How Much are Card Fees?
The cost of card processing fees in the UK varies by a couple of percent but all those percentages add up when you have a growing number of transactions each month. The number of products from merchant services providers is also growing apace, but what are the card fees that go on in the background?
When searching for information about card transaction fees we generally find a number of merchant services providers who publish details of various products with fees and monthly tariffs some of which offer “simple” pricing with one fee for all types of card transaction, others offer a limited outline of pricing. In fact, the fees are actually broken down into categories for each type of payment card in circulation together with other fees that may apply to the various transactions made, for example if goods are sold across borders.
A typical statement from a merchant services provider might include charges for transactions from people using a consumer VISA credit card or a commercial debit card from Mastercard, each with a certain percentage charge per transaction. This includes the interchange fees set by card schemes together with fees charged by the acquiring bank and merchant services provider.
Example UK Card Processing Fees
This table shows a generic example of card processing fees you might expect to be charged by a mainstream merchant account provider here in the UK if you’re card turnover is around £600k per month (a number of other fees and charges may apply to some transactions depending on transaction type and circumstance).
A percentage of the fee is given to the issuing bank (the bank of the cardholder) in payment for the transaction at a rate set by the respective card scheme (interchange fees). As a merchant account holder you would also be expected to pay any other fees outlined in your contract. However, it should be borne-in-mind that once above a minimum monthly volume of transactions the major portion of merchant services fees relate to card processing transactions.
|Visa Dr Com Intl||2.1%|
|Visa Dr Per Int||1.175%|
|Mastercard DR Com Int||2.1%|
|Mastercard Corporate/Dr Int||2.1%|
|Dr Mastercard EEA||0.54%|
|Visa Credit Personal||1.175%|
|Visa Debit Com||1.84%|
|Visa Debit Per||0.54%|
|Debit Mastercard Comm||2.1%|
|Mastercard Debit Per Int||1.175%|
|Mastercard DR Per Int||1.175%|
|Mastercard Cr Per||1.175%|