Take Card Payments | Merchant Services

Overview

Understanding card processing fees is essential for managing your payment costs and protecting your bottom line. This checklist breaks down the key fee categories—including Merchant Service Charges, Interchange Fees, and Gateway Fees—so you can see exactly where your money goes. You'll learn how different pricing models (like Blended or Interchange++) impact your costs, what to ask providers before signing a contract, and how to compare offers side-by-side. Whether you're just starting out or looking to optimise your current setup, this guide helps you make informed, confident decisions when accepting card payments.

Merchant Service Charge (MSC)

A percentage fee deducted from each card transaction.
Varies depending on the card type (e.g., debit, credit, premium, or corporate cards).
May be tiered by volume or fixed by your agreement with the provider.
Typically ranges from 0.3%–2.5% per transaction.

Interchange Fees

A fee paid to the cardholder's bank (the issuer).
Set by card networks like Visa and Mastercard.
Covers costs like fraud prevention and transaction processing.
Rates vary by card type, region, and transaction method (in-person vs. online).
Example: debit card interchange might be 0.2%, while credit can exceed 0.3% (UK/EU).

Card Scheme Fees

Charged by the card networks (e.g., Visa, Mastercard, Amex) for using their infrastructure.
Applied per transaction and often passed on by the acquirer.
Covers network maintenance, security, innovation, and risk management.
Scheme fees fluctuate by card type, region, and provider.

Acquirer Fees

Charged by your acquiring bank or payment processor.
Covers services like settling transactions, managing accounts, fraud monitoring, etc.
May be flat or variable, often bundled with other fees (in blended pricing).

Gateway Fees (if applicable)

Applies to eCommerce and online payments.
Charged by the payment gateway provider that facilitates online authorisations.
Can be a monthly fee (e.g., £10–£30) plus per-transaction charges (e.g., £0.10–£0.25).
May include optional features: tokenization, 3D Secure, fraud tools, etc.

Terminal Rental Fees

Monthly or annual cost of renting a physical card terminal (PDQ machine).
Prices vary based on terminal type (mobile, countertop, wireless).
Typical range: £10–£30/month per terminal.
Some providers include terminals for free with premium packages.

Minimum Monthly Service Charge

The minimum amount you must pay each month in processing fees.
If your total fees fall short, you pay the difference.
Ensures the provider recoups a basic return, even if sales are low.
Commonly set between £10–£25/month.

PCI Compliance Fees

Charged for maintaining PCI DSS (Payment Card Industry Data Security Standards).
Ensures your business follows security protocols to prevent card fraud.
May include monthly support fees, annual assessments, or non-compliance fines.
Cost: usually £30–£120/year, or £5–£10/month.
Read our detailed PCI Compliance Checklist document HERE

Chargeback Fees

A penalty fee applied when your customer disputes a transaction.
Covers the admin cost of handling the dispute, regardless of outcome.
Standard chargeback fees: £10–£25 per incident.
Excessive chargebacks can lead to higher risk classification or account suspension.

Setup & Integration Fees

One-time costs for setting up your merchant account or integrating payment tools.
Includes technical setup, customisation, API integration, etc.
Some providers offer free onboarding, others may charge £50–£300+ depending on complexity.

FEE CHARGING SCENARIOS FOR YOUR BUSINESS

Pricing Structures: Blended Pricing

A single, all-in % rate (e.g., 1.75%) that includes:

Interchange fees
Card scheme fees
Acquirer margin

Simple to understand and predict, ideal for new or small businesses.
May be less cost-efficient for high-volume businesses or those processing many debit cards.

Pricing Structures: Interchange++ Pricing

Breaks charges into 3 parts:

Interchange fee (card issuer)
Scheme fee (card network)
Acquirer margin

More transparent and cost-effective for businesses with:

High volume
Multiple card types
International sales

Allows you to see exactly where your money is going.

Pricing Structures: Flat Fee Per Transaction

Charges a fixed amount per transaction, regardless of value or card type (e.g., £0.20).

Often used by payment facilitators like Square, Zettle, or SumUp.

Most providers don't only use a flat fee model, especially in the UK/EU (e.g., 1.75% + £0.20)

The model is predictable, which is why it's sometimes favored by micro-merchants and startups.

Easy to forecast but less scalable for high-volume/high-value transactions as your business grows.