How to reduce card payment fees for your business
Most businesses pay more for card payments than they need to, and the extra is usually hiding in the small print. Here’s where to look, and what to ask.
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When I sit down with a business owner and go through their card statement, the headline rate is rarely the problem. The cost is in everything around it: per-transaction fees, terminal rental, monthly charges and contract terms nobody remembers agreeing to. That’s exactly why I started Craig Ashcroft Payment Solutions: to take away the hidden costs buried in other providers’ contracts.
1. Know what you’re actually paying for
Pull out a recent statement and look for each of these lines. Not every provider charges all of them, but most charge several.
- Transaction rate: a percentage of every card payment. It usually differs between debit, credit, business and international cards.
- Authorisation fee: a few pence on every transaction, whatever its size. On a business with lots of small sales, this adds up fast.
- Terminal rental: a monthly charge per card machine.
- Monthly or minimum service charges: fixed fees, or a top-up when you don’t hit a minimum spend.
- PCI compliance fees: charged for card security paperwork, and sometimes a penalty if it isn’t completed.
- Contract terms: the length of the contract and the cost of leaving early.
2. Compare the total cost, not the headline rate
A low percentage can hide a high authorisation fee, and vice versa. The only fair comparison is the total you’d pay each month for your mix of sales: your turnover, your average transaction value and your card mix. A café taking lots of £4 payments and a garage taking a few £400 ones need very different pricing.
You can get a ballpark figure with the calculator on our homepage, or send me a statement for a free, line-by-line savings review.
“He was open and honest about things – you know, these are the prices. Very fair pricing, very competitive.”
Sam Livesey, Director, Livesey’s Butchers, Preston Market
3. Check your contract before you switch
Many businesses stay with an expensive provider because they’re worried about exit fees. Dojo could cover your exit fees up to £3,000, subject to your annual card turnover. I’ll check your current terms before you decide anything.
4. Cut the costs you don’t see on the statement
Some of the most expensive payment problems never show up as a fee:
- Downtime: if your machine relies on Wi-Fi and it drops, you lose sales. Dojo machines switch to 4G automatically.
- Keying errors: typing amounts into a standalone machine leads to mistakes. Integrating with your EPOS removes them, and Dojo connects to 450+ EPOS systems.
- Slow queues: Dojo payments are typically approved in under 2 seconds†, so busy periods move faster.
5. Get one person to deal with
When something goes wrong, a call centre and a ticket number cost you time. My clients get one point of contact: me. If I miss your call, I ring straight back.
Questions
Accountant or adviser? Introduce your clients to Craig and earn a referral fee when they sign up. Become a partner →
Related: Free savings review · Payment products · Livesey’s Butchers case study · Our vision: no hidden fees
Find out what you could save
Send me a recent statement and I’ll show you, line by line, where your money is going.