What Are the Fees for a Card Machine in the UK?

You were quoted 1.4%. Your statement says you paid £412 on £20,000 of card sales, which is 2.06%.

Nothing has gone wrong. The quoted rate covered one type of card, and everything else was charged separately in lines you never asked about.

Card processing usually costs a UK independent more per year than the till does. Here's every charge, and how to find your real number in about ten minutes.

The charges that make up your bill

ChargeWhat it isTypical shape
Interchange | Paid to the customer's bank | A percentage, set by the card schemes 
Scheme fees | Paid to Visa and Mastercard | Small percentage plus fixed bits 
Acquirer margin | Your provider's cut | The part that's actually negotiable 
Merchant service charge (MSC) | The three above, combined | Shown as one rate, or itemised 
Authorisation fee | Per transaction, whatever the value | 1p–5p per sale 
Terminal rental | Hire of the machine | £15–£30 + VAT a month 
PCI compliance fee | Security programme charge | £3–£10 a month, plus non-compliance fees 
Minimum monthly service charge | A floor you pay in quiet months | £10–£25 a month 
Refund and chargeback fees | Per event | Often £5–£20 per chargeback

Ranges reflect what is commonly advertised in the UK as of August 2026. Providers price differently, so check current terms with anyone you're comparing.

Blended, interchange-plus and fixed pricing

Blended gives you one headline rate across most cards. It's simple to read and usually the most expensive, because the provider builds in a cushion.

Interchange-plus shows interchange and scheme fees at cost, then the provider's margin on top. Harder to read, generally cheaper, and much easier to compare between providers because the margin is visible.

Fixed rate is what most card readers use — one percentage on everything, no monthly fee. Predictable, and typically the priciest per pound once you're doing real volume.

If you take more than a few thousand pounds a month on cards, ask for interchange-plus and compare the margin. That single question often saves more than switching provider.

The rates that catch people out

• Commercial and business cards carry higher interchange, and your blended rate usually doesn't cover them.
• Non-UK and non-EEA cards cost more. Tourist-heavy sites feel this.
• Keyed and phone payments are charged at a higher card-not-present rate.
• American Express is often a separate agreement at a separate rate.
• Small transactions are hit hardest by the per-transaction authorisation fee.

That last one matters most for cafés and newsagents. On a £2.20 sale, a 3p authorisation fee is 1.4% on its own, before any percentage rate.

How to work out your real effective rate

1. Take one month's merchant statement.
2. Add every charge on it — MSC, authorisation fees, terminal rental, PCI, minimum charges, anything else.
3. Divide by your total card turnover for that month.
4. Multiply by 100.

That's your effective rate, and it's the only figure worth comparing. When another provider quotes you, ask them to quote against that number rather than a headline percentage.

What this looks like in a real business

Illustrative example. A café takes £20,000 a month on cards across 1,600 transactions, average £12.50. Assumptions: blended 1.55%, 3p per authorisation, £22 terminal rental, £6 PCI fee. All figures invented.

LineCost
MSC at 1.55% on £20,000 | £310.00
Authorisation, 1,600 × 3p | £48.00
Terminal rental | £22.00
PCI compliance | £6.00
Total | £386.00
Effective rate | 1.93%

The café was sold on "1.55%". It pays 1.93%, and the gap is £912 a year.

Two changes close most of it: moving the authorisation fee down, and dropping the rental by taking a machine that came with the till. Neither requires changing bank.

Frequently asked questions

What is a good card machine rate for a small business?

Judge it on effective rate, not the headline. Many UK independents land between 1.4% and 2.2% all-in. Where you sit depends on average transaction value and card mix more than on negotiation.

Why are my card fees higher than the rate I was quoted?

Usually commercial cards, non-UK cards, per-transaction authorisation fees and fixed monthly charges. Ask your provider for an itemised statement and check each line.

Can I pass card fees on to customers?

UK rules ban surcharging consumers for most standard card payments. Check the current position with your provider before adding anything at the till.

Is it cheaper to have the card machine with my EPOS supplier?

Often, because rental can be bundled and there's one place to call when something fails. It also removes typing errors — see integrated card payments.

Should I use a card reader instead?

At low volumes, sometimes. We compare the maths in card reader or full EPOS.

Send us a statement and we'll read it for you

Book a free, no-obligation review, send one recent merchant statement, and we'll work out your effective rate and show you line by line where the money goes. If your current deal is already good, we'll say so. Our card machine options are there if it isn't.