Below it
Pay-as-you-go may be cheaper because you are not paying the plan fee.
Plan maths
When does a monthly plan start paying for itself?
A lower transaction rate can be useful, but only after it has earned back the fixed monthly fee. Find that point with the sales figures you expect.
The break-even idea
(Monthly plan fixed fee − pay-as-you-go fixed fee) ÷ ((pay-as-you-go rate − monthly plan rate) ÷ 100) = the monthly turnover where both options cost the same.
If pay-as-you-go has a fixed monthly fee, it is the difference between the two fixed fees that matters; if that fee is £0, this reduces to the simpler case.
Your result
Enter your figures to see when the monthly plan catches up.
Start with the figures you have
Three ways to get to your real rate.
Choose the mode that matches your paperwork. These are estimates, but they include the fixed costs that headline rates leave out.
Work backwards from your bill
Use your statement total to find the effective rate.
Enter your provider's total charges and your card turnover for the same period.
Include VAT in fees only if you want a VAT-inclusive comparison. Use the same basis for any alternative.
Detailed merchant fee estimate
Advanced
Enter the card mix by value of sales. Put all monthly fixed charges into the relevant boxes. Leave unused fees at zero.
Compare another provider
Compare alternative rates and fees
Use identical turnover, card mix and transaction count for both providers.
How the figures work
Effective overall rate = all fees ÷ card turnover × 100. This includes fixed charges. In advanced mode, each card category's fee is its share of turnover multiplied by its rate; transaction charges and monthly fees are then added. The alternative uses the same turnover and transaction count.
These are estimates, not a quote. Card type by sales value may differ from card type by transaction count. Refunds, chargebacks, international cards, minimum charges, tiered pricing, interchange-plus structures, VAT treatment and billing dates can change an actual statement. Check your contract and statement before switching.
How to read it
The lower rate only matters after the crossover.
At it
Both options cost about the same using the rates and fees you entered.
Above it
The plan’s lower percentage can offset the fixed fee, if the rest of the quote is comparable.
Before you choose
Check the parts this simple model cannot see.
Confirm whether the plan rate applies to every card type, including credit and commercial cards.
Check if the fixed fee includes the terminal, PCI compliance, support, or a minimum term.
Use your real card turnover, not total sales if some payments are cash or bank transfer.
Compare VAT-inclusive or VAT-exclusive figures on the same basis.