Free tool
Minimum monthly service charge calculator
A minimum monthly service charge sets a floor: if the fees come to less, the merchant still pays the minimum. See the extra charge and what it does to the effective rate.
Runs in your browser. Nothing you type is sent or stored.
Learn more
How this tool works
How do you use it?
- Enter the minimum monthly service charge from the merchant's contract.
- Enter the fees the merchant would have paid that month without the minimum.
- Enter the card turnover for the month.
The formulaExtra charge = minimum monthly charge minus the merchant's fees (never below zero)
What does a worked example look like?
The tool opens with this example, in pounds.
- Minimum charge
- £0
- Fees before minimum
- £14.20
- Card turnover
- £1,100
- Extra charge
- None
- Total bill for the month
- £14.20
- Real cost with the minimum
- 1.29%
- Real cost without the minimum
- 1.29%
Which mistakes should you avoid?
- Confusing a minimum monthly service charge with the UK term merchant service charge, which means total fees.
- Only checking the merchant's busiest month. The minimum bites in the quietest.
- Forgetting that the minimum may be on top of terminal rental.
Frequently asked questions
Is a minimum monthly charge normal?
It is common on some plans, especially those with low percentage rates. Always check it against the merchant's slowest month.
Can it be negotiated away?
Often, particularly when the merchant is comparing quotes. Ask whether it can be removed or lowered.
Does the minimum apply every month?
Only in months where the fees fall below it. In busy months it has no effect.
Does this tool store the figures?
No. It runs in your browser and nothing is sent or stored.
These tools give illustrations based on the numbers you enter. They are not quotes, financial advice or legal advice. Check any offer with the provider in writing.
Want the whole statement worked out?
The free calculator handles every card type, every fee and a side-by-side with an offer, and builds a quote PDF.