Choosing a Card Payment Provider: Rates and Fees Explained
Card payment pricing is notoriously confusing, with several fees bundled into one rate. Understanding the components helps you compare providers fairly and avoid surprises on your statement.
Understand the three parts of every card fee
Most card transaction costs break down into interchange (paid to the card-issuing bank), scheme fees (paid to Visa or Mastercard), and the provider's own margin. Some providers quote a single blended rate; others itemise each part (interchange-plus).
Interchange-plus pricing is usually more transparent because you can see exactly what the provider is adding on top.
Match the terminal to how you trade
The right hardware depends on your setup:
- Countertop terminals for fixed tills and shop counters
- Portable terminals for table service in hospitality
- Mobile (pay-as-you-go) readers for markets, deliveries and pop-ups
- Integrated terminals that talk to your EPOS to avoid keying errors
Watch for the costs beyond the rate
The transaction rate is only part of the picture. Check terminal rental, minimum monthly service charges, PCI compliance fees, authorisation fees and settlement times. A low rate with high fixed costs can work out more expensive for a smaller business.
Frequently asked questions
What is a good card processing rate?
It depends on your card mix and volume rather than a single number. Focus on the total cost of accepting payments — rate plus all fixed fees — and insist on a clear breakdown before signing.
How quickly will I get my money?
Settlement times vary by provider. Next-business-day settlement is widely available; confirm it in writing as part of your agreement.
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