If you’ve recently received a letter or email from your payment provider saying your card processing charges are going up, you’re definitely not alone.
Many businesses across the UK are seeing price increases as payment providers pass on higher costs linked to Visa and Mastercard changes. It can feel frustrating, especially when every cost already matters, but it doesn’t automatically mean your business has to simply accept the rate rise.
In fact, a rate rise letter can be a useful prompt to pause, review what you’re paying, and check whether there’s a better option available.
Why are prices increasing?
Visa and Mastercard regularly review the fees they charge within the payments network. When those costs change, acquiring banks and payment providers may choose to pass some or all of the increase on to merchants.
For businesses in sectors such as hospitality, retail, leisure and professional services, even a small increase can add up over the course of a year.
But here’s the good news…
We know from working across the whole UK payments market it is still highly competitive.
Payment providers are all competing for businesses like yours. Many are offering sharper pricing, better tech, faster settlement, integrated EPoS options and improved support for businesses willing to review their current payment arrangements.
So, if you are one of the unlucky people who has received a price increase notification, it doesn’t mean you’re stuck. It’s the perfect time to see what else is out there.
Competition creates opportunity
One of the biggest misconceptions in payments is that switching provider is difficult, disruptive or not worth the effort.
In reality, switching is often far simpler than many businesses expect. Terminals can usually be replaced quickly, integrations can often be maintained, and the changeover can be managed with minimal interruption to day-to-day trading.
More importantly, the potential savings can make a review well worth your time.
We regularly see businesses reduce their payment costs simply by up to 40%.
Here to help
One recent example came from the hospitality sector. The customer had been paying £2,912 per month for card processing. After receiving a rate rise letter, their monthly bill was set to increase to £3,643 per month.
Following our review, their new monthly bill reduced to £1,980 per month. A saving of £932 per month against what they were already paying, £1,663 per month, against their new pricing.
In simple terms, that’s annualised savings of £19,956.
Don’t just focus on the headline rate
When reviewing your payment costs, it’s important to look beyond the advertised transaction rate.
A few questions worth asking are:
- Are you paying Customer not present, E-Commerce , Non-qualified or International surcharges?
- Have authorisation or PCI compliance fees increased?
- Are terminal rental costs still competitive?
- Are you receiving the level of support your business needs?
- Does your payment solution still meet the way your customers want to pay?
The lowest headline rate isn’t always the lowest overall cost, so it’s worth looking at the full picture.
The bottom line
If you’ve received a letter advising that your charges are increasing, don’t panic.
Use it as an opportunity to understand exactly what you’re paying, what’s changing, and what other options may be available.
In today’s competitive payments market, loyalty isn’t always rewarded, but informed decisions often are.
A simple review could help your business reduce costs, improve the customer experience and make sure your payment solution is working as hard as you are.
At acceptcards®, we compare the market on your behalf, helping you understand your options without the complexity. Whether you choose to stay with your current provider or move to a new one, an independent view means you can make that decision with confidence.
After all, when providers are competing hard for customers, it makes sense to check that your business is getting the best possible deal.
If you have been informed of a rate rise, drop us an email to info@acceptcards.co.uk and we’ll make sure you are on the best deal.
