Card Acquiring Fees Explained


A contactless card reader is a great investment. But make sure you understand exactly what you’re paying for

 

 

Handepay Card Payment Machine being held with Switch & Save on the screen

If you’re thinking of using a contactless card reader, one of the things - probably the biggest thing - you’ll want to know, is how much it will cost you.

It’s only natural.

Knowing the cost of the machine itself is important, plus the individual transaction rates you’ll pay for each card type.

 

Fees you are charged will vary according to the terminal acquiring provider – we are here to help you understand what these fees and charges are and what they mean for you. We will always make sure the fees you are charged are clear and transparent before you enter into any sort of agreement for card services.

If you want to get a free quote and see how much a contactless card reader might cost, click here.

Minimum monthly service charge (MMSC)


When you’re choosing a merchant services provider, look out for a minimum monthly service charge.

These are typically between £10 - £30 per month and is the minimum monetary value of transaction fees you pay each month.

If you accept any less than this, you’ll still be required to pay the minimum amount.

Many businesses accept well over this amount every month so aren’t affected, but this can prove very costly for some companies.

A minimum monthly service charge especially affects businesses who don’t accept many card payments or accept low value transactions.

 

Contactless card payment taking place

 

 

Contactless payment taking place

Authorisation fees


When your customer makes a card payment, the acquiring bank and card scheme (eg. Mastercard) perform checks to make sure it hasn’t been lost or stolen, and that your customer has enough in their account to pay.

Some merchant service providers add an authorisation fee to each purchase, to cover these checks.

An authorisation fee is charged whether the transaction is successful or unsuccessful, and will likely be between 1 and 5p, rather than a percentage of the full transaction.

 

 

Online reporting fees


Contactless card readers offers you the opportunity to oversee your payments in much more detail than when using cash.

Thanks to their technology, they can create detailed reports on payment activity, value and volume.

Online payment reporting tools can be invaluable to predicting sales trends and monitoring your cash flow.

Merchant services providers are well aware of this and may charge you a fee to use these features.

Look out for unnecessary costly charges for these vital tools and choose a provider who offers them as part of your existing contract.

 

Laptop screen showing reporting and graphs

 

Green tick for compliance

PCI DSS compliance


Making sure you accept payments securely is highly important when running a business.

It’s vital to protect your customer’s data to prevent fraud.

Known as PCI DSS (Payment Card Industry Data Security Standards), they are a mandatory requirement for any business using card machines.

Some providers charge a monthly or annual fee to keep your business PCI DSS compliant.

Whether they offer you help with demonstrating that you are compliant, or assistance with filling in PCI forms, these charges can be huge.

 

Handepay only works with acquiring providers who do not charge you anything to remain PCI compliant.

PCI DSS non-compliance

 

If your business fails to remain PCI DSS compliant, some providers add fees for non-compliance. These can be small monthly fees, but in some instances businesses could face large additional charges per month, which could also be calculated as a percentage of your monthly turnover, meaning the more higher value of transactions you do, the more non-compliance fees you have to pay.

 

This makes it vital to fully understand PCI DSS regulations when accepting card payments. We work with providers who ensure PCI non-compliance fees are manageable and can help provide you with the support you need to remain PCI compliant.

 

Red cross for non compliance

Joining fees


Whether you want to switch providers, or start using a contactless card machine for the first time, look out for joining fees.

These could be a standard set-up fee, or could be charged as installation fees.

Often, these fees are totally unnecessary, and choosing a provider who doesn’t add them can save you money during initial set up.

 

Choose Handepay to get the most out of your contactless card machine investment


The above fees can come as a shock if you don’t know about them when signing a new contract.

Now you’re in the know, make sure to ask any providers you’re considering whether they add any of them.

Did we mention, if you choose us as your contactless card machine supplier, you won’t pay any of these fees?

With Handepay it’s simple:

• Accept contactless payments including Apple Pay, Google Pay & Samsung Pay
• Take card payments tailored to suit your business needs
• No fees for PCI DSS compliance


 

Switch & Save logo





Need a contactless card machine?


Get in touch with us to find out more today!

Financial disclaimer:

Handepay Ltd is authorised and regulated by the FCA for consumer credit under FRN 673564. Handepay is a credit broker not a lender. Handepay receives commission from the credit provider for each successful introduction it conducts.

Terminal hire contracts are provided by Merchant Rentals Limited, who is authorised and regulated by the Financial Conduct Authority for Consumer Hire under FRN 720500. Terminal hire can be for consumer hire and non-regulated hire contracts. Please check your contract carefully for details. Regulation of all consumer hire fall under the control of the FCA.

Handepay is not an acquirer. Your acquiring service provider will depend on the service package you choose to receive through Handepay. Handepay acts as an introducer of card acquiring services on behalf of the card acquiring service providers which include Lloyds Bank plc trading as Cardnet and EVO Payments UK.

Lloyds Bank are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Cardnet is a registered trademark of Lloyds Bank plc.

EVO Payments UK is the trading name of EVO Payments UK Ltd, a payment institution that is authorised and regulated by the Financial Conduct Authority (FRN number 959332).

Editorial disclaimer:

The information we provide does not constitute financial advice and might not apply to your business. Always carry out research into your business’ needs when choosing a new merchant services provider.

Sometimes, we link to other third-party websites to provide you with additional information. At the time of publication, we consider the information accurate, however, we do not have control over their content and are not responsible if any information on these websites change.

The products we display on our website are for illustrative purposes only - if your business requires additional facilities, you may receive a different model than advertised. All of the information contained on this website, including fees, services and functionality, are correct at time of publishing. E&OE.