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Opening a merchant services account in the UK: what merchant services fees cover, how merchant services rates are quoted against turnover, and what payment merchant services providers ask for before pricing

A merchant services account is the acquiring relationship that lets you take cards. It is priced on your turnover, your average transaction value and your trade, which is why several UK providers will not quote until you supply all three. Published rates for smaller businesses run from 0.79% to 1.75%.

What a provider asks for before quoting

Twelve month card acceptance, average transaction value and merchant category. Paymentsense's pricing page now asks for exactly those three before it will show anything. Having them ready turns a fortnight of back and forth into one conversation, and lets you put the same question to every provider in the same terms.

Rates against turnover

Several providers publish a threshold where their pricing changes. Tyl by NatWest prints two rates below a stated annual card turnover and says the price becomes custom above it. myPOS prints zero fixed monthly costs below a stated monthly turnover and a bespoke offer above. Knowing which side of a provider's threshold you sit on tells you whether the published rate is even yours.

The fees around the rate

Minimum monthly charges, authorisation fees, PCI compliance and the early termination charge. The Payment Systems Regulator's card acquiring market review identified contract length and exit fees as the practical barrier to switching, so treat those two as part of the price rather than as paperwork.

Questions people ask about merchant services account

What does a merchant services account cost?

Published rates for smaller businesses run from 0.79% to 1.75% of each sale, plus fixed charges. Above a provider's turnover threshold the price is usually bespoke and not published at all.

What do providers need before they quote?

Your last twelve months of card acceptance, your average transaction value and your merchant category. Some also want projected turnover and details of the people who control the business.

Are merchant services rates negotiable?

The acquirer's margin is, particularly above the thresholds where providers stop publishing. Interchange and scheme fees are not, so a negotiation is really about the third layer only.

Sources

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