What are you paying for?
A card payment passes through several organisations before the money reaches your business. Your provider’s processing charge covers some combination of the card issuer’s interchange fee, card network fees and the provider’s own margin. Other services, such as a terminal or payment gateway, may be billed separately.
The headline rate is only one part of the price. To understand your costs, start with your agreement, pricing schedule and a recent monthly statement.
The three numbers to compare
Many straightforward quotes include a percentage of the payment value, a fixed fee per transaction and a monthly subscription. For example, a purely illustrative price of 1.4% plus 10p would cost 38p on a £20 payment: 28p in percentage fees and 10p in fixed fees.
Fixed fees matter more when your average sale is small. Monthly fees matter more when you process fewer transactions. Compare each element using your own sales pattern.
Blended pricing and interchange++
A blended price combines several processing components into a quoted rate, though different card types and payment channels may still have different prices. It is often simpler to estimate, but check which transactions qualify.
Interchange++ separates interchange, card scheme fees and the provider’s markup. The overall cost can vary with your card mix, so the markup alone is not your total transaction rate. Ask for an estimate based on your actual transactions.
Look beyond transaction charges
Check for terminal rental, gateway charges, minimum monthly service charges, authorisation fees, refunds, chargebacks and early termination costs. International cards, commercial cards and currency conversion may have separate pricing.
Some charges apply only in particular circumstances. Ask your provider which ones apply to your business and how they appear on your invoice.
Turn a quote into a useful estimate
Collect your monthly transaction count, average sale value and quoted fees. Use the RateIQ comparison tool to estimate percentage, fixed transaction and monthly costs side by side. Add any other applicable fees separately before deciding.