Last Updated on September 8, 2026
The Whito stage check
Compare Stripe, PayPal, Square & more
Payment processing is not admin.
Note: For UK service businesses taking payments online, Stripe is the default choice. It handles one-off payments, subscriptions, and invoicing. Setup takes under an hour. If most of your sales happen at a till, start with Square, SumUp or Zettle instead. Stripe does sell card readers, but its ecosystem is built for online.
It is margin control.
If your fees are wrong, profit leaks.
If your checkout is slow, conversion drops.
If payouts are delayed, cashflow tightens.
Note: Payment processing fees in the UK typically range from 1.4% to 2.9% per transaction. On £10,000 monthly turnover, that is £140 to £290. Compare total cost including monthly fees, not just the per-transaction rate. A lower percentage with a £19 monthly fee can cost less than a higher percentage with no monthly fee, but only past a break-even volume. The worked examples below show where that line sits.
Most businesses choose a processor because it is familiar.
Few calculate the real cost.
This guide compares the payment processors UK businesses use, with rates taken from each vendor’s own pricing page on 3 September 2026, and shows what each one costs at your volume.
Processors differ on six things: transaction fees, settlement speed, hardware, invoicing, subscription handling and international cards. The wrong processor does not break your business. It quietly erodes it.
Quick comparison snapshot
| Platform | Best For | In-Person Fees | Online Fees (UK cards) | Monthly Fee |
|---|---|---|---|---|
| Stripe | Online-first businesses | 1.4% + 10p (Terminal) | 1.5% + 20p | None |
| Square | Retail & POS | 1.75% | 1.4% + 25p | None on free plan |
| SumUp | Small retailers | 1.69% (0.99% on Plus) | 2.5% (payment links) | £0, or £19 for Plus |
| Zettle | Mobile and market traders | 1.75% | 2.5% (links, existing sellers) | None |
| PayPal | Brand-trust checkout | Via Zettle | 2.9% + 30p | None |
| GoCardless | Direct Debit | N/A | 1% + 20p, capped at £4 | None on Standard |
| Worldpay | Larger merchants | Custom pricing | Custom | Varies |
Fees vary by volume, card type and contract. The full table further down adds hardware costs, payout speed, non-UK card surcharges and the catches.
What this costs at £3,000, £10,000 and £25,000 a month
Percentages hide the money. Here is the same maths in pounds.
In-person takings, assuming a £25 average sale. In-person plans charge a flat percentage with no fixed pence, so the average sale barely matters here.
| Provider | £3,000 a month | £10,000 a month | £25,000 a month |
|---|---|---|---|
| Revolut Reader, 0.8% + 2p plus £10 Basic plan (UK consumer cards only) | £36.40 | £98.00 | £230.00 |
| Tide, 1.5% | £45.00 | £150.00 | £375.00 |
| SumUp Payments Plus, 0.99% + £19 a month | £48.70 | £118.00 | £266.50 |
| SumUp pay as you go, 1.69% | £50.70 | £169.00 | £422.50 |
| Square free plan, 1.75% | £52.50 | £175.00 | £437.50 |
| Zettle, 1.75% | £52.50 | £175.00 | £437.50 |
Online sales, assuming a £50 average order. Fixed pence fees matter here: the more orders you take for the same money, the more 20p and 25p fees you pay.
| Provider | £3,000 a month | £10,000 a month | £25,000 a month |
|---|---|---|---|
| Stripe, 1.5% + 20p | £57.00 | £190.00 | £475.00 |
| Square online, 1.4% + 25p | £57.00 | £190.00 | £475.00 |
| SumUp payment links, 2.5% | £75.00 | £250.00 | £625.00 |
| PayPal, 2.9% + 30p | £105.00 | £350.00 | £875.00 |
| GoCardless Direct Debit, 1% + 20p capped at £4 (£250 average invoice) | £32.40 | £108.00 | £270.00 |
Four break-even lines:
Stripe and Square online cost the same at exactly a £50 average order. Below £50, Stripe’s lower fixed fee wins. Above £50, Square’s lower percentage wins.
SumUp Payments Plus pays for its £19 fee past about £2,700 a month of in-person takings against SumUp pay as you go, and past £2,500 against Square’s free plan.
On a £500 invoice, GoCardless costs £4. The same invoice on a 2.9% + 30p card checkout costs £14.80.
Roughly past £10,000 a month in card volume, a negotiated interchange-plus merchant account starts to beat every flat rate on this page. Below that, the admin, contracts and PCI paperwork eat the saving.
Work out your own numbers
Enter your monthly card takings and how you take them. This uses the standard published rates checked on 3 September 2026, including each provider’s non-UK card surcharge where one is published.
The UK reality check
| Provider | In person | Online UK cards | Non-UK cards | Monthly fee | Hardware from | Payout | Watch for |
|---|---|---|---|---|---|---|---|
| Stripe | 1.4% + 10p (Terminal) | 1.5% + 20p | EEA 2.5% + 20p, other 3.15% + 20p, plus 2% conversion | None | £49 reader | 2 to 3 days standard, instant costs 1% (min 40p) | Chargeback handling is on you, and premium UK cards are 2.8% + 20p |
| Square | 1.75% | 1.4% + 25p | Add 1.5 percentage points | None on free plan, Plus from £29 | £19 reader | Next day, instant costs 1.5% | Invoices and keyed-in payments cost 2.5% |
| SumUp | 1.69%, or 0.99% on Payments Plus (£19 a month) | 2.5% payment links | Not published | £0, or £19 | £25 Solo Lite | Next day at 7am into the SumUp business account, weekends included | The online rate is 2.5%, not the 1.69% headline |
| Zettle | 1.75%, Amex included | 2.5% links and invoices (existing sellers only) | 1.75% in person | None | £29 first reader, £69 after | To your PayPal balance within minutes | PayPal account holds, and new sellers cannot currently get payment links |
| PayPal | Via Zettle | 2.9% + 30p | Add 1.29 points (EEA) or 1.99 points, plus 3% conversion | None (Pro is £20) | n/a | To your PayPal balance | Reserves and holds, £14 chargeback fee |
| GoCardless | n/a (Direct Debit) | 1% + 20p, capped at £4 | International 2% + 20p | None on Standard | n/a | Tied to the Direct Debit cycle | Not cards, and payments over £2,000 add 0.3% |
| Tide | 1.5% | n/a | Not published | None | £59 reader | 1 to 3 working days into a Tide account | You need a Tide business account |
| Revolut | 0.8% + 2p (UK consumer cards) | 1% + 20p (UK consumer cards) | 2.6% + 2p in person, 2.8% + 20p online, business cards too | Plans from £10 | £129 Lite terminal | 24-hour settlement | The 0.8% headline excludes business and non-UK cards |
| Dojo | 1.2% blended, only under £100k a year card turnover | n/a | Included in blended rate | Free, or Plus at £11.99 (usually £25) | £149 upfront or £15 to £25 a month rental | Next day | Hardware and software costs sit on top of the 1.2% |
| Worldpay | Quote-based | Quote-based | Quote-based | Quote-based | Varies | Varies | Contract length and exit fees |
Platform Breakdown
Stripe
Best for: Online businesses and SaaS.
Rate (checked 3 Sep 2026): 1.5% + 20p online UK cards, 1.4% + 10p in person via Terminal.
Hardware from: £49 (BBPOS WisePad 3).
Settlement: 2 to 3 days standard, instant payout costs 1% (minimum 40p).
The failure mode: chargebacks. Stripe passes the dispute work and the risk to you.
Strengths:
Developer-friendly
Subscription management
Strong API
International support
Limitations:
Requires technical setup
Chargeback management responsibility
Use if:
Online checkout drives revenue.
Avoid if:
You mainly need a till. Terminal works, but Square and SumUp make in-person simpler.
Square
Best for: Retail and hybrid businesses.
Rate (checked 3 Sep 2026): 1.75% in person, 1.4% + 25p online UK cards, 2.5% on invoices and keyed-in payments.
Hardware from: £19 (Square Reader).
Settlement: next day, instant transfer costs 1.5%.
The failure mode: the 2.5% invoice rate. Businesses pick Square for the 1.4% and then send half their revenue as invoices.
Strengths:
Integrated POS hardware
Inventory tracking
Simple setup
Limitations:
Less flexible for complex online models
Use if:
You sell in person and online.
Avoid if:
You require advanced subscription logic.
SumUp
Best for: Micro and small retailers.
Rate (checked 3 Sep 2026): 1.69% in person, or 0.99% with Payments Plus at £19 a month. Payment links are 2.5%.
Hardware from: £25 (Solo Lite, ex VAT).
Settlement: next day at 7am into the SumUp business account, weekends and bank holidays included.
The failure mode: assuming the 1.69% applies online. It does not, links are 2.5%.
Strengths:
Low-cost hardware
Simple onboarding
Flat fees
Limitations:
Limited advanced reporting
Use if:
You need a quick POS setup.
Avoid if:
You require complex integrations.
Zettle
Best for: Mobile traders, market stalls and anyone already living in PayPal.
Zettle is PayPal's card reader business, and it is a different product from PayPal checkout. The rate is flat and the payout is the fastest on this page, because the money lands in your PayPal balance rather than waiting on a bank transfer.
Rate (checked 3 Sep 2026): 1.75% in person, American Express included. Payment links and invoices are 2.5%, currently for existing sellers only.
Hardware from: £29 ex VAT for your first reader (£69 after), terminal from £149.
Settlement: your PayPal balance within minutes. Moving it on to a bank account is a separate step.
The failure mode: PayPal account holds. If PayPal freezes or reserves your account, your card takings are inside it.
Strengths:
Fastest access to funds here
Flat rate covers Amex
Free POS app on the terminal
Limitations:
Everything routes through your PayPal account
Payment links closed to new sellers at the time of checking
Use if:
You trade at markets, events or on the move, or you already run your business through PayPal.
Avoid if:
You want your takings settling straight into your own bank account.
PayPal
Best for: Consumer-facing checkout trust.
Rate (checked 3 Sep 2026): 2.9% + 30p online. Non-UK cards add 1.29 to 1.99 percentage points, and currency conversion is 3%.
Hardware: in-person payments go through Zettle, above.
Settlement: to your PayPal balance.
The failure mode: reserves and holds. PayPal can hold funds under review, and chargebacks cost £14.
Strengths:
Brand recognition
Express checkout
Buyer protection
Limitations:
Higher transaction fees
Account risk reviews
Use if:
Your audience expects PayPal.
Avoid if:
Margins are tight and average order value is low.
GoCardless
Best for: Recurring payments and Direct Debit.
Rate (checked 3 Sep 2026): 1% + 20p, capped at £4 for domestic payments. Payments over £2,000 add 0.3%. International is 2% + 20p.
Hardware: none, it is bank-to-bank.
Settlement: tied to the Direct Debit cycle, typically a few working days after collection.
The failure mode: it is not cards. Nothing here helps a walk-in customer pay you.
Strengths:
Low-cost recurring billing
UK bank integration
Predictable fees
Limitations:
Not suitable for one-off card payments
Use if:
You run memberships, retainers, or invoices.
Avoid if:
You rely on card checkout.
Worldpay
Best for: Larger UK merchants.
Rate: not published, quote-based. That is normal at this end of the market, and it means everything is negotiable.
Hardware: varies by contract.
Settlement: varies by contract.
The failure mode: lock-in. Contract length, terminal rental and exit fees are where merchant accounts claw back what the headline rate gave away.
Strengths:
Custom pricing
Established banking relationships
High-volume capability
Limitations:
Longer contracts
Less flexibility for startups
Use if:
You process significant monthly volume.
Avoid if:
You want flexible month-to-month contracts.
Also consider
Three names that keep coming up, in one line each, plus who they fit.
Dojo. A 1.2% blended rate, but read the conditions: it only applies under £100,000 a year in card turnover, and hardware (£149 upfront or £15 to £25 a month) plus any software plan sit on top. Payouts land next day. Compare the all-in monthly cost, not the headline, against SumUp Payments Plus.
Tide. A £59 reader, a flat 1.5% and no monthly fee, if you bank with Tide. Payouts take 1 to 3 working days into the Tide account. Simple and cheap for Tide customers, pointless for everyone else.
Revolut Business. The cheapest published in-person rate here at 0.8% + 2p, but only for UK consumer cards. Business and non-UK cards jump to 2.6% + 2p, and you need a Revolut Business account (plans listed from £10 a month). If your customers are mostly UK individuals paying by personal card, it is the cheapest rate on this page.
Larger online sellers also see Mollie and Checkout.com pitched at them, and the high street is full of merchant-account resellers such as takepayments and Elavon. All are quote-based at business volumes, so the same rule applies: get the full monthly cost in writing, including hardware, minimums and exit fees.
Where Pay by Bank fits
Pay by Bank (open banking payments) lets a customer approve a bank transfer from inside their own banking app. The payment runs bank to bank, with no card scheme in the middle.
Revolut publishes Pay by Bank at 1% + 20p online, capped. GoCardless has built recurring versions with same-day settlement. On a £400 invoice, that is the difference between roughly £4 and the £11 to £12 a card checkout takes.
The catches: your customer's bank app has to support it, and refunds and disputes work differently without a card scheme behind them. Variable recurring payments, pitched as the successor to Direct Debit, are still rolling out.
The practical move in 2026: keep cards as the default, and offer Pay by Bank on invoices and high-value payments where the saving is biggest.
Settlement Speed
Cashflow matters, and the spread between providers is wide.
Zettle pays your PayPal balance within minutes. SumUp pays next day at 7am, weekends included, into its business account. Square pays next day. Stripe takes 2 to 3 days on the standard schedule.
Faster options cost real money: Stripe instant payouts take 1% (minimum 40p) and Square instant transfers take 1.5%. If you rely on daily working capital, payout speed is strategic, and paying 1% for it is a loan by another name.
Subscriptions & recurring payments
If you run:
Memberships
Retainers
SaaS
Installment plans
Ensure the processor supports:
Automated recurring billing
Failed payment retries
Dunning management
Stripe and GoCardless lead here.
Invoicing Needs
Some processors include:
Branded invoice links
Automated reminders
Payment tracking
If you send regular invoices, built-in tools reduce admin. Watch the rate though: invoices cost 2.5% on Square and Zettle, against 1% capped at £4 on GoCardless.
Otherwise, integrate with accounting software.
Hardware Considerations
Retail businesses need:
Card readers
POS terminals
Inventory sync
Reader prices, ex VAT, checked 3 September 2026: Square £19, SumUp Solo Lite £25, Zettle £29, Stripe £49, Tide £59. Full terminals run £129 (Revolut Lite) to £249 (Stripe Reader T600). At Start stage the £19 versus £79 decision matters more than 0.06% on the rate.
Square and SumUp dominate simplicity. Worldpay supports larger retail operations.
Integration Considerations
Check compatibility with:
E-commerce platform
Booking systems
Accounting software
CRM
Subscription tools
Disconnected systems create reconciliation problems.
International Payments
If you sell abroad:
Check FX fees
Cross-border surcharge
Multi-currency support
If 15% of your cards are non-UK, Stripe's blended online rate is about 1.75% + 20p rather than 1.5% + 20p, and Square in person blends to about 1.98%. PayPal adds up to 1.99 points plus 3% conversion. Model your actual card mix in the calculator above before choosing on the domestic rate.
Common buying mistakes
Choosing based on familiarity alone.
Reading the in-person headline and paying the 2.5% online rate.
Ignoring blended transaction cost.
Overlooking chargeback policies.
Not calculating annual fee impact.
Failing to model cross-border costs.
Payment processing is infrastructure.
Mistakes compound quietly.
Who should choose what
| Business Type | Recommended Direction |
|---|---|
| Online service business | Stripe |
| E-commerce brand | Stripe + PayPal |
| Membership business | Stripe or GoCardless |
| Retail store | Square or SumUp |
| Market stall or mobile trader | Zettle or SumUp |
| Retainer or invoice business | GoCardless, with Pay by Bank for one-offs |
| High-volume merchant | Negotiated merchant account (Worldpay and similar) |
Match processor to revenue model.
Payment questions UK businesses actually ask
What does taking cards actually cost a small shop?
What is the best card machine for a market stall?
Why is my online rate higher than my in-person rate?
What is the cheapest way to take online payments in the UK?
When does a traditional merchant account beat Stripe and Square?
When should you leave Stripe?
How do I stop chasing invoice payments?
Direct Debit or card-on-file for retainers?
Is Klarna or a BNPL option worth adding?
Whito Takeaway
Payment processors affect: Margin, Cashflow, Checkout conversion, Operational efficiency Choose based on: Transaction volume, Revenue model, Hardware needs, Subscription requirements, International exposure Small percentage differences compound. Structure before scale.
See how real UK businesses do this well
Our Stolen With Pride series breaks down smart marketing moves from real UK businesses. No theory, just practical ideas you can use. See how Surreal Cereal turned LinkedIn into a free marketing channel, how Bloom & Wild’s email opt-out built more loyalty than any campaign, and more.
Rates checked on vendor pricing pages, 3 September 2026. Providers change their prices often, so always confirm the current figure on the vendor site before you commit.
Frequently asked questions
Which payment processor is best for a UK business?
It depends on where you sell: online-first businesses often favour Stripe or PayPal, while in-person sellers lean towards a card reader from the likes of Square, SumUp or Zettle. Many small firms end up using one for the website and another for the till. The best processor is the one that fits how your customers pay you.
How much do payment processors charge in the UK?
Most charge a percentage plus a small fixed fee per transaction, with rates varying by card type and whether the sale is online or in person. Some use simple flat pricing, others tiered or interchange-plus. Read the fee table for your typical transaction size, since a tiny percentage difference adds up over a year.
Are there monthly fees or just per-transaction costs?
Many popular processors charge per transaction with no monthly fee, which suits low or seasonal volume well. Higher-volume sellers can sometimes get lower rates on a monthly plan. Run your expected monthly turnover through both models, because the cheaper option flips as your sales grow.
Is the processor secure and UK compliant?
Reputable processors are PCI compliant and handle the heavy lifting of card security, including Strong Customer Authentication for UK and EU payments. Check that it supports the payment methods your customers expect, such as Apple Pay and Google Pay. Compliance is non-negotiable, so do not cut corners on a lesser-known provider.
