The short answer
Record merchant fees in a dedicated expense account, separate from bank charges. Track them as a percentage of card revenue each month. For many retail and hospitality businesses this is the second or third largest variable cost after cost of goods and labour.
Make the trend visible
A monthly fees-to-revenue percentage chart surfaces rate creep, card mix shifts and downgrade problems long before an annual review would. It takes one line in your reporting pack.
Tax treatment
Merchant fees are ordinarily a deductible business expense in both countries. Keep statements filed — they are the supporting evidence.
Key takeaways
- Use a dedicated expense account, not bank charges
- Chart fees as a percentage of card revenue monthly
- Retain statements as supporting documentation
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