Why merchant statements are so hard to read
A typical UK merchant statement bundles transaction rates, scheme fees, terminal hire, PCI compliance and a handful of smaller line items into a single monthly invoice. The headline rate quoted at the start of your contract is rarely the rate you actually pay.
Understanding each line is the first step to knowing whether your account is competitively priced.
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Start free reviewThe main line items to look for
Transaction rate
The percentage charged per card payment. Often varies by card type - consumer, commercial, international.
Authorisation fee
A small fixed fee per transaction, usually a few pence, charged on top of the percentage.
Terminal rental
Monthly hire for your card machine, often on a separate, longer agreement.
PCI compliance
Annual fee plus a monthly non-compliance fee if you don't complete the self-assessment.
Minimum monthly service
A floor charge if your processing volume falls below a stated level.
Scheme and interchange fees
Pass-through costs set by Visa and Mastercard. On Interchange Plus pricing these appear separately.
How to calculate your effective rate
Total card fees ÷ total card turnover × 100 = your effective rate. This is the single most useful number to know. A headline rate of 0.65% is meaningless if your effective rate is 1.7%.
Key takeaways
- ●Always calculate your effective rate, not just read the headline rate.
- ●Terminal hire often sits on a separate agreement and may outlast the merchant contract.
- ●Small recurring line items can add up to more than the headline rate itself.