UK merchant cost planner
Card Processing Fee Calculator
Estimate monthly card processing fees, effective merchant service rate, fee per payment and profit impact from card takings, card mix, per-payment fees and fixed provider charges.
Enter Your Merchant Figures
Your Processing Cost
Enter your provider figures to see the monthly cost.
Fee mix
Consumer card surcharges are restricted in the UK. Use the fee result for pricing, provider comparison and margin checks, not as a blanket customer card charge.
What This Calculator Is For
This card processing fee calculator is for UK merchants who want a clear monthly number from a provider quote or merchant statement. It is useful for shops, cafes, trades, charities, small venues, subscription businesses and service firms that take card payments through a terminal, payment link, checkout, invoice link or mobile reader. The tool separates the main fee types because card processing rarely comes as one clean percentage. A provider may charge a percentage fee, a fixed pence fee per payment, a terminal or gateway fee, a PCI or compliance fee, refund handling costs and dispute fees. If those lines are rolled into one average, a quote can look cheaper than it is.
The result is not meant to name a fair market price. Card fees vary by provider, turnover, risk profile, payment channel, card type, contract term and settlement arrangement. The purpose is to turn your own figures into a cost you can compare. The most important output is the effective fee rate: total monthly card fees divided by monthly card takings. That single rate makes a percentage-only quote, blended quote and statement with fixed extras easier to compare on the same basis.
How To Read A Merchant Statement
A merchant statement normally has several layers. Start with settled card sales and count only the period you want to model. If the statement covers 31 days but you want a normal month, adjust either the sales value or the transaction count. Next, separate consumer debit and credit cards from business, premium, corporate or overseas cards. The latter group often has a higher cost. If your statement already gives a blended rate, enter that blended rate into one rate field and set the card mix to 100 percent for that field.
Then look for fixed lines. A card terminal contract might show rental, minimum monthly service charges, paper statement charges, PCI charges, SIM or connectivity fees, gateway fees, fraud-screening fees, chargeback handling and authorisation pence fees. A small fixed charge can matter more than expected when the average basket is low. For example, a 5p transaction fee is only 0.10 percent on a GBP 50 sale, but it is 1 percent on a GBP 5 sale before the percentage fee is added.
Formula And Method
Weighted rate = in-person share x in-person rate + remote share x remote rate + complex-card share x complex-card rate
Monthly card fees = card takings x weighted rate + payments x pence fee + fixed monthly fees + refund and dispute allowance
Effective fee rate = monthly card fees / monthly card takings
The calculator normalises the three card-mix shares if they do not add to 100 percent. That allows you to enter a rough split from a statement without breaking the calculation. Results are rounded to pennies for money, two decimals for percentage rates and one decimal where a planning ratio would be too noisy at more precision. The calculation does not include VAT by default because provider VAT treatment can differ by line. If your provider charges VAT on a separate rental or admin line and you cannot reclaim it, add the VAT-inclusive value in the fixed monthly fees field.
Worked Examples
| Merchant | Inputs to try | What the result tells you |
|---|---|---|
| Cafe with many contactless sales | GBP 18,000 takings, 1,600 payments, high in-person share, small pence fee and terminal rental. | The fee per payment matters because the average basket is modest. A plan with a lower percentage rate but a high fixed pence charge may not be best. |
| Online retailer | GBP 26,000 takings, 900 payments, mostly remote consumer cards, some business or overseas cards, gateway fee and refund costs. | The effective rate shows whether higher remote rates, refund handling and fixed gateway charges are eating into margin. |
| Trade business paid by invoice link | GBP 9,000 takings, 65 payments, a larger business-card share and low fixed monthly charges. | The average payment is high, so the pence fee matters less. Business-card percentage rates and surcharge rules need close review. |
| Event or market stall | GBP 6,500 takings, 520 payments, mostly in-person cards, a short-term rental or reader fee. | The calculator helps compare reader hire, pay-as-you-go plans and monthly contracts for seasonal trading. |
Provider Comparison Checklist
1. Match the period
Compare one calendar month, one trading month or one annualised estimate. Do not mix a weekly statement with a monthly rental charge.
2. Split card types
Ask whether the quote covers consumer debit, consumer credit, business cards, premium cards, non-UK cards and American Express if you accept it.
3. Add fixed fees
Include terminal rental, gateway access, minimum service charges, PCI or compliance fees, reporting fees and any early termination cost.
4. Test average basket
Run the same plan with your normal number of payments. Fixed pence fees hurt small baskets more than large invoices.
When To Use It
Use this tool when you are comparing a new provider quote, checking whether a merchant statement matches the rate you expected, preparing a price rise, deciding whether a terminal contract is worth keeping, or estimating card costs for a new location or event. It is also helpful when finance staff need a quick fee forecast for budgets. The calculator makes fixed and variable fees visible, so a team can see whether savings should come from a lower percentage rate, fewer exception charges, a different terminal contract or a change in payment method for large invoices.
When Not To Treat It As Final
Do not treat the output as a final provider bill. Real statements can include minimum monthly service charges, authorisation reversals, cross-border fees, scheme fees, refund timing, chargeback outcomes, contract penalties, rental VAT, settlement delays and pricing tiers that are not visible in a headline quote. A payment facilitator may price in a simpler way than a direct acquirer, but the simple price can still include hidden trade-offs such as payout timing or account hold risk. For a signed contract, use the provider schedule and ask for a written explanation of every recurring and exception fee.
UK Surcharge And Customer Pricing Notes
UK consumer payment surcharge rules are a separate issue from your merchant processing cost. GOV.UK guidance explains the rules on payment surcharges, and the 2018 update prohibited traders from adding surcharges for a wide range of consumer payment methods. That means a merchant should be careful before adding a card fee at checkout. The safer planning use of this calculator is to set headline prices, review margins, compare providers or decide which payment methods to offer. Business-to-business payment terms can be different, but you still need contract wording, customer type and legal advice where the amount matters.
If card fees are too high, the answer is not always to pass them directly to the payer. You might negotiate a new acquiring deal, remove an unused terminal, use bank transfer for high-value invoices, improve fraud checks, reduce refunds, combine small repeat payments, or review whether a subscription platform is charging both a platform fee and a processor fee. The effective rate lets you test each option without losing sight of the monthly pound cost.
Common Statement Lines
| Line on quote or statement | Where to enter it | Comment |
|---|---|---|
| Merchant service charge | Relevant percentage rate field | Use the card type rate or a blended rate if that is all you have. |
| Authorisation fee | Pence fee per payment | Enter pence, not pounds. A 4p fee should be entered as 4. |
| Gateway, platform or terminal rental | Fixed monthly fees | Add VAT-inclusive cost if VAT is charged and cannot be reclaimed. |
| PCI, reporting or admin charge | Fixed monthly fees | Include recurring charges when comparing providers. |
| Chargeback or refund handling | Refunds, disputes and extras | Use a normal monthly allowance unless you are modelling a known event. |
| Settlement delay | Do not enter as a fee | It affects cash flow, not the processing fee itself. Review it beside the result. |
FAQs
What is a good effective card processing rate?
There is no single good rate because sector, risk, card mix, turnover, channel and contract terms all matter. Compare offers by entering the same turnover, transaction count and card mix for each provider, then compare the effective rate and monthly pound cost.
Should I enter debit and credit card rates separately?
If your statement gives separate debit and credit rates, use the three mix fields to approximate the split. If you need more detail, run the calculator twice: once for debit-heavy sales and once for credit, business or non-UK card sales.
Why is my fee per payment high?
A high fee per payment often comes from many low-value payments, a high fixed pence fee, low monthly turnover, terminal rental or a high share of remote and business cards. Check the average payment value and fixed monthly charges first.
Can I add the card fee to customer bills?
Be careful. UK rules restrict consumer payment surcharges for many payment methods. Use this calculator to price goods and services, compare providers and protect margin, then check GOV.UK guidance and contract terms before applying any customer charge.
Does the calculator include VAT?
It does not add VAT automatically. Some fee lines may be outside VAT while rental or admin items may be VATable. Enter the real cost you bear. If you cannot reclaim VAT on a fixed line, enter the VAT-inclusive amount.
Sources
- Payment Systems Regulator. (2026). Market review into card scheme and processing fees. https://www.psr.org.uk/our-work/market-reviews/market-review-into-card-scheme-and-processing-fees/
- Payment Systems Regulator. (2021). MR18/1.8 Market review into the supply of card-acquiring services: Final report. https://www.psr.org.uk/publications/market-reviews/mr1818-market-review-into-the-supply-of-card-acquiring-services-final-report/
- Department for Business and Trade. (2018). Consumer rights: payment surcharges. GOV.UK. https://www.gov.uk/government/publications/payment-surcharges
Last reviewed: 14 May 2026.