Running your own business is hard enough, without hidden costs eating into your margins. Yet many UK SMEs are unknowingly paying more than they should for card payment solutions. Why? Because some payment providers use tactics that disguise the real cost of accepting card payments.
At PayNetWorx, we believe in transparency. So, let’s break down the five most common tricks we see in the industry—and how to avoid them.
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Blended Pricing Hides True Costs
Many providers offer a “blended rate” that combines Interchange charges (levied by the card issuer), Scheme Fees (levied by Visa and Mastercard) and processing Charges (levied by the processor) into one simple percentage. Sounds easy, right? But it disguises the actual costs associated card types.
What to do: Ask for an interchange-plus model or a full breakdown of your statements and question any charge you were not made aware of.
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Monthly Minimum Fees You Didn’t See Coming
Your provider may require you to meet a minimum processing amount each month. If you fall short, you’re charged a top-up fee—money down the drain for quiet months.
What to do: Choose a provider like PayNetWorx with very low or zero minimum monthly fees and pricing that adapts to your business. You can also ask your provider what the MMSC is (Monthly Minimum Service Charge) so you’re clear of what’s on your bill.
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Tiered Rates That Look Good on Paper
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Some merchant account providers use tiered pricing that only shows you the best-case scenario rates. In practice, most of your transactions fall into higher, costlier tiers.
What to do: Request a detailed transaction breakdown and get a second opinion before signing.
4. Long-Term Contracts with Expensive Exit Fees
Locked into a long contract and paying thousands to exit? Sadly, it happens more often than you’d think. The maximum term for a new card payment machine rental agreement is 18 months. Be suspicious of anyone who tells you this isn’t so.
What to do: Look for flexible contracts or short-term rolling agreements—especially if you’re a growing business. If there’s a closure fee to switch provider, make sure to ask if this is payable if you exit the next contract early also.
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Mark-Ups on Hardware and Setup Costs
Free terminals that aren’t really “free,” or hidden costs buried in setup invoices? Classic tactics.
What to do: Always request a written breakdown of all fees—hardware, installation, maintenance, and PCI compliance.
How PayNetWorx Is Different
We don’t hide behind technical jargon or inflated pricing. As a UK-based payment processing company focused on small and medium businesses, we offer:
- Transparent pricing
- No hidden fees
- No long-term lock-in contracts (is this true?)
- Support that’s honest and human
Want to see how your current provider compares? We’ll analyse your recent statements and show you exactly where you’re overpaying—with no obligation.
You can also check out our online calculator where you’ll get an instant quote on what you could be paying! (add link)
Final Thought
Don’t fall for the tricks. The right partner won’t just process your payments—they’ll protect your profits.