Card machine fees explained
Every charge on a UK card machine bill, what it means, and how to compare quotes properly, so a low headline rate doesn't hide a costly deal.
The short answer
Most UK card machine deals charge you in four ways: a percentage of each card sale, a small fixed fee per transaction, a monthly terminal fee and, sometimes, extra monthly charges such as PCI compliance or a minimum monthly fee. What you actually pay depends on your card mix, your average sale and the contract terms, not just the headline rate.
1. Transaction fees (the percentage)
This is the percentage you pay on each card sale, for example 0.5% on a £20 sale is 10p. Rates usually differ by card type:
- UK consumer debit cards: usually the cheapest.
- UK consumer credit cards: usually a little higher.
- Business, corporate and non-UK cards: usually higher again, because the card schemes charge more for them.
Part of every rate goes to the bank that issued the card (interchange) and to the card scheme, such as Visa or Mastercard (scheme fees). In the UK, interchange on consumer cards is capped at 0.2% for debit and 0.3% for credit. The rest is the provider's margin, and that's the part that varies between quotes.
2. Per-transaction fees
Many providers also charge a fixed fee on every transaction, often a few pence. It sounds small, but on low-value sales it adds up fast: on a £3 coffee, a 5p fee is 1.7% on its own. If you take lots of small payments, compare this fee as closely as the percentage.
3. Terminal rental
Most businesses rent their card machine for a monthly fee rather than buying it. Check what's included: the charging dock, a SIM card for 4G, paper rolls, and replacement if it breaks.
4. Other charges to look for
- PCI compliance fee: a monthly charge some providers add for card-security compliance. Some charge extra if you don't complete a yearly questionnaire.
- Minimum monthly service charge: a top-up you pay if your fees fall below a set amount in a quiet month.
- Authorisation or gateway fees: per-transaction charges listed separately from the main rate.
- Chargeback fees: charged when a customer disputes a payment.
- Exit fees: what it costs to leave before the contract ends.
How to compare two quotes
Headline rates are hard to compare on their own. The reliable way is to work out what each deal would have cost you last month:
- Take a recent statement and note your monthly card takings and number of transactions.
- Apply each quote's percentage to your takings, split by debit and credit if you can.
- Add the per-transaction fee multiplied by your number of transactions.
- Add terminal rental and every monthly fee: PCI, minimum charge, any others.
- Compare the totals, then check the contract length and exit fees.
Or send us your statement and we'll do it for you. We'll show you each line, what you pay now and what you'd pay with us. Many businesses could save up to 50% on some fees, and if you're already on a great deal, we'll tell you straight.
What PayZu charges
- Debit card rates from 0.29%* (T&Cs apply)
- £0 upfront, zero hidden fees, zero PCI fees
- Next-day settlement as standard
*0.29% applies to UK consumer debit cards for businesses with monthly card takings above £40,000. Credit, business and international card rates, and rates for lower takings, are quoted individually. Subject to eligibility and status.
Related
Send your statement — let us beat it
Tell us about your business and we'll come back with a line-by-line comparison. You can also email your statement to info@payzu.co.uk.
- Debit card rates from 0.29% (T&Cs apply)
- £0 upfront
- Zero hidden & PCI fees
- Next-day settlement