Merchant Service Charge (MSC)

The merchant service charge (MSC) is the fee your provider charges for processing each card payment, usually a percentage of the transaction.

It's typically the single biggest line on your merchant statement, so it's the first thing worth understanding.

The MSC can be charged as a single blended rate, or split transparently as Interchange++ — the card scheme's interchange fee, scheme fees, and your provider's margin.

With a blended rate everything is rolled into one percentage, which makes it harder to see how much margin your provider is taking.

Applies to every card payment you take. The structure matters: blended rates often hide a higher margin than Interchange++.

Reviewing how your MSC is structured is usually where the biggest savings are found.

The MSC is usually your biggest payment cost. Switching from a padded blended rate to transparent pricing typically saves 15–30%.

On meaningful card turnover, that percentage difference can add up to thousands of pounds a year.