Payment fees for market traders
Payment providers charge in several ways, including a percentage of each sale, a fixed amount per sale, hardware costs and monthly fees. Add up the total on your typical day and divide by your takings to compare providers fairly. Always use the figures on the provider's current published terms.
The types of charge
- A percentage of each sale.
- A fixed amount on each sale, which affects small sales most.
- The cost of the reader, whether bought, rented or supplied free.
- A monthly or annual account fee.
- Fees for refunds, chargebacks or early payout.
- Extra charges for particular card types.
Why the fixed amount matters
A fixed charge on each sale takes a bigger share of a low-value sale than a high-value one. A trader selling many small items feels this more than one selling a few expensive items. Check which kind of charge dominates for your stall.
Where card fees come from
Part of what a trader pays on a card sale goes to the bank that issued the customer's card. This is known as the interchange fee, and the rest covers the card schemes and the payment provider. Pricing may be shown as one blended rate or as separate parts, and the provider's terms say which applies.
How to compare providers
- Write down your average sale and the number of sales on a typical day.
- Take the figures from each provider's current published pricing page.
- Work out the total cost for that day, including any monthly fee spread across your trading days.
- Compare the total cost as a share of your takings.
- Check how quickly money reaches your account.
Take a day with a known number of sales and a known total. Apply each provider's published charges to those figures, add any monthly or hardware costs spread across the days you trade, and write the result as a share of your takings. Repeat for a quiet day and a busy day, because a fixed amount per sale shifts the result.
Read the contract terms
Look for minimum terms, cancellation charges, hardware return rules and what happens if you trade only in the summer. A low headline charge can come with conditions, so read the full terms before you sign.
Review your provider once a year or when your sales pattern changes. A trader who moves from small items to larger ones, or from weekly markets to a few big events, may find a different pricing structure suits better.
Keep the fees in your records
Payment charges are a business cost, and you need records of them for your accounts. GOV.UK explains what records self-employed people keep. The pricing and costs hub shows how to include them when you set your prices.
Frequently asked questions
What fees do card readers charge market traders?
Providers use a mix of a percentage per sale, a fixed amount per sale, hardware costs and sometimes monthly fees. The exact mix is in each provider's published terms.
Can I pass card fees on to customers?
Rules on surcharging card payments in the UK have changed over the years, so check current GOV.UK guidance and your provider's terms before you add any charge.
Are payment fees tax deductible?
Payment charges are normally a business expense. Keep records and check HMRC guidance or ask an accountant about your own position.
How do I find the cheapest option for my stall?
Use your own average sale and daily sales count, apply each provider's published charges and compare the total cost.
Gazebos built for regular pitches
Once a pitch is confirmed, the stall needs to fit it. Gala Tent makes market stall gazebos for traders who set up week after week.
Useful pages on our sister sites
Event Industry Trader is published by Gala Tent. These pages from Gala Tent and the wider Gala group go further on the kit, branding and payments covered here.
Where to check the rules
- GOV.UK: business records if you are self-employed
- Wikipedia: interchange fee
- GOV.UK: how to claim expenses if you are self-employed
Rules vary by council and by event. Confirm requirements with the organiser and the relevant authority before you act.