If you run a business in Lithuania, chances are you already accept payments by debit or credit card. It’s convenient, expected by customers, and increasingly essential in a market that’s rapidly embracing digital payments. But what many Lithuanian business owners don’t realize is that the visible cost of accepting card payments is only part of the story.
Behind the standard processing fees lie a host of hidden costs ranging from minor charges that add up over time to unexpected penalties buried deep in your service agreement. These fees can quietly drain profits, especially for small to medium-sized businesses operating with tight margins.
In this article, we’ll break down the lesser-known costs of card payment processing in Lithuania and provide practical steps to take control of them.
Why Payment Processing Fees Matter
1. They Directly Affect Your Bottom Line
In Lithuania’s competitive retail and service sectors, every euro counts. A 0.5% difference in payment processing fees might not sound like much, but for a business turning over €500,000 per year, that’s €2,500 straight off your profit line. Many Lithuanian businesses are paying more than they should simply because they haven’t closely reviewed their payment processor agreements.
2. Complex Pricing Models Are the Norm
Most processors in Lithuania, including major banks and international PSPs (payment service providers), use pricing models that are difficult to interpret. There may be one advertised rate, but the actual cost depends on card type (local vs. foreign, debit vs. credit), transaction method (in-store vs. online), and more.
3. Card and Contactless Are Now Standard
According to Bank of Lithuania data, over 80% of consumer payments in the country are now non-cash, with contactless and mobile wallets becoming mainstream. Not offering these options can lose you sales but enabling them without fully understanding the cost can eat into your margins.
Common Payment Processing Fees
Interchange Fees
What They Are: A fee paid to the customer’s (aka cardholder’s) bank for processing the transaction.
Range in Lithuania: Usually between 0.2% and 0.3% for debit cards, and up to 0.9% for credit cards (EU-regulated).
Why They Matter: Even though these are capped by EU regulation, some processors don’t clearly separate them from their own markup, leaving you guessing.
Acquirer/Processor Markup
What It Is: The fee your payment processor adds on top of the interchange fee.
Range: Can vary from 0.2% to 1% or more, depending on your provider and transaction volume.
What to Watch: Many providers blend these costs together, making it hard to negotiate better rates.
Terminal Rental Fees
What It Is: Monthly fee for using the card terminal.
Cost: Typically €10–€30/month in Lithuania.
Why It’s Easy to Miss: It may be bundled with other services or listed as a general “service fee.” Can usually be negotiated or waived if your process high volumes.
Monthly Service or Maintenance Fees
What It Is: Flat monthly charge for account support, reporting tools, or support services.
Cost: €5–€20/month.
The Hidden Impact: Often overlooked or accepted as “standard,” but can usually be negotiated or waived.
PCI DSS Compliance Fees
What It Is: Charged for ensuring your business complies with payment data security standards.
Cost: €100–€250 per year.
Why It’s Tricky: Some Lithuanian processors charge it automatically, even if you’re not made aware of the requirement.
Cross-Border, Foreign Card or Business Card Fees
What It Is: Extra charge for accepting cards issued outside Lithuania, the EU or business/corporate cards.
Cost: 1%–4% per transaction.
The Catch: These aren’t always itemized clearly and can spike during tourist season.
Chargeback Fees
What It Is: A fee charged when a customer/cardholder disputes a transaction.
Cost: €15–€40 per dispute, plus possible product loss and admin time.
Hidden Danger: Frequent chargebacks can damage your relationship with card networks or even result in fines.
Early Termination Fees
What It Is: Charged if you cancel your processing contract early.
Cost: Can range from €100 to several hundred euros.
Where It Hides: Often buried in small print under “minimum contract term” or “early cancellation.”
How to Take Control of Payment Costs in Lithuania
1. Review Your Merchant Statements Regularly
Go line by line and question every charge. Don’t assume a vague term like “monthly fee” or “other cost” is unavoidable.
2. Ask about Interchange-Plus (IC+) Pricing
For higher volume merchants, IC+ makes sense and can equal big cost savings. You can see exactly what the bank gets and what your provider is charging on top. For smaller merchants a simple to understand blended rate makes sense.
3. Compare Offers from Different Providers
Banks, fintechs, and international platforms all offer merchant services in Lithuania. Don’t assume Swedbank, Luminor, SEB, SumUp or Citadele offers the best deal or services. Get multiple quotes and don’t be afraid to switch.
4. Stay PCI Compliant
Complete the necessary self-assessment (SAQ) each year. Ask your provider if they offer help without extra fees or look for free tools online.
5. Watch for Auto-Renewals
Many merchant agreements in Lithuania auto-renew annually. Mark your calendar to renegotiate before you’re locked in again.
6. Understand Cross-Border and Currency Fees
If you cater to foreign customers (especially in Vilnius, Kaunas, or Klaipėda), make sure you understand the costs of accepting cards issued outside the EU.
Why Transparency Is Critical for Lithuanian Businesses
The more informed you are, the better decisions you can make. Not just in pricing, but in how you position your business. Payment processing costs might seem like a technical detail, but they directly affect your profitability and pricing power.
Just a 0.5% savings in transaction fees could mean thousands of euros annually money that could be reinvested into marketing, staffing, or product development.
Final Thoughts
In Lithuania’s modern economy, electronic payments are essential. But understanding the full cost of accepting those payments is equally essential. By demystifying your payment processing fees, asking the right questions, and reviewing your contracts carefully, you can keep more of what you earn, and run a leaner, more competitive business.
KasaPay can help you understand your fees better by providing a Free Fee Assessment. Click here to get started.
