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Rate drift: why your pricing gets worse while you do nothing

Scheme fee increases, PCI charges and quiet re-tiering mean a good deal decays. What to review, and when.

James WhitfieldHead of payroll brokering19 June 20265 min read

Key takeaways

  • Scheme fee pass-throughs are contractual and rarely announced loudly.
  • Re-price annually, and always after a volume step change.
  • Keep a dated copy of every rate schedule you have ever signed.

Nobody sends you a letter saying your pricing has got worse. It happens through pass-throughs, added ancillary fees and volume tiers you have grown out of without being moved into.

The three drift mechanisms

  • Scheme fee pass-through — permitted by almost every contract, applied without negotiation.
  • Ancillary creep — PCI fees, statement fees, non-secure surcharges appearing line by line.
  • Stale tiers — you qualify for better pricing at your current volume but nobody applies it retrospectively.

A review rhythm that works

Recalculate your effective rate every quarter, re-shop the market every twelve months, and re-shop immediately after any month where volume moves more than 25%. We do this for clients automatically, but the calculation takes any finance team about twenty minutes with three statements.

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