The Truth About Finance Commissions in UK Retail (and why 2026 changes everything)

The Truth About Finance Commissions in UK Retail (and why 2026 changes everything)

Most merchants believe 0% finance is truly free for the customer.

In reality, someone always pays – either you (through subsidy) or your customer (through a quietly inflated product price).

FinMatch can help you navigate the FCA's 2026 changes around 0% finance. Keep reading to to learn more.

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The Hidden Cost of "0% Interest-Free" Just Got Exposed

The FCA’s Consumer Duty “fair value” rules are now fully enforced.

From 2026, every 0% deal will be scrutinised: If the total cost to the customer isn’t demonstrably fair, the deal disappears.

Thousands of UK retailers may soon lose their most powerful sales tool – unless they act in the next few months.

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The Reality Most Merchants Miss

Fact: In retail & e-commerce (unlike motor finance) merchants rarely charge customers a fee or commission for finance.

Many actually subsidise the 0% themselves and the lender’s commission is quietly built into the recommended retail price.

The FCA now says: If the customer is paying more for the product to fund “free” finance, you must prove that the arrangement still delivers fair value.

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What's Changing in 2026?

FCA 2026 priorities include deeper fair-value reviews across consumer credit.

Some lenders and merchants are already quietly withdrawing or repricing high-subsidy 0% deals to stay on the right side of the rules.

When those deals disappear, the merchant is left with nothing – or forced to introduce expensive interest-bearing plans overnight.

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The Opportunity

Smart retailers are future-proofing now by introducing transparent, low rate plans (typically 6.9%–19.9% APR) that:

• Remain fully compliant with Consumer Duty.
  
• Maintain  over 70% of the conversion power of 0% offers.
  
• Protect (or improve) margins
  

Merchants who make the switch in the next 3–6 months will keep selling while competitors scramble.

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Get ahead of the 2026 changes today.

Contact us and we'll send you our “2026-Ready Finance Checklist”.

It shows exactly which plans are safe and how to switch without losing sales.

FinMatch provides you compliant consumer finance that delivers results.

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Contact us today!