Card Processing Fees UK 2026: Rates, Costs, Hidden Fees & How to Save Quick answer
Card processing fees are the charges UK businesses pay to accept debit card, credit card, contactless, mobile wallet, online and phone payments.
In 2026, many small UK businesses pay around 1.69% to 1.75% for simple in-person card reader payments. Businesses with higher card turnover may be able to negotiate lower custom rates through a merchant account or card machine provider. Online, keyed-in, payment link and virtual terminal payments usually cost more than standard in-person card payments.
The cheapest provider depends on how your business takes payments, your monthly card turnover, your average transaction value, your card mix and whether you need a card reader, countertop terminal, portable machine, EPOS integration, online checkout or virtual terminal.
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Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: July 2026
Contents
Card Processing Fees Breakdown (UK 2026)
What Affects Card Processing Fees?
Interchange++ vs Flat Rate Pricing
Online vs In-Person Fees
Key Takeaways About Card Processing Fees UK
Card processing fees are the costs businesses pay to accept card payments.
In-person card payments are usually cheaper than online, phone, payment link or manually keyed payments.
Simple card readers often charge flat rates around 1.69% to 1.75%.
Higher-volume businesses may be able to negotiate lower custom rates.
The cheapest provider depends on monthly card turnover, average transaction value and card mix.
Debit card payments are often cheaper than credit card payments on some merchant account pricing models.
Commercial cards, international cards and American Express can cost more.
Terminal rental, PCI fees, authorisation fees and chargeback fees can significantly increase the real cost.
Flat-rate pricing is simple, but not always cheapest once your turnover grows.
Interchange++ can be cheaper and more transparent, but it is more complex.
The most important number is your effective processing rate.
Comparing providers can help businesses reduce card processing costs by up to 40%.
Compare card processing fees and find a cheaper card machine provider for your business.
Card processing fees at a glance
Fee type Typical UK cost to compare What it means
In-person card reader fee
Around 1.69% to 1.75% on common flat-rate plans
Charged when customers tap, insert or use Chip and PIN
Custom merchant account rate
Often lower for higher-volume businesses
Quote-based pricing depending on turnover and risk
Online payment fee
Often percentage plus fixed fee
Charged for ecommerce, checkout and website payments
Payment link fee
Often higher than in-person payments
Charged when customers pay through a link
Virtual terminal fee
Monthly fee and/or higher transaction fee
Used for phone or manually keyed payments
Terminal rental
Often £0 to £40+ per month
Monthly cost for countertop, portable or mobile terminals
Authorisation fee
Often a few pence per transaction
Charged by some merchant account providers
PCI compliance fee
Often £0 to £20+ per month
Security compliance cost charged by some providers
Chargeback fee
Often £10 to £25+
Charged if a customer disputes a transaction
Early termination fee
Varies
Charged if you leave a contract early
Need a card machine for your business?
This quote service is best for UK businesses that want to take in-person payments using:
a card reader
countertop card machine
portable PDQ machine
mobile card terminal
Chip and PIN machine
contactless payment terminal
EPOS-integrated card machine
merchant account
It is not the best fit if you only need:
Stripe checkout for a website
a personal PayPal account
a one-off payment link
a way to receive money from friends or family
general advice without business payment processing
online-only ecommerce payments with no in-person selling
Compare business card machine quotes
Free quotes • No obligation • Compare leading UK providers
Need a card machine for your business?
This quote service is best for UK businesses that want to take card payments in person using a card reader, countertop terminal, portable PDQ machine or merchant account.
Compare Business Card Machine Quotes
Card Machine Fees Calculator UK
Card Machine Fees Calculator UK Estimate your monthly and annual card processing costs in seconds. Adjust the fields below to see how much your current setup could be costing you.
Pricing model Flat rate Custom / Merchant account
Your Estimated Costs
Estimated monthly fees
£0.00
Estimated annual fees
£0.00
Estimated monthly transactions
0
Potential monthly saving
£0.00
You could save money by switching to a lower-fee provider.
This calculator is an estimate only. Actual card machine costs vary by provider, pricing structure, card mix, sector and contract terms.
Card Processing Fees Breakdown UK 2026
Fee What it is Why it matters
Transaction fee
Percentage or fixed fee on each payment
Terminal rental
Monthly fee for card machine hardware
Can make low rates more expensive overall
Authorisation fee
Small per-transaction fee
Adds up if you have many low-value transactions
PCI compliance fee
Fee for payment security compliance
Common with some merchant account providers
Chargeback fee
Fee when a customer disputes a payment
Important for online and high-risk sectors
Refund fee
Fee charged on refunds by some providers
Check if you refund often
Settlement fee
Fee for receiving payouts
Can apply for faster settlement
Minimum monthly fee
Minimum amount charged even if sales are low
Bad for seasonal or low-volume businesses
Setup fee
One-off account or terminal setup cost
Less common but still worth checking
Exit fee
Cost to leave before contract ends
Can make switching expensive
Statement fee
Charge for paper or account statements
Avoidable with some providers
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What Are Card Processing Fees? Card processing fees are the charges your business pays whenever a customer pays by card, and they usually
debit card payments
credit card payments
contactless payments
Apple Pay
Google Pay
online checkout
payment links
virtual terminals
phone payments
card readers
countertop card machines
portable card machines
mobile card machines
EPOS-integrated payments
The fee is usually charged by your payment processor, card machine provider or merchant services provider.
For example, if a customer pays £100 and your transaction fee is 1.75%, the card processing fee is £1.75.
What affects card processing fees? Your card processing fees depend on:
monthly card turnover
average transaction value
number of transactions
business type
card-present vs card-not-present payments
debit card vs credit card mix
UK vs international cards
consumer vs commercial cards
American Express acceptance
online vs in-person payments
chargeback risk
contract length
terminal type
EPOS integration
settlement speed
provider pricing model
A small café taking hundreds of low-value contactless payments will have different costs from a B2B supplier taking a few large payments each week.
That is why comparing only one transaction rate can be misleading.
Flat rate vs custom pricing Most UK businesses will see one of two broad pricing models: flat rate or custom pricing.
Flat-rate pricing
Flat-rate pricing means you pay a simple set percentage for card payments, which is common with providers such as Square, SumUp and Paypal.
Flat-rate pricing may suit:
start-ups
sole traders
market traders
mobile sellers
low-volume businesses
seasonal businesses
businesses that want no long contract
businesses that want simple pricing
The advantage is simplicity, and he downside is that flat rates can become expensive when your card turnover grows.
Custom pricing
Custom pricing means the provider quotes rates based on your business, but they usually consider turnover, sector, card mix, risk and contract length.
Custom pricing could suit:
established businesses
retailers
cafés
restaurants
salons
pubs
clinics
high-volume businesses
multi-site businesses
businesses with steady card turnover
The advantage is that custom rates may be cheaper.
The downside is that quotes can be harder to compare because they include more fee types.
Interchange++ vs Flat Rate Pricing
Pricing Model Pros Cons
Interchange++
Lowest cost long-term
More complex
Flat rate
Simple pricing
Higher fees
Online vs In-Person Fees
Payment Type Typical Fees
In-person
0.3% -1.5%
Online
1.5%- 3%
Debit card vs credit card fees Debit card and credit card fees can be different, especially with merchant account pricing, and are often cheaper because they carry lower risk and lower interchange costs.
Credit cards can cost more because of:
credit risk
rewards programmes
card type
scheme fees
fraud risk
chargeback risk
commercial card use
You should also check rates for:
business cards
corporate cards
premium cards
international cards
American Express
manually keyed cards
online card payments
Card machine fees vs online payment fees Card machine fees and online payment fees are not always the same.
Card machine fees
Card machine fees apply to in-person payments using:
countertop terminals
portable card machines
mobile card readers
contactless terminals
Chip and PIN machines
EPOS-integrated terminals
These are usually lower risk and often cheaper.
Online payment fees
Online payment fees apply to:
ecommerce checkout
payment links
invoice payments
subscriptions
customer-not-present payments
manually keyed payments
These usually cost more because the customer and card are not physically present.
Provider fee examples Square processing fees Square lists 1.75% per transaction for in-person card payments. Square also lists 1.4% + 25p for UK online card transactions and 2.5% + 25p for non-UK online card transactions.
Square will suit:
cafés
salons
pop-ups
small retailers
mobile sellers
businesses wanting simple flat-rate pricing
businesses wanting POS tools
SumUp processing fees SumUp lists a standard 1.69% transaction fee for card reader payments. SumUp also offers a paid subscription option with lower eligible transaction fees, so they are great for:
sole traders
mobile sellers
market traders
tradespeople
low-volume businesses
simple card reader users
Dojo processing fees Dojo advertises a 1.2% blended transaction rate for businesses below £100,000 annual card turnover, with custom rates available above that, making them good for:
cafés
restaurants
salons
pubs
retailers
growing SMEs
businesses wanting modern terminals and quote-based pricing
Worldpay processing fees Worldpay offers tailored custom pricing for card machines, with variable pricing options and no joining fee and can suit:
established SMEs
retailers
hospitality businesses
businesses needing in-person and online payments
higher-volume merchants
Other providers to compare
You should also compare:
Barclaycard
Elavon
TakePayments
Tyl by NatWest
Lloyds Cardnet
Clover
Zettle by PayPal
Stripe
PayPal
The best provider depends on your turnover, transaction type and business setup.
Best pricing model by business type
Business type
Best pricing model to compare
Sole trader
Market trader
Pay-as-you-go card reader
Mobile hairdresser
Flat-rate reader or Tap to Pay
Tradesperson
Mobile card reader or payment links
Café
Card machine quote or EPOS-integrated payments
Restaurant
Portable card machines and EPOS integration
Pub or bar
Custom pricing and fast settlement
Salon
Card reader, EPOS or merchant account quote
Retail shop
Merchant account or card machine provider
Online shop
Ecommerce payment gateway
B2B service provider
Payment links, invoices or virtual terminal
High-volume business
Custom merchant account pricing
Seasonal business
Avoid long contracts unless savings justify it
How to Reduce Card Processing Fees You can lower your costs by:
Comparing providers regularly
Switching to interchange++ pricing
Increasing transaction volume
Negotiating better rates
Avoiding unnecessary add-ons
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FAQs – Card Processing Fees UK What are card processing fees?
Card processing fees are the charges businesses pay to accept debit card, credit card, contactless, online and mobile wallet payments.
What is the average card processing fee in the UK?
Many small businesses pay around 1.69% to 1.75% for simple in-person card reader payments. Higher-volume businesses may be able to negotiate lower custom rates.
What is a good card processing fee?
A good fee depends on your turnover. Around 1.69% to 1.75% may be fine for low-volume businesses, but businesses processing thousands per month should compare custom quotes.
Why are credit card fees higher than debit card fees?
Credit cards often cost more because they carry higher risk, credit provision costs, rewards costs and chargeback risk.
What is the cheapest way to process card payments?
For low-volume businesses, a flat-rate card reader may be cheapest. For higher-volume businesses, custom merchant account pricing may work out cheaper.
What is interchange++ pricing?
Interchange++ pricing separates the interchange fee, scheme fee and provider markup. It can be more transparent and may be cheaper for higher-volume businesses.
What is blended pricing?
Blended pricing combines card processing costs into one agreed rate. It is simpler, but may be less transparent than interchange++.
Are online card processing fees higher?
Usually, yes. Online, payment link, virtual terminal and manually keyed payments often cost more than in-person card machine payments.
Are there hidden card processing fees?
Yes. Hidden or extra fees can include PCI fees, authorisation fees, terminal rental, chargeback fees, statement fees, settlement fees and cancellation fees.
Can I negotiate card processing fees?
Yes, especially if your business has higher card turnover or you have competing quotes.
Do small businesses pay higher fees?
Small businesses often pay higher percentage fees because they have lower turnover and less negotiating power, but comparison can still reduce costs.
Is Square cheaper than SumUp?
It depends on your payment type and turnover. SumUp’s standard card reader fee is lower than Square’s standard in-person fee, but Square may offer better POS tools for some businesses.
Is Dojo cheaper than Square or SumUp ?
Dojo may be cheaper for some businesses, especially if card turnover is high enough to benefit from its blended or custom pricing. Compare quotes using your monthly card revenue.
Are card machine fees tax-deductible?
Card processing fees are usually allowable business expenses, but businesses should confirm treatment with their accountant.
Do I need a merchant account?
You may need a merchant account or merchant services provider if you want custom pricing, higher-volume processing, card machines or more advanced payment support.
How often should I compare card processing fees?
Compare at least once a year, before contract renewal, or whenever card turnover changes significantly.
👉 Compare quotes to instantly reduce your costs
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Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
