Card Machine Costs Explained

When businesses compare card machine providers, the first thing they usually look at is the transaction rate — the percentage charged on each card payment. While this is important, it is only one part of the overall cost. Understanding the full picture helps you avoid surprises and make a more informed decision.

Transaction rates

The transaction rate is the fee charged on each payment. Rates can vary depending on how the payment is taken — in person, online or by manually entering card details. In-person contactless or chip and PIN payments typically attract lower rates than online or keyed-in transactions.

Some providers offer a single flat rate, while others vary the rate by card type or transaction method. Understanding which model a provider uses helps you estimate your actual costs more accurately.

Hardware costs

Card machines themselves carry a cost. Depending on the provider, hardware may be:

• Purchased outright — a one-time cost to own the terminal
• Rented or leased — an ongoing monthly fee for the equipment
• Included as part of a bundle — hardware provided with the service, but the cost may be reflected elsewhere

The cheapest option depends on how long you plan to use the terminal and how your business operates. A business that expects to upgrade hardware frequently may prefer rental, while a stable fixed-location business may benefit from purchasing.

Monthly fees and minimums

Some providers charge monthly account fees, minimum transaction fees or service charges. A minimum monthly charge means you pay a set amount even if your transaction volume is low in a given month. For seasonal businesses or those with variable income, this can add up.

When comparing providers, ask whether there is a monthly minimum, what it is, and how it is calculated.

Settlement and funding

Settlement time — how quickly funds reach your bank account after a transaction — is not a direct cost, but it affects your cash flow. Some providers offer next-day settlement, while others may take two to three business days. Faster settlement may come with an additional fee, or it may be included as standard.

Additional charges to watch for

Other costs that may apply include:

• Non-sterling transaction fees for international cards
• Chargeback or dispute fees
• PCI compliance fees
• Setup or onboarding fees
• Early termination fees if you exit a contract early

The value of a review

Comparing the full cost picture across multiple providers can be complex. A payment review with Mosaic helps you understand the costs that apply to your situation and compare suitable options from providers including Shift4, Square, Teya and myPOS.

To arrange a review, contact Mosaic or call 07751 992246.

Want help reviewing your payment setup?

Make an enquiry with Mosaic Payment Processing. Brenton will review how your business operates and compare suitable provider options.

Not sure which provider is right for your business?

Make an enquiry and Mosaic will help you compare suitable options.