Key Takeaways
- Interchange fee: Paid to the card-issuing bank (0.2-0.3% debit, 0.3-0.9% credit)
- Scheme fee: Paid to Visa/Mastercard (small percentage)
- Acquirer fee: Your payment processor's cut
- Provider markup: What your EPOS company adds on top
Quick Answer
UK card machine fees typically range from 1.2% to 2.5% per transaction for debit/credit cards. Fees include interchange (card scheme), acquirer fees, and provider markup. Some EPOS bundles include competitive rates, while others charge separately.
Card processing fees directly impact your profits. Understanding how these fees work helps you negotiate better rates and choose EPOS packages that offer genuine value for UK businesses.
What Makes Up Card Fees
- Interchange fee: Paid to the card-issuing bank (0.2-0.3% debit, 0.3-0.9% credit)
- Scheme fee: Paid to Visa/Mastercard (small percentage)
- Acquirer fee: Your payment processor's cut
- Provider markup: What your EPOS company adds on top
Typical UK Card Processing Rates
| Card Type | Low Rate | Average Rate | High Rate |
|---|---|---|---|
| UK Debit Cards | 0.5% | 1.0-1.4% | 1.75% |
| UK Credit Cards | 0.9% | 1.5-2.0% | 2.5% |
| Amex | 1.5% | 2.5-3.0% | 3.5% |
| Contactless | Same as card type | Same | Same |
| Apple/Google Pay | Same as card type | Same | Same |
Choose How You Buy Your EPOS System
UK businesses choose EPOS in different ways depending on budget and growth plans:
EPOS Without Ongoing Software Subscriptions
Many EPOS providers lock businesses into monthly software fees. EPOS Direct offers a buy-once-own-forever option, allowing retail and restaurant owners to avoid long-term subscriptions and keep full control of their system.
Buy Once & Own Forever – From £999 →No software subscriptions • Retail & Restaurant EPOS
Need help choosing the right EPOS system?
Questions to Ask About Card Fees
- ✓ Is the rate blended or interchange-plus?
- ✓ Are there minimum monthly fees if I don't process enough?
- ✓ What are the rates for each card type separately?
- ✓ Will rates increase after an introductory period?
- ✓ Are there fees for chargebacks or refunds?
- ✓ Is there a monthly terminal rental fee on top?
Card Fee Mistakes to Avoid
- ✗ Focusing only on the headline rate without checking all card types
- ✗ Not reading the fine print about rate increases
- ✗ Ignoring monthly minimum fees if you're a low-volume business
Frequently Asked Questions
What is a good card machine rate in the UK?
Under 1.5% for debit and under 2% for credit is competitive for small businesses. High-volume businesses can negotiate lower.
Do EPOS bundles include card processing?
Some do, some don't. EPOS Direct includes card processing in their £49 bundle. Others charge separately or require specific providers.
Can I use my own card machine with any EPOS?
It depends on integration. Some EPOS systems only work with specific card terminals. Check compatibility before buying.
Are contactless fees higher than chip and PIN?
No, contactless and chip & PIN fees are typically the same. The card type (debit vs credit) determines the fee.
How do I reduce my card processing fees?
Process higher volume, negotiate regularly, avoid premium cards where possible, and compare providers annually.
Already have software? Buy EPOS hardware only
Buy EPOS Hardware – Best UK Prices →Touch terminals • Printers • Scanners • Cash drawers • Scales
Ready to Choose Your EPOS System?
Related Guides
How Much Does an EPOS System Cost in the UK?
A complete EPOS system in the UK typically costs between £49 and £1,500+ depending on whether you buy outright or pay mo...
EPOS System Hidden Costs: What Providers Don't Tell You
Hidden EPOS costs include contract exit fees (often £2,000+), premium support charges, software update fees, payment pro...
Buy EPOS Outright vs Monthly: Which Is Better?
Buying outright costs more upfront (£800-£2,000) but saves money long-term with no contracts. Monthly payments spread co...