The cost of taking payments can include more than one charge. Compare a provider using your likely transaction sizes, payment methods and contract terms, then check how those fees appear in your records. A single advertised percentage is not enough to describe every business’s bill.
The useful bits
- Separate the product subscription from payment-processing charges.
- Compare percentage, fixed and other applicable charges using the same sales pattern.
- Keep the gross payment, deducted fees and bank payout distinguishable.
Identify what each charge pays for
The Payment Systems Regulator explains that a merchant service charge can contain several components, including interchange. The price offered to you may bundle costs together or list them separately. Use the provider’s actual terms to identify what applies to your account.
Separate transaction fees from the subscription for the business software. Ask about any additional fixed charges, equipment costs, contract commitments, currency conversion, refunds or disputes. These are comparison questions, not a claim that every provider charges for every item.
Compare the same set of payments
Write down an ordinary month’s number of payments, total value and typical payment size. Keep in-person and online payments separate if the quoted pricing differs. Include the card or customer categories that matter to your business rather than assuming every transaction uses the lowest advertised rate.
Then ask each provider what that exact pattern would cost. Keep the quotation date and conditions with the calculation. A lower headline percentage may not be lower overall when fixed charges or a different transaction mix are included.
- Number of successful payments and their total value.
- Typical small and large payment amounts.
- Relevant payment methods and card categories.
- Any fixed monthly or per-payment charges.
- Refund, dispute and cancellation terms.
- Payout timing and any applicable payout charges.
Understand the arithmetic before comparing quotes
A percentage fee changes with the payment value; a fixed per-payment fee depends on the number of transactions. That distinction matters if you take many small payments rather than a few large ones.
Use your own provider’s numbers in the same calculation. Include taxes or other charges only as stated in that provider’s pricing; do not assume the fee description means the same thing across every quotation.
Compare two payment patterns
One £100 payment and ten £10 payments both produce £100 of sales. At the same percentage rate, their percentage charges match. But a fixed fee per payment is charged once in the first pattern and ten times in the second. Use the current quoted terms to calculate: percentage charge on £100 + (number of payments × fixed fee). This comparison does not specify a Tender fee or market rate.
Keep the payment and payout connected
Keep the customer’s gross payment amount, any deductions and the bank payout visible in your records. A payout may group several payments together or arrive later. The provider statement should explain the difference, so retain it alongside the bank record.
A smaller payout does not by itself mean the customer underpaid. Check whether the difference is a fee, refund or another adjustment before sending a reminder.
How this relates to Tender’s offer
Tender includes the complete product through your first five successful customer payments. Processing fees still apply during that period. After the fifth payment, you explicitly choose the £7.99/month subscription to continue using Premium actions; Tender does not start the subscription automatically.
The subscription price is not a processing rate. Review the applicable payment fees during setup and keep the provider’s current terms available when comparing costs.
Sources and further reading
Sources checked 28 September 2026. Follow the official guidance for the current rules and how they apply to your business.
