For a UK small business, card machine fees can include processing charges, equipment costs and ongoing service fees. Add up the full bill before comparing offers, then check what each agreement includes.
Start with what your business actually takes in card payments. Two businesses processing £10,000 a month can have different costs if one takes hundreds of small payments and the other takes fewer, larger payments.
What can appear on a card payment bill?
Charges vary by provider, plan and payment setup. Some are bundled into one price; others appear separately. Use this list to check a quote, rather than assuming every charge applies.
| Charge | What to check |
|---|---|
| Percentage processing charge | Which rate applies to each card type and payment channel? Is the quoted rate the complete processing charge or one component? |
| Fixed transaction or authorisation charge | How much is charged per item, and which events count — successful payments, attempts or other activity? |
| Card machine purchase or rental | What is the cost for the number of devices you need? Check the equipment agreement separately. |
| Software, gateway or service subscription | Which features and connections are included, and which have an extra charge? |
| Minimum monthly charge | Is there a minimum, what counts towards it, and how is any shortfall calculated? |
| PCI-related charges | What service or requirement does each charge relate to? Distinguish a regular programme fee from a non-compliance charge. |
| Refund, dispute or retrieval charges | What happens to the original processing fee, and are there additional charges when an issue occurs? |
| Setup, changes and leaving | Ask about installation, additional devices, cancellation, notice periods and equipment return. |
A statement may group these under headings such as card fees, activity fees and other fees. Elavon's statement guide(opens in a new tab) illustrates these categories; its sample amounts are not a current price list.
If you are also changing your card machines, compare the equipment and payment service together. Buying a device and renting one create different upfront and ongoing costs.
Is the headline rate the whole processing charge?
Ask the provider to show how its price is built up. A quoted rate can apply only to specified card types or channels; ask which payments are included. Another quote may show underlying costs and the provider's charge separately.
The Payment Systems Regulator explains that the merchant service charge has several components and usually includes interchange. An interchange rate on its own is not the price a business pays for the complete payment service. Read the PSR's explanation(opens in a new tab).
For each quote, ask for the total processing cost using the same card mix. Include any business, international or other card categories you accept, and separate in-person payments from online or telephone payments where their prices differ.
Do not add a fee twice. If a quoted rate already includes a component, adding it again will make the comparison wrong.
How much should card processing cost a UK small business?
There is no single monthly figure that suits every business. Work out the total for your card sales, payment count and card mix, including equipment and other applicable charges. Then compare written quotes using those same figures. The invented example below totals £137 for £10,000 in monthly card sales; it illustrates the calculation, not a typical UK price.
Work out your monthly cost
For a straightforward quote with a percentage, a fixed fee per successful payment and a monthly charge, use:
Monthly cost = card sales × percentage rate + number of payments × fixed fee + monthly charges.
Add any other applicable costs. Where different rates apply, calculate each group separately and add the results. An authorisation fee may use a different count from successful sales, so follow the provider's actual charging rules.
Here is an invented month with £10,000 in card sales across 400 successful payments. Assume one rate covers all the payments, there are no other chargeable attempts or activities, and no additional costs or VAT are included in this illustration.
| Cost item | Calculation | Amount |
|---|---|---|
| Processing percentage | £10,000 × 1.0% | £100.00 |
| Fixed payment fee | 400 × £0.03 | £12.00 |
| Terminal rental | One terminal | £20.00 |
| Service fee | Monthly charge | £5.00 |
| Total included monthly cost | £137.00 |
The processing percentage used in this illustration is 1.0%. The included monthly costs together equal 1.37% of card sales: £137 ÷ £10,000 × 100.
That second figure is a useful comparison measure, provided you include the same costs and use the same sales basis for every offer. It is not a new contractual rate. Keep setup charges and unusual one-off costs visible rather than hiding them inside an apparently normal month.
For a real comparison, confirm which charges include VAT and show it consistently. Do not assume every line has the same treatment.
What is the cheapest way to take card payments in the UK?
Compare the full cost of suitable offers for the way your business takes payments. A plan without a monthly fee can cost less at one sales volume, while a plan with lower transaction charges can cost less at another. Check quiet months, average payment size and the service included before choosing.
Compare two offers using the same business figures
Consider two invented offers:
- Offer A: 1.5% per successful payment, with no fixed transaction or monthly charge.
- Offer B: 1.0% plus 3p per successful payment, with £25 in monthly charges.
Assume an average payment of £25, the same payment mix and equivalent equipment and service. There are no other fees, refunds, disputes, setup costs or VAT in this illustration.
| Monthly card sales | Successful payments | Offer A | Offer B |
|---|---|---|---|
| £2,000 | 80 | £30.00 | £47.40 |
| £5,000 | 200 | £75.00 | £81.00 |
| £10,000 | 400 | £150.00 | £137.00 |
| £20,000 | 800 | £300.00 | £249.00 |
Offer A costs less in the two quieter months shown. Offer B costs less at the higher volumes because the reduction in percentage charges outweighs its fixed costs.
Now change the average payment to £10. At £10,000 in monthly card sales, there would be 1,000 payments. Offer B would cost £155, while Offer A would still cost £150. The lower percentage no longer gives the lower total in this example.
A café taking many small payments and a shop taking fewer, larger payments can reach the same monthly card sales with different fixed transaction costs.
Allow for quiet months and switching costs
For a seasonal business, repeat the calculation for each month. A plan that looks attractive during peak trading may cost more across the year.
Using the £25 average-payment example above, suppose the business has three months at £20,000 and nine months at £2,000. Offer A would total £1,170 for the year; Offer B would total £1,173.60. Their annual costs are almost the same, despite Offer B looking cheaper in a busy month.
Then add the costs of getting started or switching. Put these on separate lines:
- New equipment, installation or integration work.
- Any remaining charges under your existing agreements.
- Any period when you expect to pay for both services.
Check the processing and equipment agreements separately, including notice periods and return requirements. Compare the first-year total as well as the ongoing monthly bill. Make sure the service, equipment and payout timing work for you.
Gather the right figures before asking for a quote
Use a recent processing statement, plus any separate equipment or software invoices. If trading varies, include a quiet period and a busy one.
Collect the same information for every provider:
- Card sales and transaction count for the period being compared.
- Available card-type and payment-channel breakdowns.
- Every recurring payment-related charge, including separate invoices.
- Any refunds, disputes or unusual fees that need explaining.
- The equipment and software you need, plus current agreement dates.
Use card sales for the comparison, not total business turnover that includes cash or bank transfers. Check what the statement's sales figure includes and how refunds are presented. A bank payout can differ from sales, so it should not automatically become your comparison figure.
Ask each provider to price that same profile and list anything it has left out. Where available, use its pricing summary box alongside the full quote and terms. The PSR provides guidance on summary boxes and quotation tools(opens in a new tab) to support clearer comparisons.
What to do about a fee you do not recognise
Ask what triggers the charge, what it covers and where it appears in your agreement. An unfamiliar name does not establish that a fee is wrong, avoidable or charged by every provider.
With a PCI-related fee, ask whether it pays for an ongoing service or relates to an outstanding compliance requirement. The PCI Security Standards Council says it does not run compliance programmes or impose consequences for non-compliance. Ask your provider to explain the requirements and charges that apply to your account. PCI SSC guidance(opens in a new tab).
You can use CanDo's hidden-fees checker as an initial check of the figures you enter. Its output is illustrative and uses general assumptions; it is not a formal audit or a guarantee of savings.
Common questions
Can I get a card machine without a monthly fee?
Some plans have no monthly processing-plan charge. That does not make taking payments free: check hardware costs, transaction fees and any optional services. SumUp, for example, currently offers both pay-as-you-go and paid-plan options. Compare the complete setup you would use. See SumUp's current UK pricing(opens in a new tab).
Will a lower transaction percentage save me money?
Only if the full cost is lower for your payment profile. A monthly fee or per-payment charge can outweigh the difference. Use the examples above to check how your own volume and average payment size affect the calculation.
Do I get the processing fee back when I refund a customer?
Check the applicable terms. Ask separately whether the original processing fee is returned and whether making the refund incurs another charge. Include the expected effect of refunds when comparing offers; do not assume they all handle them in the same way.
Does a PCI fee mean everything is taken care of?
Do not treat a charge on your statement as proof that you have completed your requirements. Ask your provider what the fee covers, what you still need to do and how your status is confirmed.