Card Processing Fees: UK Pricing and Rate Guide

Card processing fees are one of the least transparent costs in business. Your provider quotes a headline rate, but your actual cost depends on card type, transaction method, and monthly charges you might not have noticed.

We’ve built the comparisons below to cut through this. Whether you’re on a flat-rate plan and wondering if you’re overpaying, or evaluating a volume plan for the first time, the numbers below will tell you where you stand.

How Card Processing and Transaction Fees Work

Every card transaction has three cost layers:

• Interchange fee: paid to the card issuer (customer’s bank). Set by Visa or Mastercard. UK consumer cards: 0.2% debit, 0.3% credit. Commercial cards are higher and not capped.
• Scheme fee: paid to Visa or Mastercard for network access. Currently 0.1%–0.3% depending on card type and transaction value.
• Acquirer margin: the payment processor’s profit on the transaction. On flat-rate plans, all three are bundled. On interchange-plus plans, you see the margin separately.

For a full breakdown with examples, see Card Processing Fees Explained.

Current Card Processing and Payment Rates in the UK

Current published rates for UK businesses (May 2026):

• In-person (flat rate): SumUp 1.69%, Square 1.75%, Tide Card Reader 1.75%
• Online (flat rate): Stripe 1.5% + 20p, Square 1.9%, PayPal 1.2%–2.9%
• Volume plans: Dojo from £39.99/month + custom rate; Takepayments custom rate from £9.95/month; Worldpay from £19.95/month
• Direct Debit (GoCardless): 1% + 20p, capped at £4/transaction

Hidden Card Payment Fees to Watch For

Transaction rates are only part of your processing cost. When you’re comparing providers, we always check for these additional charges that don’t appear in the headline rate:

• PCI compliance fee: £2–£5/month. Some providers waive it if you complete your annual SAQ. Others charge a higher non-compliance fee if you don’t.
• Chargeback fee: £15–£28 per disputed transaction, regardless of outcome.
• Minimum monthly service charge (MMSC): a floor fee if your transaction revenue falls below a threshold. Common on contracted accounts.
• Early termination fee: can reach £500+ on long-term contracts. Always read the exit clause before signing.
• Hardware rental: some providers quote a low transaction rate but charge £15–£30/month terminal rental on top.

Finding the Cheapest Card Processing for Your Volume

The cheapest card payment provider for your business depends on monthly turnover. Here’s how to think about it:

• Under £1,000/month: flat-rate providers (SumUp, Square) are cheapest — no monthly fee and no minimum.
• £1,000–£5,000/month: flat-rate still competitive; compare total cost (including any monthly fees) before switching.
• £5,000–£15,000/month: monthly-fee plans from Dojo and Takepayments start to win on transaction rate savings.
• Over £15,000/month: negotiate directly; interchange-plus rates under 0.5% are achievable.

See our detailed volume-based comparison at Cheapest Card Processing.

Scheme Fee Changes and Card Payment Cost Trends

Card processing costs have risen for UK merchants since 2022. Visa and Mastercard have increased scheme fees multiple times, adding an estimated £200m+ in annual costs across UK businesses. If your effective rate has crept up without any change to your contract, scheme fee increases are likely the cause.

The PSR launched a review and introduced the ITC (Interchange and Transparency Commitment) remedy in 2026, which caps scheme fee increases for SMBs processing under £50m/year. We track current benchmarks in our UK Card Processing Fee Benchmarks.