Behind Every Transaction
Every time a customer makes a payment—whether by card, online, or through a mobile wallet—there are small costs involved in processing that transaction. These are known as transaction fees, and they’re a routine part of doing business in today’s digital payment landscape. Understanding what these fees are, who charges them, and why they exist is key to staying on top of your business expenses and choosing the right payment provider.
So, What Actually Are Transaction Fees?
Transaction fees are the charges a business incurs each time it processes a card payment. These fees typically consist of two components: a percentage of the transaction amount—usually between 1.5% and 3.5%, though it can sometimes reach as high as 6%—and a fixed fee, typically around 20p per transaction. While these charges may seem small, they apply to every payment, meaning they will add up quickly—especially for businesses with high transaction volumes. Although fees are usually agreed upon at the start of a contract, merchant providers have the ability to change them mid-term, so it’s important to review your agreement regularly.
Transaction Fees in Action
To see how transaction fees can impact your business, let’s break it down with a simple example. Imagine a customer makes a purchase worth £100, and your provider charges a 2.5% transaction fee plus a fixed fee of 20p. For that single transaction, you’d pay £2.50 (2.5% of £100) + £0.20, totalling £2.70 in fees. Now, if your business processes 1,000 transactions worth £100 each, those fees quickly scale up—resulting in £2,700 paid in transaction fees alone. This example highlights just how quickly these costs can add up, and why choosing a provider with competitive rates is crucial to protecting your profit margins.
How Bespoke Merchant Solutions Helps
At Bespoke Merchant Solutions, we understand how quickly transaction fees can eat into your profits—especially for small and medium-sized businesses. That’s why we offer rates as low as 0.30%, with an average fixed fee of just 4p per transaction. By significantly lowering both the percentage and fixed fee, we help businesses reduce their payment processing costs and retain more of their hard-earned revenue. It’s just one of the many ways we’re committed to delivering smarter, more cost-effective payment solutions.
Final Thoughts
Transaction fees may be an unavoidable part of accepting card payments, but that doesn’t mean you have to settle for high costs. Understanding how these charges work—and knowing that more affordable options exist—can make a real difference to your bottom line. At Bespoke Merchant Solutions, we’re here to help you take control of your payment processing with transparent pricing, lower rates, and expert support. If you’re ready to start saving on every transaction, it might be time to make the switch.
