Following concerns regarding complex billing structures, the Payment Systems Regulator (PSR) is examining scheme and processing fees charged by card networks.
The initiative aims to improve pricing transparency and lower payment acceptance costs for independent UK merchants, many of whom have reported difficulty understanding the true cost of card payment acceptance.
Background
Card payment acceptance has become essential for UK businesses, with over 83% of retail transactions now made by card or digital wallet. However, the fee structures involved — including interchange fees, scheme fees, acquirer margins, and terminal charges — can be opaque and difficult to compare.
Bank of the West's Position
Bank of the West Merchant Services has always prioritised transparent pricing. Our blended flat-rate pricing (1.65% per transaction) offers simplicity for smaller businesses, while our interchange-plus pricing provides cost savings for higher-volume enterprises.
We believe that clearer industry-wide pricing standards will benefit merchants and ultimately consumers, and we support the PSR's efforts in this area.
What Merchants Should Do
Businesses are encouraged to review their current payment processing arrangements and compare total costs across providers. Bank of the West offers free pricing reviews for any business seeking to understand their payment acceptance costs better.