Start with a clear baseline
You cannot reduce a cost you cannot measure. Before you negotiate, switch or restructure anything, calculate your effective rate across the last three months of statements. That single number is the reference point every subsequent conversation should return to.
Unsure what these charges mean on your own statement? Submit it for a free independent review.
Check If I'm OverpayingSix practical steps
Calculate your effective rate
Total fees ÷ total card turnover. Know your starting point.
Review every 18–24 months
Markets move. Rates set years ago are rarely still competitive.
Align the terminal contract
Sync renewal dates so you can review both at once.
Complete PCI on time
Avoid recurring non-compliance fees.
Watch for blended-pricing inflation
If commercial / international cards are a big share of turnover, consider Interchange Plus.
Negotiate, don't just switch
A credible benchmark is often enough to bring your existing rate down.
The order matters
The biggest and fastest saving is almost always terminal rental, because it is a fixed cost you are paying whether you trade or not. Next is the monthly account fee, then PCI non-compliance, then authorisation fees on low-ticket sales, then the transaction rate itself.
Attacking the transaction rate first is intuitive but rarely the biggest lever - a 0.1 percentage point rate cut on £15,000/month is only £15. Removing a £30 terminal hire is £30 without any negotiation at all.
When switching genuinely wins
Switching wins when your incumbent will not negotiate, when your contract is genuinely uncompetitive by more than about £75/month, or when your business model has changed materially (added online, added a second site, moved to higher-ticket B2B).
In every other case a credible written quote presented to your existing account manager will get most of the saving with none of the switching risk.
Frequently asked questions
How much can a typical SME save?
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Will my provider retaliate if I ask for a better rate?
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How long does negotiating take?
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Key takeaways
- ●You usually don't need to switch to save money - a credible benchmark often does the job.
- ●Small recurring fees add up. PCI, minimum, terminal and authorisation deserve attention.
- ●Attack fixed costs before the transaction rate - the savings are bigger and faster.