The three cost layers
Interchange is the portion paid to the customer's card issuer. Scheme fees are charged by the card networks. The acquirer margin is what your provider retains. Together these form the cost of processing a transaction.
Some pricing models present all three as one blended rate; others itemise them. Itemised pricing is more transparent but can look more complicated at first glance.
Not all transactions cost the same
A contactless consumer debit card tapped in store and a commercial credit card entered on a website are treated very differently. Your real cost depends heavily on your mix of card types and how payments are taken.
The charges outside the rate
Terminal rental, gateway charges, monthly account or minimum service charges, authorisation charges and chargeback handling all sit outside the headline percentage. Add them up before comparing.
How to compare fairly
Take a recent monthly statement and calculate the total cost as a percentage of what you processed. That single number is far more useful than any advertised rate.
This article is general information for UK business owners and is not financial or legal advice. For guidance specific to your business, speak to the Ideal Merchant Service team on 020 8514 5898.