UK card processing fees: the complete reference
Every verified fact about UK card payment costs in one place — interchange caps, scheme fees, chargeback rules and costs, the surcharging ban, and PCI DSS — each one sourced, dated and kept current as rules change. Built so you don't have to re-research a number you've seen before.
Quick reference
UK interchange caps: 0.2% consumer debit, 0.3% consumer credit. Chargeback response window: 30 days (Visa) / 45 days (Mastercard). Typical chargeback cost: £15–£25, up to £150. Consumer card surcharging: banned since 13 January 2018. Most small businesses' PCI DSS tier: SAQ A (free, self-assessed).
UK interchange fee caps
Quoting the Payment Systems Regulator directly: the UK Interchange Fee Regulation "currently limit[s] interchange fees to 0.2% of the value of a transaction for consumer debit cards (including prepaid cards), and 0.3% for consumer credit cards," where the merchant, acquirer and card issuer are all UK-based.
| Card type | Interchange cap | Covered by regulation? |
|---|---|---|
| Consumer debit card (UK-UK) | 0.2% | Yes |
| Consumer credit card (UK-UK) | 0.3% | Yes |
| Commercial/business card | ~1.65%–1.90% (industry-sourced) | No cap |
| Cross-border UK–EEA, card-not-present | 1.15% debit / 1.5% credit | No cap since Brexit |
Why commercial cards cost more
Commercial/business cards are excluded from the regulated cap entirely. Industry sources put typical commercial card interchange at roughly 1.65%–1.90% — several times higher than the capped consumer rate, which is why B2B-heavy merchants see materially higher effective rates.
The post-Brexit cross-border gap
UK–EEA card-not-present interchange lost cap protection after Brexit; Visa and Mastercard raised it to 1.15% (debit) and 1.5% (credit). The PSR's own market review estimated this costs UK merchants and consumers £150–200 million a year. A long-term cap remedy remains under regulatory consultation.
Interchange cap figures verified directly from psr.org.uk. Commercial card interchange range and cross-border cost estimate are industry-sourced. See the full flat-rate vs interchange-plus guide for how these caps translate into what providers actually charge.
Scheme fees & pricing structure
Every card transaction has up to three cost components: the regulated interchange fee (paid to the cardholder's bank, capped as above), a scheme fee (paid to Visa or Mastercard for using their network — small, but not price-capped), and a processor markup, which is the only genuinely negotiable part of the total.
Flat-rate pricing
One blended percentage on every transaction, regardless of card type. 2026 UK examples: SumUp 1.69%, Zettle 1.75%, Square 1.75%. Simple and predictable, but you overpay on debit-heavy sales to subsidise the blended average.
Interchange-plus pricing
The regulated interchange fee, plus the scheme fee, plus a separate negotiable markup, itemised rather than blended. Industry sources cite an effective cost of roughly 0.4%–1% for debit-heavy merchants — cheaper at volume, but harder to compare without a quote.
Full breakdown, worked examples and which model suits which business: see our flat-rate vs interchange-plus guide.
Chargeback windows & costs
| Fact | Figure |
|---|---|
| Cardholder's window to raise a dispute | ~120 days for most reason codes (often from expected delivery date for online goods) |
| Merchant's window to respond — Visa | 30 days per dispute phase |
| Merchant's window to respond — Mastercard | 45 days |
| Typical cost per chargeback | £15–£25, up to £150 in some cases — plus the reversed sale and usually the non-refunded processing fee |
| "Excessive" dispute ratio — Visa (from 1 April 2026) | 1.5%, combining fraud reports and disputes into one measure |
| "Excessive" dispute ratio — Mastercard | ~1.5%, alongside a minimum monthly disputed-item count |
| Provider with no dispute fee | Square (verified via Square's official UK support pages) |
Chargeback response windows and dispute-ratio programmes reflect Visa and Mastercard scheme rules as reported by multiple payment-industry sources, cross-checked for agreement; your provider's own dispute documentation is authoritative for your specific case. Full context, fraud-type breakdown and a practical checklist: see our payment security & fraud guide.
Regulatory facts
Surcharging ban
Since 13 January 2018 (Payment Services Regulations 2017, Schedule 8), UK businesses cannot add a surcharge for consumers paying by debit/credit card or card-based wallets like Apple Pay or Google Pay. Still permitted on business/commercial cards.
Strong Customer Authentication
An FCA-enforced requirement that most remote card payments verify the customer with two of three factors (something they know, have, or are) — delivered in practice through 3D Secure 2 at checkout.
PCI DSS
Not UK law, but a contractual requirement via your payment provider. Most small businesses using a standard card reader or hosted checkout qualify for SAQ A, a free annual self-assessment, since card data never touches their own systems.
Frequently asked questions
What is the UK interchange fee cap?
0.2% for consumer debit cards, 0.3% for consumer credit cards, set by the UK Interchange Fee Regulation and enforced by the Payment Systems Regulator. Commercial cards aren't covered.
Can I charge customers extra for paying by card?
Not for consumers — banned since 13 January 2018. Still allowed on business/commercial cards.
How much does a chargeback cost?
Typically £15-£25, up to £150 in some cases, plus the reversed sale and usually the non-refunded processing fee.
How long do I have to respond to a chargeback?
30 days with Visa, 45 days with Mastercard. Miss it and the dispute is forfeited automatically.
Do small businesses need PCI DSS compliance?
Effectively yes, though it's contractual rather than statutory. Most qualify for SAQ A, a free annual self-assessment.
Citing this reference
This page is maintained as a single, up-to-date source for these figures — we re-check it as regulations and scheme rules change, rather than letting it go stale like a one-off blog post. If you're writing about UK card processing costs and find this useful, a link back to this page is appreciated so your readers land on the current version rather than a cached copy.
Ready to compare providers against these numbers?
See how published UK rates stack up against the regulated caps above.
Sources: UK interchange caps verified directly from the Payment Systems Regulator (psr.org.uk). Surcharging ban per the Payment Services Regulations 2017 (Schedule 8), effective 13 January 2018. Chargeback windows, dispute-ratio programmes and PCI DSS requirements reflect Visa/Mastercard scheme rules and PCI Security Standards Council guidance as reported by multiple payment-industry sources, cross-checked for agreement. Commercial card interchange range, cross-border cost estimate, and interchange-plus effective cost range are industry-sourced estimates, not government-verified figures. Provider rate examples checked directly against official UK pricing pages. This page consolidates figures already sourced in detail on our flat-rate vs interchange-plus, payment security & fraud and reduce processing fees guides — see those pages for full context and further sourcing detail. This page is general information, not legal, regulatory or financial advice. See our Editorial Policy.