees | Effective rate |
|---|---|---|
| £5,000 (500 transactions) | £75 + £15 + £25 = £115 | 2.30% |
| £10,000 (1,000 transactions) | £150 + £30 + £25 = £205 | 2.05% |
| £25,000 (2,500 transactions) | £375 + £75 + £25 = £475 | 1.90% |
The percentage stays the same, but fixed charges make up a bigger share of the bill when takings are lower. A deal that looks cheap on the headline rate can be expensive for a smaller business.
Example 2: why your average sale matters
A 3p per-transaction fee adds 0.75% to a £4 coffee, but only 0.075% to a £40 shop. For cafés and other businesses with small average sales, the per-transaction fee can matter more than the percentage.
Example 3: the minimum monthly charge
Suppose your agreement has a £20 minimum monthly service charge and your transaction fees in a quiet month come to £12. You’d pay £20, an extra £8, for that month.
How to read your merchant statement
- Find your total card takings for the month and the number of transactions.
- Add up every charge: transaction fees for each card type, per-transaction fees, terminal rental, PCI fees, any minimum-charge top-up, account fees and chargebacks.
- Include charges billed elsewhere. Terminal rental is sometimes invoiced separately by a rental company.
- Work out your effective rate: total charges ÷ card takings × 100. For example, £230 in charges on £10,000 of takings is an effective rate of 2.3%.
- Look at your card mix: how much was debit, credit, commercial and overseas.
- Note your contract details: end date, notice period and any early termination fee.
It also helps to check that your card takings match your till every day. Here’s how to reconcile card payments with daily sales.
Card machines with no monthly fee
Pay-as-you-go card readers let you buy the device and pay no monthly fee. In return, the percentage per transaction is usually higher. They suit low or occasional card takings, while monthly plans tend to work out cheaper as takings grow.
Example (illustrative figures): a pay-as-you-go plan at 1.8% compared with a monthly plan at 1.3% plus £20 a month. The difference in rate is 0.5%, and 0.5% of £4,000 is £20, so the monthly plan becomes cheaper once you take more than £4,000 a month by card.
Taking payments on a phone is another low-cost option for mobile or occasional sales. Compare Tap to Pay on iPhone vs a card reader.
Can you pass card fees on to customers?
Not for consumer cards. Since January 2018, UK businesses have not been allowed to add a surcharge when consumers pay by card. The rules for commercial (business) cards are different, so check with your provider before charging any business customer extra.
Contract terms that can cost more than the rate
- Minimum term and auto-renewal: some agreements renew automatically unless you give notice in time.
- Notice period: check how much notice is needed and how it must be given.
- Early termination fees: find out how they’re calculated before you sign.
- Separate terminal rental: a rental agreement can carry on after you leave the processing agreement.
- Price changes: check whether the provider can change your rates during the contract, and how much notice they must give.
- American Express: it may be priced or contracted separately.
How to lower your card machine fees
- Know your effective rate, so you’re comparing like with like.
- Choose the pricing model that fits your turnover and card mix.
- Get quotes based on your real statement, not a headline rate.
- Complete your PCI DSS questionnaire on time to avoid non-compliance charges.
- Don’t rent terminals you no longer use.
- If you’re seasonal, check the minimum monthly charge.
- Integrate your card machine with your till to avoid keying errors and make reconciliation easier.
- Review your deal before the renewal date, not after it.
How Switch&Save can help
We work with three UK card providers: DNA Payments, Teya and Dojo (Dojo for retail). That means we can compare offers for your business rather than push a single provider. Send us a recent card statement and we’ll go through what you’re paying now and what our partner providers could offer. Rates are set by each provider and depend on their own checks.
If you also need a till, an integrated payments bundle sends the amount from your EPOS to the card terminal automatically. See our card machines page for the providers we work with.
Card machine fees: frequently asked questions
What is a good card machine rate in the UK?
There isn’t one figure that’s right for everyone. A fair deal for a busy shop taking mostly debit cards will look very different from one for a small café. Compare offers on your effective rate, meaning all fees divided by your card takings, using your own statement.
What’s the difference between blended and interchange++ pricing?
Blended pricing charges one rate for most cards and is simple to understand. Interchange++ passes on the actual interchange and scheme fees plus a fixed provider margin. It’s more transparent and often better value at higher volumes, but costs vary each month.
Is a card machine with no monthly fee cheaper?
Only at low card takings. Pay-as-you-go plans usually charge a higher percentage, so once your takings grow, a monthly plan with a lower rate often costs less overall.
What is a PCI compliance fee, and can I avoid it?
It’s a charge linked to the card industry’s security standard (PCI DSS). Many providers add an extra non-compliance charge if you don’t complete the annual self-assessment questionnaire, so doing it on time avoids that part.
What is a minimum monthly service charge?
It’s a minimum amount you pay in transaction fees each month. If your fees fall below it, you pay the difference, which matters most in quiet or seasonal months.
Can I charge customers extra for paying by card?
Not for consumer cards. Surcharging consumer card payments has been banned in the UK since January 2018. Rules for commercial cards differ, so check with your provider first.
Get your card fees checked
Send us your latest card statement, or book a free 20–30 minute remote demo to see how integrated card payments work with our EPOS. There’s no hard sell. Book your free demo or get in touch:
SWITCH&SAVE Business Services Ltd, 3A Perry Common Road, Erdington, Birmingham, B23 7AB · 0333 0389707 · hello@switch-and-save.uk · WhatsApp +44 7432 391811