Best Merchant Account Providers UK 2026: Compare Fees, Card Machines & Payment Services Quick answer
The best merchant account provider in the UK depends on your monthly card turnover, business type, payment method and whether you need card machines, online payments, virtual terminals, EPOS integration or custom transaction rates.
For established businesses, retailers, restaurants, cafés, salons and higher-volume SMEs, providers such as Worldpay, Barclaycard Payments, Elavon, Tyl by NatWest, Lloyds Cardnet, TakePayments, Dojo and Clover are all worth comparing.
For smaller businesses, sole traders, pop-ups and start-ups, payment service providers such as Square, SumUp and PayPal POS may be easier to set up, although they are not always traditional merchant account providers.
The best provider is not simply the one with the lowest headline rate. You should compare transaction fees, terminal rental, authorisation fees, PCI costs, settlement speed, contract length, chargeback fees and support.
Compare merchant account quotes and see whether your business could save up to 40% on card processing fees.
Contents
Best Merchant Account Providers (2026 Comparison)
How to Choose the Best Merchant Account
Merchant Account Fees Breakdown
Traditional vs Modern Providers
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: August 2026
Need a merchant account or card machine for your business? This quote service is best for UK businesses that want to take in-person card payments using:
a merchant account
card reader
countertop card machine
portable PDQ machine
mobile card terminal
Chip and PIN machine
contactless payment terminal
EPOS-integrated card machine
payment gateway or virtual terminal
It is not the best fit if you only need:
a personal PayPal account
one-off online payment links
website checkout only
casual personal payments
a consumer banking app
general payment advice without business card processing
Compare merchant account quotes
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Key Takeaways
The best merchant account provider depends on turnover, sector, payment method and card mix.
Traditional merchant account providers can be cheaper for established or higher-volume businesses.
Payment service providers such as Square, SumUp, PayPal POS and Stripe can be easier for small businesses and start-ups.
Worldpay, Barclaycard, Elavon, Tyl, Lloyds Cardnet, TakePayments, Dojo and Clover are all worth comparing for UK merchant services.
Square is not a traditional merchant account provider, but it can be a good payment service provider for small businesses.
Transaction fees are only one part of the cost.
Terminal rental, authorisation fees, PCI fees, chargebacks, settlement fees and contract length can affect the real price.
Businesses processing more than £5,000 to £10,000 per month by card should compare merchant account quotes.
Online payments, payment links and virtual terminals usually have different fees from in-person card machine payments.
Comparing providers can help reduce card processing costs by up to 40%.
Compare merchant account providers and find the best card payment setup for your business.
Best merchant account providers at a glance
Provider Best for Provider type Why compare i t
Worldpay
Established SMEs, retail, hospitality and higher turnover
Merchant services provider
Broad payment options and custom pricing
Barclaycard Payments
Businesses wanting bank-backed merchant services
Merchant acquirer/payment provider
Strong brand, merchant services and card machines
Elavon
Retail, hospitality and growing SMEs
Merchant services provider
In-store, mobile and online payment solutions
Tyl by NatWest
Small and growing businesses
Bank-backed payment provider
Clear pricing for smaller businesses and card machine options
Lloyds Cardnet
Established businesses and Lloyds customers
Merchant services provider
Merchant account and card payment services
TakePayments
SMEs wanting guided setup
Card machine and payment provider
Support-led quote process and card terminal options
Dojo
Hospitality, retail and regular card turnover
Payment provider/card machines
Modern terminals and competitive blended/custom pricing
Clover
Retail and hospitality needing EPOS
POS and payment provider
POS, card machines, apps and reporting
Square
Start-ups and small businesses
Payment service provider
Simple setup, flat-rate pricing and POS tools
SumUp
Sole traders and mobile sellers
Payment service provider
Low-cost card readers and simple fees
PayPal POS
PayPal users and small sellers
Payment service provider
Useful for PayPal-linked selling and flexible payments
Stripe
Online-first businesses
Payment service provider/payment platform
Strong online checkout and developer tools
Merchant account or payment service provider: which do you need?
Business need
Best option to compare first
Take regular in-person payments
Merchant account or card machine provider
Need lower rates than flat-fee card readers
Run a shop, café, restaurant, salon or pub
Merchant account/card machine provider
Need countertop or portable terminals
Merchant services provider
Need EPOS integration
Clover, Worldpay, Dojo, Square, TakePayments or EPOS provider
Sell mainly online
Stripe, PayPal, Worldpay, Shopify Payments or online gateway
Take occasional payments
Square, SumUp or PayPal POS
Need very fast setup
Process high monthly card turnover
Merchant account or custom pricing
Need virtual terminal or phone payments
Merchant account provider or payment gateway
Best Merchant Account Providers – 2026 Comparison
Provider Best For Monthly Fee Transaction Fees Best Benefit
Worldpay Established businesses
£15–£30
0.3%–1.5%
Scalable enterprise solution
Barclaycard Payments Trusted banking provider
£20–£40
0.35%–1.6%
Strong support & reliability
Elavon SMEs & retail
£15–£30
0.3%–1.6%
Tyl by NatWest Growing businesses
£0–£19
0.35%–1.5%
No setup fees
Square Small businesses
£0
~1.75%
No contract, simple pricing
PayPal Online businesses
£0
~1.9%+
Fast setup & global reach
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What is a merchant account? A merchant account is an account that allows a business to accept card payments from customers.
When a customer pays by debit card, credit card, contactless, Apple Pay or Google Pay, the payment does not usually go straight into your business bank account. It is processed through a payment provider and settled into your account after checks and processing.
A merchant account is commonly used with:
card machines
payment terminals
countertop terminals
portable card machines
mobile card machines
online payment gateways
virtual terminals
EPOS systems
ecommerce checkout
phone payments
Some businesses have a traditional merchant account with an acquirer.
Others use a payment service provider that bundles payment processing, settlement and tools into one simpler service.
Merchant account vs payment service provider This is where many businesses get confused.
A merchant account provider and a payment service provider can both help you accept card payments, but they are not always the same.
Feature Traditional merchant account
Examples
Worldpay, Barclaycard, Elavon, Lloyds Cardnet
Square, SumUp, PayPal POS, Stripe
Setup
More checks and underwriting
Usually faster
Pricing
Custom or blended rates
Monthly fees
Often yes
Best for
Established or higher-volume businesses
Start-ups and smaller businesses
Contracts
More common
Card machines
Wide terminal options
Usually simple readers or own hardware
Online payments
Often available
Often strong, especially Stripe/PayPal
Fee transparency
Can be more complex
Usually simpler
Long-term cost
Can be cheaper at scale
Can be more expensive at scale
Merchant Account Fees Breakdown
Fee type
What it means
Transaction fee
Percentage or pence-based fee on each card payment
Terminal rental
Monthly cost for card machine hardware
Authorisation fee
Small fee for approving a transaction
PCI compliance fee
Payment security compliance fee
Chargeback fee
Fee if a customer disputes a transaction
Refund fee
Charged by some providers when you refund customers
Minimum monthly fee
Minimum amount charged even if sales are low
Setup fee
One-off fee to open account or install service
Gateway fee
Monthly fee for online payment gateway
Virtual terminal fee
Fee for taking phone or manually keyed payments
Settlement fee
Fee or condition linked to payout timing
Cancellation fee
Statement fee
Charge for paper or account statements
Always ask for the full fee schedule before signing.
A low transaction rate can be cancelled out by high monthly fees.
Best merchant account by business type
Business type Best providers to compare first Why
Sole trader
Square, SumUp, PayPal POS
Simple setup and low commitment
Market trader
SumUp, Square, PayPal POS
Mobile readers and flexible payments
Small retailer
Square, Tyl, Dojo, Worldpay
POS tools and card machine options
Café
Square, Dojo, Tyl, Clover
Fast payments, POS and card machines
Restaurant
Dojo, Clover, Worldpay, TakePayments
Portable terminals, tipping and EPOS
Pub or bar
Dojo, Worldpay, Clover, Barclaycard
Reliability, speed and regular turnover
Salon
Square, SumUp, Dojo, Tyl
Appointments, card readers and flexible fees
Ecommerce store
Stripe, PayPal, Worldpay, Shopify Payments
Online checkout and gateway fees
B2B service business
Worldpay, Stripe, PayPal, Elavon
Online, invoice and virtual terminal options
High-volume retailer
Worldpay, Barclaycard, Elavon, Lloyds Cardnet
Custom rates and merchant acquiring
Multi-site business
Worldpay, Elavon, Barclaycard, Clover
Reporting, multiple terminals and support
Best merchant account by monthly card turnover
Monthly card turnover
Under £1,000
Square, SumUp or PayPal POS
£1,000-£5,000
Flat-rate providers vs entry-level card machine quotes
£5,000-£10,000
Dojo, Tyl, TakePayments and merchant account quotes
£10,000-£25,000
Worldpay, Barclaycard, Elavon, Lloyds Cardnet and Dojo
£25,000-£50,000
Multiple custom-rate merchant account quotes
£50,000+
Negotiated merchant pricing
Seasonal turnover
Flexible providers with low monthly costs
High average transaction value
Focus on percentage transaction rate
Low average transaction value
Watch fixed per-transaction fees
Traditional vs Modern Providers
Provider type Examples Pros Cons
Traditional merchant providers
Worldpay, Barclaycard, Elavon, Lloyds Cardnet
Custom pricing, scalable, strong for established businesses
More complex fees and contracts
Bank-backed providers
Tyl, Barclaycard, Lloyds Cardnet
Recognisable banking brands and business services
May not be cheapest for all users
Modern card machine providers
Dojo, TakePayments, Clover
Strong terminals, support and SME focus
Payment service providers
Square, SumUp, PayPal POS, Stripe
Fast setup, simple pricing, flexible
Can become expensive at higher turnover
How to choose the best merchant account Before choosing a merchant account provider, ask:
how much do you take by card each month?
what is your average transaction value?
do you take payments in person, online or over the phone?
do you need one terminal or several?
do you need countertop, portable or mobile card machines?
do you need EPOS integration?
do you take international cards?
do customers use business or corporate cards?
do you need next-day settlement?
do you need payment links?
do you need a virtual terminal?
do you want a short contract?
do you need online payment gateway support?
do you want simple flat-rate pricing or custom rates?
what support hours do you need?
what are your current fees?
The best merchant account is the one that reduces total cost without making payments harder to manage.
Hidden fees to check Before signing a merchant account contract, check:
terminal rental
transaction rates
debit card rates
credit card rates
commercial card rates
international card rates
authorisation fees
PCI fees
chargeback fees
refund fees
minimum monthly charges
settlement fees
gateway fees
virtual terminal fees
paper statement fees
setup fees
cancellation fees
early termination fees
hardware replacement fees
EPOS software fees
Always compare the effective monthly cost, not just the advertised rate.
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FAQs – Best Merchant Account Providers What is the best merchant account provider in the UK?
The best merchant account provider depends on your turnover and payment needs. Worldpay, Barclaycard, Elavon, Tyl by NatWest, Lloyds Cardnet, TakePayments, Dojo and Clover are all worth comparing.
Which merchant account has the lowest fees?
The lowest fees are usually available to businesses with higher card turnover and lower risk. Worldpay, Barclaycard, Elavon, Lloyds Cardnet and other merchant providers may offer custom rates.
Is Square a merchant account?
Square is not usually classed as a traditional merchant account provider. It is a payment service provider that bundles card processing, settlement and payment tools.
Is SumUp a merchant account?
SumUp is a payment service provider rather than a traditional merchant account. It can still be a good option for small businesses and sole traders.
Is PayPal POS the same as Zettle?
PayPal POS is the current PayPal point-of-sale product and is the option many businesses still associate with Zettle.
Do I need a merchant account to take card payments?
Not always. Businesses can accept card payments through payment service providers such as Square, SumUp, PayPal POS or Stripe without arranging a traditional merchant account separately.
When do I need a merchant account?
You should compare merchant accounts if you take regular card payments, want lower rates, need card machines, process higher turnover or want custom pricing.
What is better: PayPal or a merchant account?
PayPal can be easier to set up, especially for online and small businesses. A merchant account may be cheaper for established businesses with regular card turnover.
What is better: Square or a merchant account?
Square can be better for small businesses that want simple pricing and POS tools. A merchant account may be better for businesses wanting lower custom rates at higher turnover.
How much does a merchant account cost?
Merchant account costs vary. You may pay transaction fees, terminal rental, authorisation fees, PCI fees, gateway fees, chargeback fees and monthly service fees.
How long does it take to set up a merchant account?
Setup time varies by provider. Some online applications can be fast, while traditional merchant account approval may take longer depending on checks and business type.
Can I switch merchant account providers?
Yes. Businesses can switch merchant account providers, but you should check contract length, cancellation fees, terminal return rules and settlement timing.
What is the cheapest merchant account for small businesses?
The cheapest option depends on card turnover. Very small businesses may be better with Square, SumUp or PayPal POS, while growing SMEs should compare merchant account quotes.
What is the best merchant account for restaurants?
Restaurants should compare Dojo, Worldpay, Clover, TakePayments, Tyl, Barclaycard and Elavon. Portable terminals, tipping, split bills and EPOS integration matter.
What is the best merchant account for retail?
Retailers should compare Worldpay, Barclaycard, Elavon, Clover, Tyl, TakePayments and Square. EPOS, stock, settlement and transaction fees are important.
What is the best merchant account for ecommerce?
Stripe, PayPal, Worldpay, Shopify Payments and other online payment gateways are worth comparing for ecommerce businesses.
Are merchant account fees negotiable?
Yes, especially if you have higher card turnover, a good trading history or competing quotes.
What should I compare before choosing a merchant account?
Compare transaction fees, terminal rental, PCI fees, authorisation fees, gateway fees, chargebacks, settlement speed, contract terms and support.
Compare Merchant Accounts
If you want tailored pricing based on your turnover, industry and risk profile, use our comparison tool to review UK merchant account providers side by side.
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👉 Compare Merchant Account Quotes Now
Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
