UK Card Processing Fees Calculator (2024 Rates)

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How to use our calculator

To work out the kind of card processing fees you’ll encounter from various top providers, simply use the free calculator tool below. You only need to answer two questions, and these will help us show you indicative fees for what you’ll pay, including from top providers such as Square, Tide, WorldPay and more, each of whom also provide card reader hardware with associated fees.

If you’re not confident on either question, you can simply click Unsure – though keep in mind, this may limit the results we are able to provide.

Credit Card Processing Fee Calculator

How much revenue does your business make in a typical month?

£50,000

How many transactions per month do you estimate you process?

1,000 transactions

Taking card payments isn’t simply a matter of choosing the best card machine. Any small business that accepts card payments also has to contend with credit card processing fees.

You can expect to pay anything from 1.5% to 3.5% with each payment, depending on the credit card your customer uses. There can also be authorisation fees that cost around 1p to 3p per sale, and merchant service fees of 0.25% to 0.35%.

It’s important to understand the exact rates you’ll be charged each time you take a card payment. To help with this, we’ve built a handy custom card processing fees calculator for merchants, above. We also have all the guidance you’ll need to understand the kind of fees you’ll encounter, throughout this article.

In this article, we cover:

Credit card processing fees calculator
What are card processing fees?
All the fees you’ll pay to process card payments
How to save on card processing fees

What are card processing fees?

These are the charges that you, the business owner, will incur when your customer makes a payment – whether in-person or online – via card. The most common processing fee is the transaction fee that you’ll be charged by your payment processor for every sale you make. These generally sit between 1.5% and 3.5% of each sale, and some processors will also tack on an additional charge of a few pence (typically about 20p).

Be mindful, though, that there’s a whole host of other fees associated with card processing, which we’ve broken down below.

Why are they charged?

You pay payment service providers and card networks whenever a card payment transaction is triggered for the services and technology that’s used to handle the transaction, including safely and securely transferring the payment data needed to get your money from the customer.

Can I avoid paying them?

No. As a small business owner, you’ll want to keep your costs as low as possible. However, since 2018, it is illegal for you to pass these costs onto your customers. As a merchant, it’s your responsibility to bear these costs yourself.

We observed the Zettle card reader in action at Shrubs And Dubs, a shop in Shoreditch, London. Source: Startups.co.uk

All the fees you’ll pay to process card payments

Taking card payments isn’t as straightforward as paying a single fee per transaction. To get the funds, you’ll be subject to a range of costs, even if you’ve signed up with one of the best merchant service providers.

The Square card reader at 'Got That Crystal' shop in London

We tested out the Square terminal, which costs £114 + VAT, at Got That Crystal Healing, a shop in Shoreditch, London. Source: Startups.co.uk

If you don’t know the hidden fees and the average you should pay, you could get stung. We explain these costs in the table below:

Type of fee:	Average cost:	What is it?
Transaction fees	1.5 to 3.5% (can be as low as 0.2% or as high as 6%, but these instances are rare)	The standard fee incurred when taking a card payment, charged by the card network or payment processor for facilitating the transaction. This fee can be higher or lower depending on the type of card used for payment: debit cards tend to have lower fees than credit cards.
Merchant account fees	£10 to £40 per month	A merchant account is the middleman between you and the customer, holding the money while the transaction is verified, before being sent to your business bank account. Some merchant service providers will charge a monthly fee for this service.
Interchange fees	0.2 to 0.3% for consumer cards in the UK, and around 1% to 1.9% for commercial cards	These are the fees charged by the credit card network that issued the customer card (Visa, Mastercard, Amex etc.). UK legislation caps these consumer debit card fees at 0.2% and consumer credit card fees at 0.3% (these caps don’t apply to commercial cards which have higher rates). No need to worry about these fees if you’re using a third party payment processor that issues flat-rate fees (such as Square or Stripe) - the cost will fall under the transaction fee we listed above.
Minimum monthly service fees	£10 to £30 per month	Some payment processors might charge you if your transactions don’t total a certain amount each month. Most businesses will clear the threshold easily – but it can be a concern to those who operate seasonally.
Authorisation fees	1p to 4p per authorisation	The first stage of the transaction process is the card issuer authorising payment. The amount will be dependent on factors like the card type used and your transaction volume. Good to know: businesses that have a high-volume of transactions might be able to negotiate lower authorisation fees.
Card machine prices	£50 to £200 upfront (they can also be leased for around £10 to £30 per month)	To take card payments in person, you’ll need a card machine, like the Square card reader. Price depends on features offered. They can be bought upfront or leased monthly from your payment processor or merchant service provider.
Setup charge	Up to £100 upfront	A one-time fee that might be charged by your payment processor or merchant service provider when you first sign up – like when you join a new gym. It can be up to £100, but this is rare…the majority of payment providers won’t charge you.

Keep an eye out for…

…Payment providers with “free” plans and no contracts or monthly charges. Why? They’re more likely to charge more expensive transaction fees – with an additional ‘per transaction’ cost.

For example Worldpay’s pay as you go transaction fee is 2.75%, plus a 20p per transaction fee on top, but is just 0.75% on its paid monthly plan. If you’re running a coffee shop and moving high amounts of low value sales, these more expensive fees could really eat away at your profits.

How to save on card processing fees

Now you understand all the fees that can cut into your profit, here are our top money-saving tips:

Negotiate your fees. Some payment providers will have flat transaction fee rates, but others, such as takepayments, have quote-based fee structures. If you have a large turnover of high value transactions, you’ll have more negotiating power with providers like Worldpay, whose services are tailored to larger businesses.
Decide if it’s worth going with a free payment processor that charges higher rates, or pay for a monthly contract. Square charges 1.75% for debit card payments, while Worldpay only charges 0.75%. However, the latter also charges a quote-based monthly fee. Based on your monthly transaction volume, you can work out whether it’ll be cheaper for you to pay higher transaction fees, or cheaper fees plus monthly charges.
If you plan to take online payments, make sure your payment provider offers an affordable payment gateway (the software that will be acting as the ‘checkout system’ for your customers).They each come with their own costs and fees, so be sure to do your research into the best one for you.
Be on the lookout for hidden costs, or card-specific fees. You might see a transaction fee rate and assume you’re getting the deal of the century, but if you look closer you might realise there are alarmingly high charges for non-UK cards or commercial cards. Always read the fineprint!
Make sure you follow all the rules to the letter! Chargebacks can have a big impact on your bottom line, and these are mostly incurred if you are not PCI compliant, or don’t provide the product or service as promised. Make sure you understand the regulations that apply to you to avoid costly mistakes.
You could try setting a minimum spend amount for your card transactions. Taking a lot of extremely low value payments and paying fees each time might not actually be financially viable for you.
Encourage cash! It might seem like the UK is becoming a cashless society, but plenty of people still like to pay the old fashioned way. This is the oldest – and simplest – trick in the book for avoiding card fees!

The Sumup card reader at Jerry's, London

We examined the SumUp card reader at Jerry’s, a food and drink stall in Angel, London. Source: Startups.co.uk

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UK Credit Card Processing Fees & Rates Calculator 2024

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