NPI UK transaction rates offer a competitive alternative to flat-fee providers like Zettle, SumUp, and Square. When you’re processing card payments every day, those percentages add up quickly. A business taking £50,000 in card payments monthly could pay anywhere between £800 and £1,250 in fees, depending on their provider and pricing structure.
Many UK business owners struggle to compare payment providers fairly. Some advertise low headline rates but add hidden fees. Others bundle everything into one simple percentage. This guide breaks down how NPI UK transaction rates compare with three popular providers, helping you work out which pricing structure suits your business best.
What Payment Processing Fees Mean for Your Business
Every card payment involves several parties: your customer’s bank, the card network (Visa or Mastercard), and your payment provider. Each takes a small cut.
Your payment processing rate typically includes two parts: a percentage of the sale (usually 1.5% to 2.5%) plus sometimes a fixed fee per transaction (like 20p). These rates cover interchange fees (paid to your customer’s bank), scheme fees (paid to Visa/Mastercard), and your provider’s markup for their service.
According to UK Finance, UK businesses processed over 17 billion card payments in 2024. Understanding your true processing costs helps you budget accurately and price your products properly.
Zettle Transaction Rates and Pricing Structure
Zettle (owned by PayPal) uses flat-rate pricing across all card types. Their rates are:
- In-person payments: 1.75% per transaction
- Online payments and invoices: 2.5% per transaction
- Keyed-in payments: 2.75% per transaction
- No monthly fees or contracts required
Zettle charges the same rate whether customers pay with debit cards, credit cards, or American Express. This simplicity appeals to many small businesses. You know exactly what each transaction will cost.
The hardware is affordable too. The Zettle Reader 2 currently costs £29 plus VAT. Funds typically arrive in your PayPal account within minutes, though transferring to your bank takes one to two business days.
Best for: Businesses processing under £10,000 monthly who want predictable costs and PayPal integration.
SumUp Transaction Rates: Pay-As-You-Go vs Subscription
SumUp offers two pricing structures: pay-as-you-go and a subscription plan.
Standard Plan (Pay-as-you-go):
- In-person payments: 1.69% per transaction
- Online payments: 2.50% per transaction
- No monthly fees or contracts
Payments Plus Subscription:
- In-person payments: 0.99% per transaction
- Online payments: 1.99% per transaction
- Monthly cost: £19 per month
- 50% discount on hardware
The Payments Plus plan makes financial sense once you’re processing around £3,000 monthly. At that volume, the lower transaction rate offsets the subscription cost.
SumUp’s card readers range from £29 for the Air reader to £99 for the 3G terminal. Funds typically arrive in your bank account within one to two business days.
Best for: Businesses wanting the lowest per-transaction rate, especially if processing high volumes under the Payments Plus plan.
Square Transaction Rates Breakdown for UK Businesses
Square positions itself between basic pay-as-you-go providers and traditional merchant accounts. Their pricing includes:
In-Person Payments:
- UK cards: 1.75% per transaction
- Non-UK cards: Additional 1.5% fee applies
Online Payments:
- UK cards: 1.4% + 25p per transaction
- Non-UK cards: 2.5% + 25p per transaction
Keyed-In Payments and Invoices:
- All cards: 2.5% per transaction
Square charges no monthly fees and includes features like inventory management, staff accounts, and detailed analytics at no extra cost. Their card reader starts at just £19 plus VAT.
Funds transfer to your bank account in one to two working days for free, or you can pay 1.5% for instant transfers.
Best for: Businesses needing robust point-of-sale features alongside payment processing, particularly those selling online where Square offers competitive rates.
How NPI UK Transaction Rates Work for Your Business
NPI UK transaction rates take a different approach to pricing than flat-rate providers. Rather than offering one-size-fits-all rates, we build custom pricing based on your specific business needs.
We consider factors like:
- Your monthly processing volume
- Average transaction size
- Card mix (debit vs credit)
- Business type and industry
- Whether you need in-person, online, or both
For many businesses processing over £3,000 monthly, custom pricing delivers better value than flat-rate models. Here’s why:
Lower Effective Rates: UK debit cards (which make up the majority of transactions for most businesses) have lower interchange costs than credit cards. Flat-rate providers charge the same for both. Custom pricing can reflect these differences, potentially saving you hundreds of pounds monthly.
No Hidden Costs: We include PCI compliance, customer support, and account management in your package. You won’t find surprise charges on your statement.
Professional Guidance: Our team helps you choose the right terminals, integrate with your existing systems, and optimise your payment setup. We’re here to support your business, not just process transactions.
Get in touch on 023 8001 9998 or visit npi.uk for a no-obligation quote based on your actual business figures.
Real-World Cost Comparison: NPI UK Transaction Rates vs Competitors
Let’s look at what different providers would charge a typical small business processing £10,000 monthly in card payments, with 80% debit cards and 20% credit cards:
Zettle:
- Monthly fees: £0
- Transaction costs: £175
- Total: £175/month
SumUp (Payments Plus):
- Monthly fees: £19
- Transaction costs: £99
- Total: £118/month
Square:
- Monthly fees: £0
- Transaction costs: £175
- Total: £175/month
NPI UK (Example Custom Rate):
- Monthly fees: Typically £10-25 depending on service level
- Transaction costs: Approximately £120-140 (based on card mix)
- Total: £130-165/month
These are illustrative examples. Actual costs vary based on your specific transaction mix and volumes.
At higher volumes, the savings become more substantial. A business processing £50,000 monthly could save £500-800 annually with NPI UK transaction rates compared to flat-rate providers.
Choosing Between NPI UK Transaction Rates and Flat-Fee Providers
Choose flat-rate providers (Zettle, Square) if you:
- Process under £3,000 monthly
- Want absolute simplicity
- Need to get started quickly with minimal paperwork
- Prefer knowing exactly what each transaction costs
Consider SumUp Payments Plus if you:
- Process £3,000-10,000 monthly
- Want the lowest flat rate available
- Don’t need extensive POS features
Explore NPI UK transaction rates if you:
- Process over £3,000 monthly consistently
- Have a high percentage of debit card transactions
- Want lower overall costs as your business grows
- Need dedicated support and account management
- Process both in-person and online payments
Beyond Transaction Rates: The Full Cost Picture
Payment processing rates tell only part of the story. Consider these additional factors:
Settlement Times: How quickly do funds reach your account? Faster settlement improves cash flow, particularly for businesses with tight margins.
Hardware Costs: Some providers offer cheap readers but expensive terminals. Others provide hardware bundles. Work out your total equipment cost over two years.
Contract Terms: Flat-rate providers typically offer month-to-month arrangements. Custom pricing might involve longer terms, but often delivers better rates in exchange.
Support Quality: When your card machine stops working at your busiest time, responsive support matters. Consider availability, response times, and UK-based support teams.
Making the Right Choice for Your Business
The cheapest advertised rate doesn’t always deliver the lowest costs. Your actual expenses depend on transaction volumes, card types you accept, and which features you need.
Start by working out your current payment processing costs. Look at last month’s statement and calculate:
- Total transaction fees paid
- Any monthly or annual charges
- Average transaction size
- Percentage of debit vs credit card payments
Armed with these numbers, you can compare NPI UK transaction rates against other providers accurately rather than relying on headline percentages.
Get a Personalised Quote for NPI UK Transaction Rates
Understanding how NPI UK transaction rates compare to other providers helps you make informed decisions. Every business has different needs, and the right payment provider depends on your specific situation.
We believe in transparent conversations about pricing. No pushy sales tactics, just honest advice about what works for businesses like yours.
Contact New Payment Innovation today for a personalised quote:
- Call us on 023 8001 9998
- Visit our website at npi.uk
- Email us with your monthly processing figures for an accurate comparison
Our team will review your current costs, explain your options clearly, and help you decide whether NPI UK transaction rates or a flat-rate provider suits your business better. We’re here to help you keep more of your hard-earned revenue.
Disclaimer: Competitive data on this page was collected as of 12th February 2026 and is based on information found on publicly available sources from Zettle, SumUp, and Square websites. This information is subject to change or update without notice. NPI UK does not make any representations as to the completeness or accuracy of the information on this page.
