Key Takeaways
- Choose EPOS with payment provider flexibility
- Get quotes from multiple providers
- Negotiate based on your transaction volume
- Review rates annually—don't accept auto-renewals
Quick Answer
Card processing fees are a significant business cost. By choosing EPOS that doesn't lock you into one provider, negotiating competitive rates, and understanding fee structures, UK businesses can save thousands per year on payment processing.
Payment processing costs add up fast. On £500,000 annual card turnover, the difference between 1.5% and 1.0% processing is £2,500 per year. This guide explains how your EPOS choice affects payment costs and how to minimise fees.
Payment Cost Impact
| Annual Turnover | At 1.5% | At 1.0% | Annual Savings |
|---|---|---|---|
| £100,000 | £1,500 | £1,000 | £500 |
| £250,000 | £3,750 | £2,500 | £1,250 |
| £500,000 | £7,500 | £5,000 | £2,500 |
| £1,000,000 | £15,000 | £10,000 | £5,000 |
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How to Reduce Processing Costs
- ✓ Choose EPOS with payment provider flexibility
- ✓ Get quotes from multiple providers
- ✓ Negotiate based on your transaction volume
- ✓ Review rates annually—don't accept auto-renewals
- ✓ Consider interchange-plus pricing at higher volumes
- ✓ Ensure EPOS integration to avoid keyed-entry surcharges
Red Flags That Cost You Money
- EPOS that only works with one payment provider
- Bundled EPOS + payment contracts
- Providers who won't quote transparent rates
- Long contracts with early termination fees
- Hidden charges for specific card types
- Additional fees for contactless or online payments
Frequently Asked Questions
What's a competitive card processing rate?
Rates vary by business type and volume, but most UK SMEs should aim for 1.0-1.5% blended rate for face-to-face transactions.
Should I use integrated or standalone terminals?
Integrated terminals connected to your EPOS avoid keyed-entry surcharges and reduce errors—usually worth the integration.
How often should I review my rates?
At least annually. Providers often increase rates at renewal. Get competitive quotes to negotiate or switch.
Does higher volume mean better rates?
Generally yes. Use your volume as leverage in negotiations, especially if approaching common tier thresholds.
Bundled vs Independent Payment Providers
Many UK businesses discover too late that their EPOS-bundled payment deal isn't competitive. Understanding the difference can save thousands annually.
Bundled Payments Often:
- Hide higher transaction rates in the monthly fee
- Restrict your ability to negotiate rates
- Lock you into long-term payment contracts
- Increase rates after promotional periods
- Make switching providers difficult or expensive
Independent Payment Providers:
- Allow rate comparison and negotiation
- Enable switching without changing EPOS
- Often offer lower blended rates
- Provide more transparent fee structures
- Support multiple acquirers for backup
EPOS Direct works with any UK payment provider including Dojo, Global Payments, Teya, Worldpay, and others—giving you full control over your payment costs.
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