The Truth About Payment Processing Fees (And Why Teya + Seamless Is the Smart Choice)

Don’t be fooled by low headline rates. Many of the leading payment providers advertise attractive rates as low as 0.3% – but what they don’t mention upfront are the hidden fees, limitations, and price hikes that come later.

This guide will help you understand:

  • What payment processing fees really include

  • How “interchange” works (the hidden cost behind the scenes)

  • Why corporate and premium cards cost far more than debit cards

  • How to compare fully loaded pricing across providers

  • And why Teya + Seamless offers unbeatable value

The Illusion of “Low” Card Rates

Providers often promote:

0.3% on debit cards | 0.5% on credit cards

But these usually apply to:

  • UK-issued (domestic) cards only

  • Consumer cards only – not business or premium cards

  • Exclude extra charges like PCI compliance, auth fees, and hardware rental

In reality, your total cost is often much higher.

What Is Interchange?

Interchange fees are the base fees set by card networks (Visa, Mastercard, etc.). They’re paid by your provider to the customer’s bank.

But they are just the starting point. Your provider still adds:

  • Card scheme fees (network fees paid to Visa/Mastercard)

  • Their own markup (profit margin paid to your provider e.g. Teya)

You only see the final rate — but it includes all of the above.

Real Interchange Rates (Examples)

Card Type

Transaction Method

Interchange Fee

UK Consumer Debit (Visa)

Card Present

0.20%

UK Consumer Credit (Visa)

Card Present

0.30%

Visa Corporate Card

Online (CNP)

1.85%

Mastercard Business Card

Card Present

1.60%

Mastercard Corporate (Intl)

Online

2.00–2.50%

Amex Small Business

Any

1.90%+

These fees are fixed by the networks and updated quarterly.

The Real Cost of a £100 Corporate Card Sale

Let’s break down what happens when a customer pays with a Visa corporate card online:

  • Interchange: 1.85% = £1.85

  • Card scheme fees: £0.10

  • Provider markup: 0.3% = £0.30

  • Total cost to you: £2.25 (2.25%)

That’s more than 4x higher than the 0.5% headline rate.

Typical "Fully Loaded" Rates (Blended)

Card Type

Interchange

Likely Final Rate

UK Debit Card

0.2%

0.7%–1.0%

UK Credit Card

0.3%

0.8%–1.2%

Business/Corporate Card

1.5–2.0%

2.0%–2.7%

Premium/Intl Card

2.0–2.5%+

2.5%–3.2%+

If you accept a wide mix of cards — especially corporate, travel, or international — your average rate will be far higher than advertised. Typically this happens in tourist towns and it's why we need your business postcode when we generate a rate.

Common Hidden Fees to Watch Out For

  • PCI compliance fees: £5–20/month

  • Authorisation fees: £0.02–0.06 per transaction

  • Monthly minimum fees: £10–25

  • Terminal rental: £15–30/month

  • Price hikes mid-contract

  • Early exit or cancellation fees: Up to £500

These can quickly turn a “cheap” provider into a very expensive one.

For instance a 5p auth fee on an average transaction value of £20 equates to +0.25% on your baseline rate! 0.5% headline rate becomes 0.75%.

Why Teya + Seamless = Clarity + Value

When you choose Teya and Seamless together, you’re not just saving money — you’re getting a fully integrated, hospitality-ready setup with transparent pricing and no surprises.

Payments:

✅ Accept all Visa & Mastercard cards — including premium, corporate and international
✅ Transparent blended rate — includes interchange, scheme fees and margin
✅ No PCI compliance fees
✅ No authorisation fees
✅ No monthly minimums, no contracts
✅ No hidden charges or price hikes

Hardware:

🖨️ FREE POS hardware bundle worth £470
– Receipt printer
– 14” cash drawer
– Secure iPad stand (iPad not included)

✅ A Teya Pro card terminal – included for free
✅ FREE terminal swaps, even for accidental damage

Software & Support:

🤝 50% off your Seamless POS subscription
✅ Use your own payment processor if needed — total flexibility
✅ Full integration with accounting, loyalty, kitchen screens, and more
✅ Designed by hospitality experts for independent venues

With most providers, you pay extra for flexibility, hardware, support and clarity.
With Teya + Seamless, it’s all part of the deal.

Final Thought: Compare Real Costs, Not Just Headlines

Before choosing a payment provider, ask:

  • What is the total cost including all fees?

  • Are all card types included in the quoted rate?

  • Are there any rental or compliance charges?

  • What happens to my rate in 6 months?

  • Can I cancel easily?

When you ask the right questions, you’ll see just how strong this Teya + Seamless offer really is.

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