The Till School
The terminal · Course · Lesson 01
01

Your rate is three prices wearing one coat

Before you compare quotes, learn the three parts every card payment is built from. Two of them are not set by your provider at all.

Module
1
What we count
The merchant service charge on your statement is interchange, pl…
Checked
2 Sep 2026
What we are counting

The merchant service charge on your statement is interchange, plus scheme and processing fees, plus your acquirer's markup.

The merchant service charge on your statement is interchange, plus scheme and processing fees, plus your acquirer's markup. Only the last one is a negotiation.

61%
of all UK payments were made by card in 2023, and cards carried almost 86% of the value of retail transactions
PSR, market review MR22/1.10 · checked 2 Sep 2026
How it works

Three things to hold on to.

  1. Interchange goes to the bank that issued your customer's card. In the UK it is capped by law for consumer cards.
  2. Scheme and processing fees go to Visa or Mastercard. They are not capped, and they have been rising.
  3. The acquirer's markup is what your provider keeps. This is the part a quote is actually about.
Task before opening time

Take last month's statement. Write down the total you paid and the total card turnover. Divide one by the other. That single percentage is what the next five lessons take apart.

Reference

The three parts, side by side

Your rate is an addition sum. Three parties take part in it, and only one of them picks up the phone when you ring to argue.

PartWho keeps itSet byCan you move it
InterchangeThe bank that issued your customer’s cardRegulation, for UK consumer cardsNo. It is capped
Scheme and processing feesVisa or MastercardThe card schemesNo, but you can see them under IC++
Acquirer markupYour providerYour contractYes. This is the whole negotiation
PSR, the IFR · PSR, MR22/1.10 · last read 4 Sep 2026. These figures are set by regulation, not by your provider, so this table changes only when the rules change.