What is Token Provision Charge ?

Token Provision Charge

A token provision charge is a small amount that you’re charged each time you make a card payment. It’s usually a percentage of the total amount you’re spending, and it helps to cover the cost of providing the card payment service.

How Token Provision Charges Work

When you make a card payment, the retailer pays a small fee to their bank or card processor. This is because processing card payments is not free – businesses have to cover the cost of things like fraud protection and data security. The token provision charge is passed on to the customer in order to cover these costs.

For example, let’s say you’re buying something that costs $100. The retailer might charge a token provision fee of 2%, which would add an extra $2 to your bill. So your total purchase would come to $102.

What Does this Mean for You?

In most cases, you won’t even notice the token provision fee as it’s such a small amount. However, if you’re making a large purchase, it’s worth checking whether the retailer charges a token provision fee before you hand over your card. That way, you can factor it into your budget and avoid any nasty surprises!


Token provision charges are small fees that retailers charge customers each time they make a card payment. These charges help to cover the cost of things like fraud protection and data security for businesses. In most cases, token provision charges are so small that customers don’t even notice them. However, it’s always worth checking whether a retailer charges this fee before making a large purchase.