Credit card processing is charged as a percentage of each sale, often with a fixed pence element on top. Published UK in-person rates in this index run from 0.79% to 1.75%. What varies far more than the headline is what happens to commercial cards, American Express and cards issued outside the UK, where surcharges of a full percentage point or more are normal.
Credit costs more than debit, and most rates hide it
Interchange on a UK consumer credit card is capped higher than on a debit card, so the underlying cost genuinely differs. Most providers blend them into one advertised number, which means a debit heavy business subsidises a credit heavy one. myPOS prints its rows separately by card origin, and Viva.com states the interchange components it applies, which is as close to an itemised bill as this shelf gets.
The fixed pence element
Several published rates carry a fixed charge per transaction as well as a percentage: myPOS at 7p, Tyl at 5p, Tide at 3p or 11p depending on the plan, Revolut Business at 2p. On a 3 pound coffee a 5p fixed fee is worth more than half a percentage point. Businesses with small average sales should compare the total cost of a typical basket, not the percentage.
What a processing quote must contain
The in-person rate for UK consumer debit and credit, the rate for commercial and non UK cards, the authorisation fee, the minimum monthly charge, the PCI fee if any, the term, and the early termination charge. Ask for all seven in writing. The Payment Systems Regulator's market review found that terminal contracts and exit fees are what actually stop merchants switching.
Questions people ask about credit card processing
What is a good credit card processing rate in the UK?
For a small business on a blended rate, anything at or below the middle of this index's published range is competitive; the median printed in-person rate here is 1.5%. Below 1% usually means either a subscription plan or an interchange plus structure whose real cost depends on your card mix.
Why is my effective rate higher than the one I was quoted?
Because the quoted rate covers UK consumer cards presented in person. Commercial cards, American Express, overseas cards, keyed transactions and refunds are charged differently, and the fixed pence element weighs more heavily on small sales.
Is interchange plus cheaper than a blended rate?
Sometimes, and it depends entirely on the cards your customers use. Interchange plus passes through the real cost and adds a margin, which suits a business with heavy debit traffic and can cost more where commercial or overseas cards are common.