What are the fees associated with payment processing?

 

 

Many small businesses are often put off from accepting card payments due to payment processing fees. Here at UTP, we do all we can to keep these costs as low as possible. We offer some of the lowest transaction rates in the industry and can tailor these rates to suit your business.

 

What is a transaction rate?

Transaction rates are charged for each transaction you process. These rates can vary depending on whether your customer pays by credit or with debit card. The type of business and your average transaction value will also play a part in determining your transaction rates.

Our credit card rates start at 1%, and our debit card rates start at 0.35%. *

 

What is an authorisation fee?

This is a small fee that your business will pay when a card transaction is verified and approved. It ensures the payment will go through by checking the card’s validity.

We charge 3p for card authorisation. *

 

What monthly fees will I pay processing card payments?

Many card processing companies charge a monthly rental fee for the use of card machines. This price will vary depending on the card machine that you choose to take payments with.

At UTP, our monthly terminal fee starts at £20 per month. *

 

What are the PCI-Compliant fees

To handle cardholder data securely, your business must be Payment Card Industry compliant (PCI-Compliant).

We are Payment Card Industry Data Security Standard (PCI DSS) compliant. This means we have enhanced payment security controls to reduce payment card fraud for your business and the cardholder. Where applicable, we charge £4.80 for PCI Compliance to businesses.

 

What are chargeback fees?

A chargeback occurs when one of your customers requests a refund. Instead of approaching your business, the customer goes directly to their bank. The bank will then typically withdraw the money from your business for the purchase and refund it to the customer. The chargeback fee covers the costs of investigating and processing the dispute.

A chargeback costs an average of £9. *

 

What are early termination and cancellation fees?

If you decide to terminate your contract before the agreed-upon date, you will be charged an early termination fee. Depending on your card processing company, who will have their own way to calculate the termination sum.

 

What is an interchange fee?

The interchange fee is charged by the issuing bank (your customer's bank). This charge occurs as soon as the issuing bank sends the payment to the acquiring bank (your bank). The interchange fee is for maintaining the transparency and integrity of the payments ecosystem. It also helps fund the future of payments, making them more secure, convenient, and faster.

Although Visa and Mastercard set the rates, they do not receive any of the fees. This is a charge to the card processing company, not to your business.

 

What is an assessment fee?

An assessment fee, also known as a 'pass-through' fee, is paid to the card network that processes the transaction. In the UK, this is commonly Visa, Mastercard, and American Express. This fee helps card networks with research, development, and marketing of their brand. The assessment fee is charged to the acquiring bank.

 

*Based on a standard 18-month contract with a card turnover of below £150k. These prices are typical but may vary.