The honest answer
The cheapest card processing depends on your business. A flat pay-as-you-go percentage may work well for low or irregular volume. An established merchant may get a lower total through a tailored quote. Online, in-person and phone payments can also carry different costs.
Any page naming one permanent cheapest provider without your transaction data is answering the wrong question.
Use an effective-cost comparison
Add every processing and fixed charge for the period, then divide the total by card turnover. This gives an effective rate for comparison, but keep one-off hardware and exit costs visible rather than burying them.
The inputs that change the winner
Transaction count
Fixed per-transaction charges hit many small sales differently from fewer large sales.
Card mix
Consumer, commercial and international transactions do not necessarily cost the same.
Payment channel
In-person, online and remote payments may have different pricing and risk.
Fixed commitment
Terminal, gateway, minimum and service fees matter most in quieter months.
Build a like-for-like monthly model
| Line | Current arrangement | Option A | Option B |
|---|---|---|---|
| Transaction charges | From statement | Apply written rates | Apply written rates |
| Fixed transaction charges | From statement | Use actual count | Use actual count |
| Terminal and software | Include all devices | Include all devices | Include all devices |
| PCI, minimum and account | Include | Include | Include |
| Gateway/online | Include if used | Include if used | Include if used |
| Contract/one-off | Note remaining exposure | Note setup and term | Note setup and term |
Cheap today, expensive later
A quote can look inexpensive while leaving out a separate terminal contract, a quiet-month minimum, higher rates for less common cards or a price-review clause. Ask for the full summary and agreement before treating it as a saving.
The PSR’s card-acquiring work specifically identified varied headline-rate structures and terminal contracts with renewal and early-termination features as barriers to merchant comparison.
Let us run the comparison
Send a recent statement and Card Payment Connect can help identify the complete cost, compare suitable options and explain the trade-offs. No automatic commitment to switch.
Want to understand what you are actually paying?
Send your latest merchant statement and Card Payment Connect will assess the charges, pricing structure and contract information available.
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About this guide
Published by Card Payment Connect, an independent card-payment consultancy for UK businesses. Reviewed by Matthew McCarthy, who has worked in UK merchant services for over a decade. Last reviewed 11 September 2026.