When a card is presented, the terminal encrypts it and sends the transaction to your acquirer, which routes it through the card scheme to the customer's bank for an authorisation. That round trip takes about two seconds. The money itself moves later, in a settlement batch, and arrives net of three separate fees that together make up the rate you are quoted.
Credit card payments for business: authorisation, then settlement
Authorisation is a yes or no: the issuer confirms funds and reserves them. Settlement happens afterwards, usually overnight, when your acquirer submits the day's batch and the money moves. That is why a sale can appear on the terminal at 6pm and in your account the following working day, and why a refund takes longer than a payment to appear on the customer's statement.
The credit card payment system: three layers inside your rate
Interchange goes to the customer's card issuer and is capped for UK domestic consumer cards. Scheme and processing fees go to Visa or Mastercard. What remains is your acquirer's margin. Viva.com's own page states the interchange component it applies for domestic transactions, and Adyen prices interchange plus explicitly, which is why its published figure looks so much lower than a blended rate.
Why a credit card costs you more than a debit card
Interchange on a UK consumer credit card is capped higher than on a debit card, so the underlying cost is genuinely different. Most providers on this shelf blend the two into one advertised percentage, which means debit heavy businesses subsidise credit heavy ones. Providers that price the two separately look more complicated and can be cheaper if your customers mostly use debit.
Other questions people ask
What is the usual card machine settlement time in the UK?
Most UK providers settle the next working day as standard, and several sell faster settlement as a paid feature. Lopay prices its account tiers on exactly that: how quickly a business wants its money. Check the standard timing rather than the advertised one.
What is an authorisation fee?
A small fixed charge some acquirers add per authorisation request, on top of the percentage. Lloyds Cardnet's own worked example shows it separately from the service charge. It is easy to miss and matters most to businesses with lots of small transactions.
Who actually holds my money between the sale and the payout?
Your acquirer or the payment institution behind it. Some providers settle into a business account they open for you rather than into your existing bank, which changes when you can move the money and what your bookkeeping looks like.