How to Take Credit Card Payments in the UK

Answer first: how can a UK business start taking credit card payments today?

If you run a UK business and want to start accepting card payments, here is the good news: you could be processing your first transaction within 24 to 72 hours if you choose the right provider and your application is straightforward. Accepting credit cards not only enhances your business’s credibility and expands your market reach, but businesses that accept credit cards are often perceived as more professional and trustworthy. Whether you operate a high street shop, an online store, or a travel agency navigating the complexities of advance bookings, the path to taking credit card payments – including major credit cards – is more accessible than many owners realise.

That said, the devil is in the detail. Going direct to a single provider often means paying “retail” card processing rates and overlooking terms buried in the small print – things like 48-month terminal leases, PCI non-compliance penalties, and minimum monthly service charges that quietly erode your margins.

Here is the typical journey a UK SME follows to start taking credit and debit card payments, including the ability to accept contactless cards:

1. Choose a merchant account or payment provider – This could be a traditional acquiring bank (like Barclays or Worldpay) or an all-in-one payment service provider.
2. Decide how you will accept payments – In person via a card machine (including contactless cards and mobile wallets), online through a website, or over the phone using a virtual terminal where you can manually enter card information.
3. Complete underwriting and KYC checks – The acquirer verifies your business, directors, and trading history.
4. Integrate the payment gateway or set up your card terminal – Either via plugins for your website or physical hardware for your shop floor. The payment gateway securely communicates with the customer’s bank to authorize credit card transactions.
5. Run test transactions, then go live – Confirm everything works before you open the doors to paying customers.

When choosing a provider, it’s important to consider fraud protection services to help safeguard your credit card transactions.

For standard retail and hospitality accounts, approval can often be secured within one to two working days. For higher risk sectors like travel, expect three to seven working days due to enhanced checks and rolling reserve negotiations.

If you’re a new or small business, you can also set up a free online store to start accepting credit card payments online and reach more customers.

We, as a UK merchant services brokerage, handle these steps on your behalf. We compare over 90% of UK acquirers and gateways, securing lower rates and faster approvals by leveraging the volume of clients we introduce. Put simply, banks offer sharper pricing to brokers like us who bring hundreds of accounts each year – a discount you cannot access by walking into a branch alone.

What does “taking credit card payments” actually involve?

Before diving into the options, it helps to understand the moving parts. In plain English, here is what you typically need to accept card payments in the UK:

• A merchant account (or all-in-one PSP facility) – This is the special account that holds settled funds before they transfer to your business account.
• A payment gateway – Required for e-commerce or if you process payments via a virtual terminal over the phone. The payment gateway securely handles payment information during transactions, ensuring customer card data is encrypted and transferred safely.
• Card acceptance hardware – A card machine, POS system, payment terminals, or mobile card reader for in person payments. Payment terminals integrate with your POS system and apps to facilitate seamless transactions.

All businesses must comply with PCI DSS (Payment Card Industry Data Security Standard) to secure sensitive payment data.

How a card transaction flows

This section describes the flow of credit card transactions when a customer pays by card. The following happens in seconds:

1. Card details are captured (chip and PIN, contactless tap, or Apple Pay / Google Pay).
2. The data is encrypted and sent to your acquiring bank.
3. The acquirer routes the request via the card schemes (Visa, Mastercard, Amex) to the customer’s bank (the issuer).
4. The customer’s bank checks funds, fraud risk, and account status, then returns an authorisation code.
5. Funds are settled to your merchant account, usually within one to three working days in the UK.

Every payment includes multiple cost layers: interchange (set by Visa and Mastercard), scheme fees, and the acquirer’s markup. Analysing these components is complex – and precisely what we do in our free statement analysis service.

One clarification worth noting: credit and debit card payments are processed through the same infrastructure. The difference lies in the type of card and risk profile, not the core process itself.

Ways to take credit card payments in the UK

UK businesses usually mix several channels depending on how and where they trade:

Channel	Typical use cases	Relative fees	Fraud risk
In person	Shops, cafés, salons, taxis, market traders	Lowest	Lowest
Online	Websites, booking engines, donation pages	Higher	Higher
Phone / MOTO	Service businesses, travel firms, B2B	Higher	Higher

Some businesses also offer bank transfer as an alternative payment method to reduce costs, especially for online or over the phone transactions.

Each method has different fees and fraud risk. In person “chip and PIN” transactions generally have the lowest risk and fees because the card is physically present. E-commerce and MOTO (mail order / telephone order) are “card not present,” usually attracting higher rates and stricter fraud controls.

We are provider-agnostic, matching businesses to the most suitable acquirer and gateway for each channel rather than pushing a single “house” solution. For high-risk sectors – travel agencies, subscription businesses, ticketing, CBD – specialist acquirers and robust gateways with tools like 3D Secure, risk scoring, and chargeback management become essential.

Accepting credit cards not only enhances credibility and improves customer experience through payment flexibility, but also helps businesses tap into new markets and improve overall operations.

Taking credit card payments in person

For face-to-face payments, your choice of hardware depends on how your business operates:

• Countertop terminals – Fixed at the till, ideal for shops and retail environments with a dedicated checkout.
• Portable Wi-Fi or 4G card machines – Perfect for restaurants, pubs, and cafés where staff bring the terminal to the table.
• Mobile card readers – Connect to a smartphone via Bluetooth, suited for taxis, tradespeople, market stalls, and seasonal businesses.

All modern UK terminals should accept:

• Chip and PIN
• Contactless payments (up to £100 per tap), including the ability to accept contactless cards for faster, more secure transactions
• Debit cards as well as credit cards, ensuring compatibility with all major card types
• Mobile wallets including Apple Pay and Google Pay
• All major schemes: Visa, Mastercard, Maestro (Amex is optional depending on provider)

Watch out for long card machine rental contracts. Many providers lock merchants into 36- to 60-month leases with auto-renewal clauses. We source shorter, more flexible terminal deals and ensure contract terms are explained in plain English before you sign.

Integration with existing EPOS systems – common in hospitality and retail chains – avoids manual keying errors and gives real-time sales and VAT reporting, saving hours of admin at month-end.

Taking credit card payments online

To accept credit card payments on a website or booking platform, you need:

• An e-commerce site or online checkout – Your digital storefront where customers browse and buy.
• A payment gateway – Software that securely handles and transmits payment information by capturing, encrypting, and transmitting card details (often via plugins for WooCommerce, Shopify, or Magento).
• An acquiring facility – To actually receive funds into a UK bank account.

Online payments suit:

• Retailers shipping goods across the UK and Europe
• Travel agents and tour operators taking deposits and balances
• Professional services selling retainers, memberships, or recurring subscriptions

When briefing your web developer, highlight these features:

• 3D Secure 2 for Strong Customer Authentication (SCA), mandatory in the UK since 2021
• Tokenisation for repeat billing and subscriptions
• Multi-currency processing if selling in EUR or USD while settling to GBP

Fraud protection is essential for online sales. Security features like end-to-end encryption, tokenization, and 3D Secure help protect against unauthorized transactions and ensure customer payment information is kept safe.

Online and cross-border transactions can attract higher interchange and scheme fees, plus currency conversion fees if you accept international cards. We compare multiple UK acquirers to minimise these costs and negotiate rolling reserve terms where necessary for high-risk online merchants.

Taking credit card payments over the phone (MOTO)

MOTO – Mail Order / Telephone Order – covers card-not-present payments where staff key card details into a secure virtual terminal or POS screen. Common use cases include:

• Trades and professional services taking deposits before starting work
• Travel firms booking holidays by phone
• Clinics, salons, and restaurants taking booking fees or no-show guarantees

To process MOTO payments, you typically need:

• A virtual terminal or online gateway login
• Explicit MOTO permissions on your merchant account
• Clear call handling and data security procedures to remain PCI compliant

MOTO transactions often carry higher transaction fees due to fraud risk. We help clients balance convenience with cost by combining MOTO with lower-cost online payment links where possible – for example, sending a customer a secure link by email or SMS so they can enter their own card details.

Critical rule: Sensitive customer data should never be written down on paper or stored in plain text emails. Staff should key details directly into a PCI-compliant system as the customer reads them aloud.

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Why taking credit card payments is now essential for UK businesses

The shift to cashless payments has accelerated dramatically:

• Card payments have accounted for well over half of all transactions by value in the UK since the early 2020s.
• Contactless transactions continue to grow each year, particularly after the contactless limit increased to £100 in October 2021.
• Around 80% of in-store card transactions are now contactless.

Customers expect to pay by debit or credit card everywhere – on the high street, at markets, in taxis, at home services, and when booking online. For many businesses, the question is no longer “should we accept card payments?” but “how do we do it without overpaying?” Accepting major credit cards is especially important, as it signals professionalism and builds trust with customers.

Remaining “cash only” carries real risks:

• Abandoned purchases at the till when customers have no cash
• Weaker credibility compared with competitors who accept cards
• Added costs in handling cash: counting, banking, security, and the risk of theft
• Increased risks of theft and human error associated with handling cash, which can be reduced by accepting credit card payments

Accepting credit card payments can:

• Increase transaction values
• Improve cash flow (funds typically landing within one to three working days)
• Provide better reporting, VAT records, and financial insights for owners and finance teams
• Enhance your business’s professional image and trustworthiness, as businesses accepting credit cards are often seen as more credible and reliable

Impact on sales and average transaction value

Multiple UK and international studies have shown that customers tend to spend more when paying by card than with cash – often by 10–20% per transaction. The reduced friction and perceived “pain of payment” encourage spontaneous purchases.

Practical examples:

• A café increases average spend from £6.50 to £7.50 per head once cards and contactless are enabled.
• A local retailer captures impulse accessory purchases that would otherwise be abandoned if a customer has limited cash in their pocket.

For higher-ticket items – travel bookings, furniture, dental treatments – the ability to take credit card payments makes it easier for customers to commit on the day, including via instalments or deposits.

Even after processing payments and fees, the uplift in completed online sales and higher average order value usually far outweighs the cost of accepting cards.

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Customer experience and trust

In 2024 and beyond, speed and convenience define customer satisfaction:

• Contactless payments and mobile wallets significantly reduce queue times compared with handling cash – essential for busy lunchtime trade, events, and pop-ups.
• The ability to accept contactless cards and all major credit cards not only increases convenience but also builds customer trust, as people expect secure, fast, and flexible payment options.
• Seeing recognisable card schemes and secure checkout logos reassures customers that a business is established and compliant, which is especially important for online and travel bookings made weeks or months before fulfilment.
• Modern terminals and gateways can send digital receipts by email or SMS, simplifying expense claims and record-keeping for customers and corporates alike.

Being able to pay “their way” – chip and PIN, contactless cards, Apple Pay, Google Pay, or payment links – often determines whether a customer completes a purchase or looks elsewhere.

Costs and fees when you take credit card payments

Let us be honest: pricing in the payments industry is confusing by design. Providers compete on headline rates while recouping margin through hidden extras. Here are the main fee types UK merchants should understand:

Fee type	Typical range	Notes
Per-transaction fee	0.3%–2.5% + pence	Varies by card type, channel, and risk
Monthly service charge	£10–£30+	May apply even if you process nothing
Terminal rental / lease	£15–£40 per month per device	Watch contract length and auto-renewal
Chargeback fees	£15–£25 per case	Applies when a customer disputes a payment
PCI compliance / non-compliance fee	£5–£30+ per month	Penalises merchants who ignore annual questionnaires
Minimum monthly charge	Varies	Ensures the provider earns a baseline
Early termination fee	Often hundreds of pounds	Tied to long term contracts

Headline rates advertised online rarely tell the full story. Providers may appear cheap but recoup margin through authorisation fees, “card not present” surcharges, or inflated cross-border and currency conversion fees.

We offer a free merchant statement analysis service where our experts dissect existing bills line by line, identify hidden charges, and benchmark them against current UK wholesale rates.

Real-world example: A restaurant in Manchester processing £40,000 per month reduced fees by £350 a month after renegotiation via our team – savings of over £4,000 per year.

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Pay-as-you-go vs contract pricing

Pay-as-you-go models:

• No monthly fees – you only pay a fixed percentage plus pence per transaction.
• Simple to start, but often expensive once you exceed a certain volume (e.g. above £5,000–£10,000 per month).
• Good for new start-ups, hobby businesses, sole traders, and seasonal businesses.

Contract / blended pricing:

• Fixed monthly or annual fees in exchange for lower per-transaction charges.
• Highly competitive for busy pubs, cafés, retailers, and established online businesses.
• May include minimum monthly charges and contract lengths (e.g. 12–48 months).

We evaluate your historic or forecast card turnover and mix – debit vs credit, domestic vs international, in person vs online – to recommend the most cost-effective structure.

Comparison example:

Business type	Best pricing model	Why
Seasonal mobile trader	Pay-as-you-go	No fixed fee burden in quiet months
Busy city restaurant (£80k/month)	Interchange-plus via acquirer	Lower effective rate at high volume

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Hidden fees to watch out for

Common “gotchas” that catch many businesses off guard:

• PCI non-compliance penalties when merchants ignore annual questionnaires or security measures
• Minimum monthly service charges that apply even if you do no card turnover
• Inflated MOTO / e-commerce rates hidden in small print
• Early termination fees tied to terminal leasing contracts rather than the merchant account itself
• Extra cost for paper statements or basic customer support
• Authorisation fees charged per attempted transaction, whether approved or declined

These clauses are often buried deep in multi-page agreements. A broker like us reads and explains them upfront and steers clients towards cleaner, transparent pricing contracts.

Case study: A retail business in Leeds thought they were paying 1.5% per transaction. Once all ancillary fees were included – authorisation charges, PCI fees, minimum monthly deductions – the effective rate was closer to 2.5%. After renegotiation through us, they dropped to a genuine 1.6% all-in, saving over £200 per month.

The DIY approach – simply choosing the cheapest way advertised online – can lock a business into four- or five-year commitments that are expensive to exit.

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High-risk industries: taking credit card payments when banks say “no”

From the acquirer’s perspective, “high-risk” means sectors with elevated chargeback risk, longer fulfilment times, or regulatory scrutiny. If you have ever been declined for a merchant account, you know how frustrating this can be.

Sectors commonly classed as high-risk in the UK:

• Travel agents and tour operators selling ATOL-protected packages
• Event organisers selling tickets for festivals or conferences
• Subscription-based services with auto-renewal
• Online coaching programmes and digital goods
• Certain financial services, nutraceuticals, and CBD

Typical obstacles these merchants face:

• Standard banks and aggregators declining applications outright
• Higher reserve requirements (e.g. 5–10% rolling reserve held for 6–12 months)
• Stricter PCI DSS and SCA expectations
• Sudden account closures if risk metrics trigger automated systems

We work with a wide panel of UK and European acquirers willing to underwrite high-risk sectors. We negotiate:

• Realistic rolling reserve percentages and durations
• Bespoke chargeback thresholds and monitoring
• Gateway and risk-tool configurations tailored to your business model

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Compliance, PCI DSS, and rolling reserves

PCI DSS in plain English: PCI DSS stands for Payment Card Industry Data Security Standard, the global standard dictating how merchants must handle card data to keep it safe. Requirements include:

• Not storing full card numbers after authorisation
• Using encrypted devices and secure networks
• Completing annual questionnaires and, for many SMEs, quarterly vulnerability scans

To maintain PCI compliance, businesses must regularly update their hardware and software to address new security threats and vulnerabilities.

Acquirers punish non-compliance with monthly PCI fees and, in serious cases, higher overall rates or even termination. We help merchants choose solutions – such as fully hosted payment pages and P2PE terminals – that minimise PCI scope and reduce the compliance burden.

AI and machine learning are increasingly used for real-time fraud detection in payment processing, helping businesses reduce risk and protect customer data.

Rolling reserves explained: A portion of your card turnover (typically 5–10%) temporarily held back by the acquirer to cover future chargebacks. This is particularly common in advance-sale businesses like travel or events where the customer pays months before fulfilment.

While reserves cannot always be avoided, an experienced broker can:

• Negotiate lower percentages
• Shorten the release period (e.g. from 12 months to 6 months)
• Ensure transparent reporting of reserve balances

Example: A small tour operator in London selling summer 2025 packages needed a card facility that understood long lead times without crippling cash flow. We secured a 5% reserve released after 90 days post-travel, rather than the standard 10% held for 180 days offered by the first provider they approached.

Why work with a UK merchant services broker instead of going direct?

The volume leverage argument

Acquirers offer sharper pricing to brokers who bring hundreds of accounts each year. An individual business walking into a branch is usually quoted “book rate” fees – the retail price with limited room for negotiation.

By pooling demand, we access wholesale-style tariff structures that are not advertised publicly. The savings can be substantial: 10–30% lower than going direct, according to industry benchmarks.

Comparison websites fall short

Generic comparison sites typically:

• Provide a list of links or automated quotes
• Rarely examine your actual statements or negotiate bespoke deals
• Do not manage set-up, integration, or ongoing liaison with the bank

You are left to navigate complex applications, decipher contract jargon, and handle integration yourself.

What We Offer

• Free, no-obligation cost analysis including upload of existing merchant statements
• Recommendations across 90% of the UK merchant services market
• End-to-end support from application and underwriting to gateway integration and terminal deployment

Admin burden avoided

• No need for the owner to fill in multiple complex forms for different banks
• One set of information shared securely, then handled by our brokerage team
• Ongoing support if volumes grow, new sites open, or additional terminals or gateways are required

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Who we help: examples of UK businesses and scenarios

Example 1: New independent café in Birmingham Needs its first card machine and POS integration. Unsure whether to choose pay-as-you-go or a merchant account. Worried about being tied into lengthy contracts. We recommended a flexible 12-month terminal deal with a blended rate suited to their projected £8,000 monthly turnover. For small businesses and start-ups, setting up a free online store can also be a cost-effective way to take credit card payments and accept orders for click and collect or local delivery.

Example 2: Multi-site salon chain in Manchester Already taking £80,000+ per month in card payments. Suspected they were overpaying on fees and terminal rental. A full statement audit revealed hidden costs of over £400 per month. Renegotiation via us cut their effective rate by 22%.

Example 3: Travel agency in London Struggling to get approved by mainstream providers due to “high-risk” categorisation. Needed both online booking payments and MOTO via a call centre. We placed them with a specialist acquirer experienced in ATOL-bonded travel, with a manageable 6% reserve released after 60 days post-departure.

Example 4: Start-up subscription box service Needed online recurring billing, dunning tools for failed payments, and competitive rates for both UK and EU cards. We matched them with a gateway offering tokenisation and automatic retry logic, saving hours of manual chasing each month.

In each scenario, we shortened timescales, reduced costs, and handled the technical liaison with gateways and banks so the owners could focus on running their business.

Customer satisfaction and support: keeping your card-paying customers happy

In today’s fast-paced market, customer satisfaction hinges on how easy and secure it is for people to pay. When your business accepts credit card payments – whether in person, online, or via contactless options like Apple Pay and Google Pay – you’re meeting your customers’ expectations for speed, convenience, and choice. This flexibility not only encourages more purchases but also increases the likelihood that customers will return, boosting loyalty and long-term value.

A seamless card payments experience means more than just having a card machine at the till. It’s about ensuring every transaction is processed quickly and securely, with minimal transaction fees and no unpleasant surprises from hidden costs. When customers know they can trust your payment process, they’re more likely to complete their purchases – especially for online sales, where trust and ease are critical.

Offering contactless payments and mobile wallets reduces wait times and queues, making the payment process almost effortless. This is especially important during busy periods, where a slow checkout can lead to lost sales and frustrated customers. By investing in reliable payment systems and transparent pricing, your business demonstrates a commitment to customer satisfaction, which translates into positive reviews, repeat business, and increased revenue.

Ultimately, prioritizing customer experience in your payments strategy is a win-win: your customers enjoy a smooth, secure way to pay, and your business benefits from higher sales and stronger customer relationships.

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Growing and scaling your business with the right payment solutions

As your business grows, your payment solutions need to keep pace. Accepting debit card payments and credit card payments isn’t just about convenience – it’s a foundation for scaling your operations and reaching more customers. The right payment processor and payment gateway can help you streamline your payment process, reduce transaction fees, and minimize the risk of costly chargeback fees as your transaction volume increases.

For businesses looking to expand, flexibility is key. Implementing a virtual terminal allows you to handle online transactions and phone orders with ease, while payment links make it simple to invoice customers and get paid fast – ideal for sole traders, mobile businesses, and those without a fixed physical location. These tools not only improve cash flow but also free up time to focus on growth.

Choosing scalable payment solutions means you can add new payment methods, accept credit and debit card payments across multiple channels, and manage everything from a single dashboard. This is essential for businesses moving into new markets, launching online sales, or opening additional locations. A robust payment system also provides detailed reporting, helping you track performance and spot opportunities for further expansion.

By prioritizing payment solutions that align with your business goals, you can unlock new revenue streams, improve customer experience, and stay ahead of the competition – whether you’re a small business just starting out or an established enterprise ready to scale.

How to get started: next steps for UK businesses wanting to take credit card payments

Ready to accept payments without overpaying? Here is a simple three-step process:

Step	What happens
1. Submit your details	Send recent merchant statements or, if you are new to cards, your estimated monthly turnover and average ticket size via the Free Cost Analysis page.
2. Receive your analysis	We compare your current or proposed fees against market benchmarks, highlighting savings and risk points in clear £ terms.
3. Go live with confidence	Agree a preferred provider and have us manage the application, underwriting, and set-up until your first live card transaction is processed.

The analysis is free, with no obligation to switch. Any proposed savings are quantified in pounds per month or per year to support board-level decisions.

If you operate in a high-risk sector – travel, events, subscriptions – contact our High-Risk Services team for specialist placement and advice on rolling reserves and PCI requirements.

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Key takeaways

• UK businesses can start accepting credit card payments within 24–72 hours with the right provider.
• In person, online, and MOTO channels each have different fees and fraud profiles – choose wisely.
• Hidden costs like PCI fees, minimum charges, and long term contracts can erode margins if you do not read the fine print.
• High-risk sectors need specialist acquirers; going direct often leads to rejections or punitive reserves.
• A broker like us uses volume leverage to negotiate below-market rates and handles the admin so you do not have to.

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Do not spend hours comparing confusing tariffs and terms yourself. Let an experienced UK broker secure better rates and a cleaner contract on your behalf – so you can concentrate on running your business.

Upload your merchant statement for a free analysis or contact us today to discuss your requirements.