How to reduce card payment fees for your business
Most UK businesses can cut their card processing costs without changing anything customers can see. These are the nine places the money usually is, in the order worth checking them.
1. Read a statement, not a quote
A quote shows the best case. Your statement shows what actually left your account. Everything below starts there.
2. Attack the authorisation fee first
It is charged per transaction, so it is the cost that scales with how busy you are rather than how much you take. Moving from 9p to 2p on 400 transactions a month saves £28 a month — £336 a year — before a single percentage point changes.
3. Check your PCI fee and your compliance status
PCI should be a few pounds a month. If you are also being charged a non-compliance fee because the annual questionnaire was never completed, that can be £10 to £45 a month for nothing at all. Ten minutes fixes it.
4. Look at the business card rate, not just debit
Commercial and corporate cards carry the highest rate by some distance. If you serve other businesses, even a small share of business cards moves your blended cost more than you would expect.
5. Find your contract end date
You cannot negotiate well without knowing your exit fee. Ask for the end date and the settlement figure in writing. Many contracts auto-renew quietly, so a diary reminder three months before is worth setting.
6. Stop paying for terminals you no longer use
Spare or seasonal terminals often stay on the bill long after they stopped being switched on. Each one is typically £15 to £30 a month.
7. Question every line marked 'other'
- Minimum monthly service charge
- Gateway or PDQ fee
- Paper statement fee
- Settlement or same-day funding fee
- Chargeback administration fee
8. Know your real average transaction
Fee structures suit different businesses. A high average sale is hurt most by percentages; a low average sale is hurt most by pence-per-transaction fees. Knowing which you are tells you which number to fight over.
9. Compare before you renew, not after
Renewal is the only moment you have real leverage. Run a comparison a couple of months out so the conversation is about numbers you already have on screen.