Card payment fees explained for UK halls, clubs and charities

The published rates

These are Stripe's standard UK rates, as published on its pricing page:

• Standard UK cards: 1.5% + 20p. This covers personal (consumer) Visa and Mastercard cards.
• Premium UK cards: 2.8% + 20p. Stripe counts commercial, corporate and business Visa and Mastercard cards as premium.
• EEA cards: 2.5% + 20p.
• International cards: 3.15% + 20p, plus 2% if the currency has to be converted.

You don't choose which rate applies. It depends on the card the payer uses. Other providers price differently, so check their published rates.

What that means in pounds

Worked examples, using the rates above. On a £60 booking:

• Standard UK card: 90p + 20p = £1.10
• Business card: £1.68 + 20p = £1.88
• International card: £1.89 + 20p = £2.09, or £3.29 if the currency is converted

So if a local company books your hall on its business card, you pay more than if a resident pays with their own card.

Why small payments cost more

The fixed 20p is the part that hurts. On a £5 payment, the fee is 7.5p + 20p, about 28p. That's over 5% of the payment. On £60 it's under 2%.

Here's an example. A group hires a room for £15 a week. Four separate weekly payments on a standard card cost 42.5p each, £1.70 a month. One monthly payment of £60 costs £1.10. That's 60p a month saved for one hirer, just by changing when they pay.

The same logic applies to memberships and subscriptions. A yearly fee paid once costs less in card fees than twelve monthly payments of the same total.

Three costs people forget

• Refunds. Stripe says the processing fee on the original payment is not returned when you refund. Refund a £60 booking and you're still £1.10 down.
• Disputes. If a payer disputes a charge with their bank, Stripe charges £20, and another £20 if you counter it. The second fee is refunded if you win.
• Instant payouts. Standard payouts to your bank account are free. If you choose an instant payout, Stripe charges 1%, with a minimum of 40p. Unless you really need the money that day, the standard payout is fine.

Five ways to keep fees down

1. Take fewer, larger payments. Invoice regular hirers monthly rather than per session.
2. Offer bank transfer to regulars. Check your own bank's tariff, but for many small accounts this is cheaper than card.
3. Think before taking card deposits you'll refund. Every refunded deposit costs you the original fee. A smaller deposit, or a clear damage policy, may be enough.
4. Make cancellation terms clear at booking. Clear terms reduce the chance of a £20 dispute.
5. Check your statement once a quarter. If fees are much higher than 1.5% + 20p on average, find out which cards or payments are causing it.

For how card fees fit alongside software costs, see our guide to booking system costs.

Sources

• Stripe UK pricing
• Stripe: standard and premium cards

Related

• How much does a booking system cost in the UK
• Taking village hall bookings online, step by step
• Booking systems for halls and clubs

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