Card payment fees in Malta: what businesses really pay to accept cards

In Malta and Gozo, most customers now pay by card, from the pastizzeria to the hotel reception. For small businesses, card fees have become a fixed monthly cost. It's a small market with few providers, and many contracts haven't been looked at in years.

What makes up the price?

• Interchange: paid to your customer's bank. For consumer cards issued in the EU it is capped by law at 0.2% for debit and 0.3% for credit cards.
• Scheme fees: what Visa and Mastercard charge for their network. Not capped.
• Your provider's margin: what your bank or payment company adds. This is where the biggest differences are.
• Fixed costs: terminal rental, monthly fees, minimum charges and sometimes PCI fees.

Few providers, old prices

Many Maltese businesses take cards through their bank or one of a small number of local payment companies, often at a single rate for every card. With limited competition, prices rarely fall on their own.

British visitors and business cards

The UK is one of Malta's biggest tourist markets. Since Brexit, UK cards are no longer EU cards, and payments with them carry higher cross-border and scheme fees. Business and corporate cards are not capped either. On a single blended rate you never see this, but you pay for it.

Blended or interchange++?

• Blended: one rate for everything. Simple, but a cheap Maltese debit card costs you as much as a premium business card.
• Interchange++ (IC++): interchange and scheme fees passed through at cost, plus a fixed, visible margin. More transparent and usually cheaper.

A simple example

You take €25,000 a month by card at an average of 1.8% all-in: €450 a month. At 1.2% it would be €300. That's €1,800 a year.

What to do now

1. Find your latest monthly statement.
2. Divide all fees (including terminal rental) by your card turnover. That's your real average rate.
3. Compare it with an interchange++ offer.