Why Customers Pay by Card, and What It Costs You
Written by James Walker · Last reviewed 16 August 2026
James Walker has 2 degrees in construction (BSc (Hons) Building Surveying · MSc Environmental Design of Buildings) and an extensive background in issue resolution, resolving over £4 billion of consumer issues.
The short answer
- On a big installation, customers pay by credit card to get protection, not for convenience.
- You absorb the cost: UK card processing typically runs 1.5% to 2.9%.
- On a £10,000 job that is roughly £150, on every job.
- If the customer is protected another way, the reason to use a card disappears.
- Open Banking is charged as a flat fee, commonly 20p to 50p, and settles in seconds.
On this page
The reason isn't convenience
It's worth understanding what's actually happening when a customer reaches for a credit card on a large job.
Section 75 gives them a claim against the card issuer if the business fails or the work is defective, on credit card payments over £100. Chargeback may apply to debit cards. Cash and bank transfer generally give them nothing.
So on a five-figure installation, the card is a deliberate risk decision. They've read what happens when a company goes under mid-job, and the card is the only protection they know how to get.
What that costs you
UK card processing typically runs 1.5% to 2.9% per transaction.
| Job value | Card fee at 1.5% | Card fee at 2.9% |
|---|---|---|
| £5,000 | £75 | £145 |
| £10,000 | £150 | £290 |
| £25,000 | £375 | £725 |
| £50,000 | £750 | £1,450 |
That comes off your margin on work you've already priced. And on high-value installations it's a substantial number that most trades treat as a fixed cost of doing business.
What changes if the customer is protected another way
If the customer already has payment protection and a route to independent redress, the card stops being the only way to get covered.
That's the mechanism: they're protected by the arrangement rather than by the payment method. Which means Open Banking becomes an acceptable way to pay rather than a worse one.
Open Banking is charged as a flat initiation fee, commonly 20p to 50p per transaction, rather than a percentage. On a £10,000 job the difference is roughly £150 against pennies, and it drops straight to the bottom line.
Faster Payments also settle in seconds, against card settlement delays. On a business running several jobs at once, that's a cash-flow difference as well as a cost one.
Saying it accurately to customers
Worth getting this right, because overclaiming here would be a serious mistake.
Section 75 is a statutory right against the card issuer. Payment protection through a code or a platform is a different mechanism reaching a similar outcome, not the identical legal remedy.
Present it as equivalent assurance, not as the same legal protection. A customer who later discovers you implied Section 75 and delivered something else is a complaint you deserved.
Related guides
Common questions
- Can I just add a card surcharge?
- Surcharging consumers for most card payments is prohibited.
- What about debit cards?
- Cheaper than credit, but still a percentage in most cases.
- Is Open Banking hard for customers?
- They authorise the payment in their own banking app.
- Do all customers care about Section 75?
- Not on small jobs. On five-figure work, many do.