Effective rate
The effective rate is the total amount a merchant paid in card processing costs over a period, divided by the total card turnover in that period, expressed as a percentage. It is the only figure that allows a fair comparison between providers.
Include everything: transaction fees, fixed pence, monthly plan or minimum charges, PCI fees, terminal rental, authorisation fees.
A provider advertising 1.29% with a £15 monthly minimum and a £6 PCI fee can easily have a higher effective rate than one advertising 1.6% with neither.
The figure moves with your average basket. Fixed pence dominate on small transactions and become irrelevant on large ones, so a rate that suits a café rarely suits a plumber.
Why it matters to you
This is the number to ask any salesperson for, and the number to check on your own statement afterwards. Everything else is marketing.
Work out what you’re actually paying.
Whatever your statement calls it, the only figure that matters is total cost divided by total takings. Our calculator works that out from your own numbers.
Open the calculator