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In this scheme fees guide we’ll cover what scheme fees are, who charges them and the typical amounts you can expect to pay for different transaction types.
Scheme fees are one type of unavoidable fees you’ll need to pay when processing card payments.
Scheme fees are unregulated charges that merchant acquirers pay to the operators of card payment schemes such as Mastercard and Visa for the use of their services. The PSR review in May 2024 found that fees charged to acquirers by Mastercard and Visa from 2019 to 2024 have increased by more than 30% in real terms with little to no increase in service quality. It is estimated these rises are costing UK business more than £250 million extra annually .
Merchant acquirers pass the scheme fees back onto the merchant via their Merchant Service Charge (MSC) which also includes interchange fees and the acquirer markup.
These fees cover a multitude of things such as volume fees, licensing fees, marketing & innovation funds, cross-border fees, scheme authorisation fees, scheme fees for reports, AML (anti-money laundering services) and much more.
The fees are different for each card scheme, set by the schemes themselves and periodically reviewed throughout the year. Acquirers, are free to pass these costs on to merchants how they wish but it is important to understand they are non negotiable.
Unfortunately, scheme fees have increased significantly in recent years, posing an additional cost to businesses. Scheme fees differ from interchange fees, which are paid to the card issuing bank rather than the card scheme.
Each card scheme sets its own scheme fees, which are based on the nature of a transaction. Fees will depend on a number of factors, including:
Fees will differ for debit, credit, consumer, business, corporate and purchasing cards.
Card-not-present transactions, such as purchases online or over the phone, tend to incur higher scheme fees than card-present transactions, where cardholders tap their cards on a contactless reader or enter a PIN.
Fees can vary by sales channel, such as websites, mobile app, or physical location.
Scheme fees are higher if the merchant is in a different country from where the card issuer is based. Different card schemes use different definitions for domestic, intra-regional (in the same region) and interregional (between more than one region) transactions, and also charge different fees depending on the transaction currency, adding complexity when comparing the cost of services.
As of 16 October 2021, the UK is no longer part of the European Economic Area (EEA), which in some cases affects scheme fees in the UK for transactions with the EEA.
Scheme fees can be charged as a percentage of the transaction value and/or as a per-item charge. They can also incorporate minimum and maximum values. Some merchant acquirers and independent sales organisations (ISOs) include scheme fees in their headline rates, while others break them out separately.
There are several factors that determine the scheme fee rates but here are the top five categories for Mastercard and Visa:
Credit category | Card type | Issuer region | Interchange fee | Scheme fee |
Credit cards | Visa Credit | UK & EEA | 0.30% | 0.0140% + £0.0145 |
International | 0.30-1.50% | 0.0140% + £0.0926 | ||
Mastercard Credit | UK & EEA | 0.30% | 0.0398% + £0.0054 | |
International | 0.30-1.50% | 0.0398% + £0.0902 | ||
Debit cards | Visa Debit (incl. prepaid) | UK & EEA | 0.20% | 0.0100% + £0.0145 |
International | 0.20%-1.15% | 0.0140% + £0.0926 | ||
Visa Electron | UK & EEA | 0.20% | 0.0100% + £0.0145 | |
International | 0.20%-1.15% | 0.0100% + £0.0926 | ||
Visa V Pay | UK & EEA | 0.20% | 0.0100% + £0.0145 | |
Mastercard Debit (incl. prepaid) | UK & EEA | 0.20% | 0.0398% + £0.0054 | |
International | 0.20%-1.15% | 0.0398% + £0.0902 | ||
Maestro (incl. prepaid) | UK & EEA | 0.20% | 0.0398% + £0.0054 | |
Europe | 0.20%-1.15% | 0.0398% + £0.0054 | ||
International | 0.60%-1.60% + €0.00-€0.25 | 0.0398% + £0.0902 | ||
Visa business debit cards | Visa Business Debit | UK | 0.30%-1.40% + £0.00-£0.10 | 0.0100% + £0.0145 |
EEA | 0.75% + €0.00-€0.60 | 0.0100% + £0.0145 | ||
Europe | 0.75%-1.60% + €0.00-€0.60 | 0.0140% + £0.0926 | ||
Other business cards | Visa Corporate and Purchasing | UK | 1.70%-2.00% | 0.0140% + £0.0145 |
Europe | 1.55%-2.00% | 0.0140% + £0.0145 | ||
International | 2.00% | 0.0140% + £0.0145 | ||
Visa Business | UK | 1.40% | 0.0140% + £0.0145 | |
Europe | 1.35%-1.60% | 0.0140% + £0.0145 | ||
International | 2.00% | 0.0140% + £0.0926 | ||
Mastercard Business | UK | 0.70%-1.70% | 0.0398% + £0.0054 | |
EEA | 0.80%-1.65% | 0.0398% + £0.0054 | ||
Europe | 0.80%-2.10% | 0.0398% + £0.0902 | ||
International | 2.00% | 0.0398% + £0.0902 | ||
Maestro Business and Commercial | UK | 0.40%-1.65% + £0.00-£0.05 | 0.0398% + £0.0054 | |
EEA | 0.40%-1.65% + £0.00-£0.05 | 0.0398% + £0.0054 | ||
Europe | 0.80%-2.10% | 0.0398% + £0.0902 | ||
Diners Club International (DCI) cards | DCI Credit | UK & EEA | 0.30% | 0.1500% |
International | 1.50% | 0.1500% | ||
DCI Debit (incl. prepaid) | UK & EEA | 0.20% | 0.1500% | |
International | 1.50% | 0.1500% | ||
DCI Business and Commercial | UK & EEA | 1.75% | 0.1500% | |
International | 1.75% | 0.1500% |
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