Hi Karen

It does sound expensive, but it does depend on your turnover and expected average transaction value.

Who have you approached? You should try and get a few quotes. Note that smaller banks aren't very competitive.

Try Cardsave http://www.cardsave.net/ Also are you members of the Federation of Small Businesses or Forte's Good Garage Scheme, either of which can offer pretty good rates.

You shouldn't be paying minimum monthly charges, but again depends on turnover, etc.

What you can do is once you have been accepting cards, get them to requote you or threaten to leave......but watch out for costs if you leave before your term is up.

We have never passed the charge on to customers because I personally don't agree with it as I won't use companies that do that to me, but its up to you. Just increase your charges to cover the expense and absorb it.

HTH

Sean