In short: Hidden card machine fees can include authorisation fees per transaction, PCI DSS non-compliance charges, monthly minimums, terminal rental, early exit fees, and chargeback fees when a customer disputes a payment. Some providers also charge more for premium or commercial cards. Always read the full pricing before signing up.
The advertised rate is the bit they want you to see. These are the charges that quietly turn up on the bill - and how to avoid being caught out.
The usual suspects
- Chargeback fees (often £10–£20) when a payment is disputed
- PCI compliance or non-compliance fees on traditional merchant accounts
- Per-authorisation fees on top of the percentage
- Minimum monthly service charges below a turnover threshold
- Early termination fees on fixed contracts
- Higher rates on premium, commercial and international cards
How to protect yourself
Ask for the full fee schedule in writing, not just the headline rate. Favour no-contract providers if you're unsure, and check whether 'free' instant payouts are actually free.
FAQs
What is a chargeback fee?
A chargeback fee is charged when a customer disputes a payment and asks their bank to reverse it. Many providers add an administration fee per chargeback on top of refunding the sale. Keeping clear receipts and proof of delivery helps you challenge unfair disputes.
What is a PCI DSS non-compliance fee?
PCI DSS is the security standard for handling card data. Some providers charge a monthly fee if you do not complete their compliance questionnaire or meet the requirements. Pay-as-you-go providers usually build compliance in, so you avoid this charge entirely.
Why is my card machine charging more for some cards?
Some providers charge higher rates for commercial, business or premium reward cards, and for cards issued outside the UK or EU, because they cost more to process. Flat-rate providers like Square and Zettle avoid this by charging one rate for all cards.
Reviewed by Nathan Keeble - Founder, The POS
Independent UK payments research. We research the pricing, read the small print and write it up in plain English.