Merchant Account: UK 2026 Pricing & Fee Calculator
A merchant account is the bank facility that lets a business accept card payments. This page explains how traditional merchant account pricing works, using typical UK figures rather than one provider.
What Merchant Account charges
| Fee | Rate |
|---|---|
| Blended in-person rate (typical) | About 1.4% to 2.5% |
| Monthly service charge (typical) | About 10 to 25 pounds |
| Authorisation fee | A few pence per transaction |
How the fees work
A merchant account sits between your card terminal or gateway and your bank, settling card takings into your business. Traditional merchant accounts are usually priced one of two ways: a blended rate (one percentage covering all consumer cards, simple but slightly higher) or interchange-plus (the wholesale interchange fee plus a fixed markup, more transparent and usually cheaper at volume).
The figures here are representative, not a single company price. On top of the transaction percentage you typically pay a monthly service charge, a small per-transaction authorisation fee, PCI compliance fees and sometimes a minimum monthly charge. Contracts can run 12 to 48 months with early-exit fees.
Modern pay-as-you-go providers (Square, SumUp, Stripe and similar) bundle the merchant account, gateway and processing into one flat rate with no contract, which is simpler for most small businesses. Use the named provider pages on this site for exact, sourced pricing.
Check the official pricing
Fees change. Confirm the current rate at UK Finance card payment data.