Every card payment costs you something, usually a percentage plus sometimes a fixed fee per transaction. The total is made up of interchange, which goes to the card issuer, scheme fees to the likes of Visa and Mastercard, and the acquirer's own margin. Interchange on UK consumer debit and credit cards is capped, but the acquirer's slice is negotiable, and commercial or overseas cards cost more. Flat-rate providers are simple and suit small venues, while blended or interchange-plus pricing usually works out cheaper once turnover grows.
Watch for terminal rental, monthly minimums, PCI compliance charges and long contracts with exit fees. Surcharging consumers for paying by card is banned in the UK, so the cost has to sit in your prices. Get quotes using your real statements, check how quickly funds settle, and remember that tips taken on card carry the same fee, which affects how you run tronc.
What we ask on the show
- Is it worth switching card providers to save a fraction of a percent?
- Why can't venues add a card surcharge?
- Who should pay the card fee on tips?
- Are flat-rate payment apps a good deal for small venues?