Card processing fees for UK hospitality businesses explained

Card processing fees for a UK hospitality business are made up of three layers: interchange, which goes to the cardholder's bank; scheme fees, which go to card networks such as Visa and Mastercard; and the margin of the acquirer or payment provider that processes the payment. Interchange on UK consumer cards is capped at 0.2% for debit and 0.3% for credit on domestic payments. Scheme fees and the provider's margin have no cap, and neither does interchange on commercial cards paid from a business account.

Providers then present those costs in one of two ways. A blended rate rolls everything into one price, such as a percentage plus a fixed fee per payment. Interchange plus plus (IC++) passes interchange and scheme fees through at cost and shows the provider's margin as a separate line.

What makes up a card processing fee?

The acquirer pays interchange and scheme fees and passes them on to you, either itemised or inside a blended rate. Under the Interchange Fee Regulation, acquirers also have to give merchants information about the cost of accepting different card brands and categories, which helps when you compare offers.

What are the UK interchange fee caps?

Where the caps apply, interchange is limited to 0.2% of the transaction value for consumer debit cards, including prepaid cards, and 0.3% for consumer credit cards. They cover payments where the merchant, the acquirer and the card issuer are all in the UK. The Payment Systems Regulator (PSR) sets out the rules for merchants on its IFR guidance pages.

Commercial cards paid from a business account fall outside the caps, which is one reason corporate cards used for events, group bookings and business travel can cost more to accept. American Express works differently from Visa and Mastercard, so their interchange tables do not describe Amex costs.

Why do EU cards cost more to accept online since Brexit?

When the UK left the EU, the EU caps stopped covering payments between the UK and the European Economic Area. Visa and Mastercard then raised interchange on card-not-present payments made with EEA consumer cards at UK businesses, from 0.2% and 0.3% to 1.15% and 1.5%. For a hotel or venue, that affects deposits and prepayments taken on your website from guests with EEA cards.

The PSR estimated the increases cost businesses £150 million to £200 million extra a year, and its December 2024 final report concluded that a price cap was the only effective remedy. In October 2025 it dropped plans for an interim cap and consulted on a method for setting a longer-term one. On 15 January 2026 the High Court upheld the PSR's power to cap the fees. No cap level has been set yet, so check the PSR's cross-border market review page for the current position.

What are card scheme fees?

Scheme fees are what Mastercard and Visa charge acquirers for taking part in their schemes, and processing fees cover the authorisation, clearing and settlement of payments. Both are separate from interchange, and neither is capped.

In its March 2025 final report, the PSR found that Mastercard and Visa had raised core scheme and processing fees to acquirers by at least 25% since 2017, costing businesses at least £170 million extra a year. In 2025 it consulted on two remedies: directions requiring clearer information about those fees, and better governance of how the networks set them. The PSR has said it will publish the final directions later this year, and it is consulting separately on a third remedy covering regulatory financial reporting.

Blended rate or interchange plus plus: which pricing suits a venue?

A blended rate is easier to forecast. You know what a £50 payment will cost before you take it, and the provider carries the risk that your card mix shifts towards expensive cards. Some blended rates have different prices for card categories, such as standard and premium UK cards or international cards, so read the full schedule as well as the headline. Stripe's own UK list prices work this way.

Interchange plus plus shows each layer on your statement, and the cost of each payment moves with the card used. It can work out cheaper for venues whose guests mostly pay with UK consumer debit cards, because that interchange is capped at 0.2%, but statements are longer and monthly costs are harder to predict. Ask whether a provider offers it at your volume.

For small tickets the fixed fee matters more than the percentage. At 20p per payment, a £3 coffee pays 6.7% in fixed fees alone, while a £150 dinner pays 0.13%.

What other card charges should hospitality businesses check?

• Refunds: some providers keep the original processing fee when you refund. Stripe's standard UK pricing, for example, does not return it.
• Disputes: a fee per chargeback, and sometimes a second fee to contest it.
• Currency conversion: charged when a payment has to be converted into your settlement currency.
• Authorisations, 3D Secure checks and pre-authorisations for deposits or tabs.
• Terminal purchase or rental, and monthly connectivity for cellular readers.
• Minimum monthly charges, PCI compliance fees and fees for faster payouts.

Surcharging most guests is not an option. Since 13 January 2018, the Consumer Rights (Payment Surcharges) Regulations 2012 have banned businesses from charging a fee for payment by card unless the card is a commercial card. Where a fee on a commercial card is allowed, it must not exceed what accepting that card costs you.

How does Tiquo price card payments?

Tiquo processes card payments through Stripe and charges its own plan rates, so Stripe's list prices for businesses with a direct Stripe account are not what a Tiquo merchant pays. Tiquo's pricing page lists card rates from 1.7% + £0.22 on the Launch plan and from 1.2% + £0.18 on Scale. Actual rates depend on card mix and volume, and Enterprise customers can negotiate custom rates based on transaction volume.

A starting rate is not a quote for every payment. Ask any provider, Tiquo included, for the rates that apply to in-person payments and to premium, commercial and international cards, then price three months of your own payments against them.

Payments in Tiquo are linked to the booking or order they belong to, which makes it easier to match card income to sales when a payout arrives.