Hidden Fees to Watch for on UK Card Machine Contracts

Common hidden fees on UK card machine contracts: PCI compliance fee (£5 to £15 a month), authorisation fee (1 to 5p per attempted transaction), chargeback fee (£15 to £25 per dispute), minimum service charge (some acquirers bill a minimum even on zero-trading months), statement fee (£3 to £5 a month for paper), and FX margin (2 to 3 per cent on foreign card payments). Ask for the full rate card before signing, the headline percentage is rarely the whole cost.

What this means for your business

The headline transaction percentage on a UK card machine quote is rarely the total cost. Acquirer contracts layer in multiple smaller fees that together can add £30 to £100 to the monthly bill on top of the percentage. PCI compliance fee is the most common and is sometimes bundled, sometimes separate (Worldpay typically separates it, Dojo bundles). Authorisation fee is charged per attempted transaction whether the transaction succeeds or declines, this can add 1 to 5p per attempt.

Chargeback fee applies per disputed transaction at £15 to £25 regardless of outcome. Minimum service charge applies on some traditional acquirer contracts (Worldpay, Elavon, Barclaycard) where the merchant is billed a minimum monthly even if zero transactions process. This is the acquirer covering fixed costs on dormant accounts. Statement fee applies for paper statements (£3 to £5 a month) and is usually waived on email-only delivery.

FX margin applies on foreign card payments. A UK customer paying with a UK-issued card has no FX involvement. A US customer paying with a US-issued card sees an FX conversion from USD to GBP for settlement, and the acquirer takes a 2 to 3 per cent margin on the conversion. This is on top of the standard transaction percentage. Tourist-heavy businesses (London hotels, gift shops in tourist areas, airport retail) see significant FX margin volume, ask for an FX rate or a dual-currency settlement option.

Key points

PCI compliance fee £5 to £15 a month, sometimes bundled, sometimes separate
Authorisation fee 1 to 5p per attempted transaction (success or decline)
Chargeback fee £15 to £25 per dispute regardless of outcome
Minimum service charge applies on some accounts even in zero-trading months
Statement fee £3 to £5 a month for paper, usually waived on email
FX margin 2 to 3 per cent on foreign card payments
Total hidden fees can add £30 to £100 to the monthly bill on top of percentage

Common pitfalls

Comparing headline percentages only, the hidden fees can flip the cheapest provider
Forgetting the chargeback fee, high-dispute verticals see this add up fast
Signing a contract with a minimum service charge while still pre-launch, the minimum runs from activation
Not asking for an FX rate quote when running a tourist-heavy business

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