A card transaction costs a percentage plus, at most providers, a fixed number of pence. Published rates here run from 0.79% to 1.75% and published fixed elements from 2p to 11p. On a small basket the pence dominate; on a large one the percentage does. Comparing on the percentage alone gets the answer wrong for one of those two.
How much do card machines charge per transaction? Two baskets worked
On a 4 pound sale, 1.69% is 6.8p and a 5p fixed charge takes it to 11.8p, which is 2.95% of the sale. On a 60 pound sale the same pair is 1.01 pounds plus 5p, or 1.77%. A cafe and a restaurant on identical terms therefore pay very different effective rates, and each should shop on the basket they actually take.
Where the rate stops applying
Every published figure covers a UK consumer card presented in person. Commercial cards, American Express and overseas cards are surcharged, sometimes by a full percentage point or more. Lopay states an extra one percent for each of those categories. A business near an office park or a tourist site should model its mix rather than the headline.
Charges that are not per transaction
Minimum monthly charges, PCI compliance fees and account fees that apply below a turnover threshold. Teya prints a fee that applies when monthly card turnover falls below a stated level; Lloyds Cardnet prints a minimum monthly charge. For a seasonal business those quiet months are exactly when a fixed charge hurts, so ask about them before signing.
Questions people ask about credit card transaction fees
How much are card machine transaction fees?
Published in-person rates run from 0.79% to 1.75%, with fixed elements of 2p to 11p per transaction at most providers. What you actually pay depends on your average basket and your card mix.
Do shops get charged for contactless payments?
Yes, at the same rate as any other in-person card payment. Contactless is a presentation method, not a card type, and every provider here charges its in-person rate whether the customer taps or inserts, plus any fixed pence element the provider prints.
Do card machine fees differ for debit and credit?
Underneath, yes, because UK interchange is capped lower on consumer debit cards. Most providers blend them into one advertised rate, so the difference is invisible unless the provider prices the categories separately.
Are there fees when the machine is not used?
At some providers. Minimum monthly charges and low turnover fees apply whether or not you trade, which matters most to seasonal businesses.