Top 7 payment processors in the UK: Compare fees, features, and payout speeds

Key takeaways

• The right payment processing service cuts fees, supports the payment methods your customers prefer, and scales with your business into new markets.

• Fee structures vary widely — interchange-plus and subscription models usually save more at higher volumes than flat-rate pricing.

• Airwallex combines payment processing with multi-currency accounts, Corporate Cards, and Expense Management on one platform. So you can accept, hold, and settle payments globally without forced FX conversions.

Payment processing can make or break a business of any size. The right payment processing service lowers fees, keeps customers happy at checkout, and helps you move into new markets. The wrong one adds friction, piles on hidden costs, and slows your business down.

This guide compares the leading UK payment processing services in 2026. It covers how processing works, a side-by-side comparison of seven providers on fees and features, and how to pick the right one for your business.

What are payment processing services?

Payment processing services are the systems that move money from the customer to your business account. They sit between the issuing bank (the customer’s bank) and the acquiring bank (the merchant’s bank). They make sure each transaction is secure, approved, and settled the right way.

Think of the processor as the postal service that delivers the parcel. Meanwhile, the gateway is the front door where you hand it over. A payment gateway captures a customer’s payment details online or at checkout. It encrypts them and sends them to the processor for approval. The processor then does the heavy lifting. It routes funds, checks accounts, and settles payments into your account.

Beyond routing funds, a good payment processing service can:

• Accept many payment methods, including cards, digital wallets, bank transfers, buy now, pay later, and local payment options

• Handle security needs, including encryption, fraud checks, PCI DSS compliance, and Strong Customer Authentication (SCA)

• Support global growth by enabling multi-currency processing, offering like-for-like settlement, and giving access to local payment methods in new markets

• Provide data and reporting tools to help you reconcile accounts, forecast cash flow, and improve payment performance

By 2028, digital payments will account for 79% of eCommerce payments (up from 34% in 2014). They’ll also make up 53% of point-of-sale (POS) payments, up from just 3%. So, reliable processing is now central to business growth.

How payment processing works

For customers, the payment feels instant. But in the background, several systems share information. They check identity, reduce fraud, and move funds safely.

• Customer initiates payment. They enter card details, confirm with a digital wallet, or approve a bank transfer.

• Secure transmission. Data’s encrypted and sent through a payment gateway to the processor.

• Routing to banks. The processor sends details to the card network (such as Visa or Mastercard). The network then routes the request to the issuing bank.

• Verification. The issuing bank checks the account’s active. It also checks there are enough funds and that there aren’t fraud risks.

• Authorisation. If approved, the card network sends confirmation back to the processor and then to the merchant.

• Clearing and settlement. Funds are taken from the customer’s account, collected by the processor, and paid into the merchant’s account after the settlement period.

Each step affects your fees, payout speed, and security. That’s why picking the right processor matters.

Read more: Cash flow like a pro — your guide to third-party processors

Top payment processing services in the UK compared (2026)

Airwallex

Airwallex is a global finance platform, not just a payment processor. You get multi-currency accounts, Corporate Cards, local payment methods, and treasury management in one place.

• UK cards: 1.30% + £0.20 per transaction

• EEA cards: 2.40% + £0.20

• International cards: 3.15% + £0.20

• FX conversion: 0.5% above the interbank exchange rate for major currencies, 1% for others

• Over 160 local payment methods plus Apple Pay and Google Pay

• Like-for-like settlement in 14+ currencies across 180+ countries

• Payouts: 1–3 business days depending on currency and method

Unlike many providers, Airwallex brings payment acceptance, Expense Management, and global transfers into one dashboard. That makes it a strong fit for companies with international operations.

See Airwallex’s pricing plan and fee schedule in detail.

PayPal

PayPal’s a well-known checkout brand for UK customers. It also plugs into most eCommerce platforms with little effort.

• Domestic card payments (Advanced Credit and Debit Card): 1.2% + £0.30 fixed fee

• Standard commercial transactions (PayPal Checkout): 2.9% + £0.30 fixed fee

• International surcharge: +1.29% (EEA) or +1.99% (other regions)

• Payouts: instant to PayPal balance; 1–3 business days to bank

It’s strong on trust and usage. However, higher fees and 3% FX markups can cut into margins. It also has limited multi-currency holding (24 currencies). That doesn’t give the same like-for-like settlement as some rivals, so conversion costs can build up for international sellers.

Stripe

Stripe’s popular with developers and scale-ups that want flexible APIs.

• Standard UK cards: 1.5% + 20p

• Premium UK cards: 1.9% + 20p

• EEA cards: 2.5% + 20p

• International cards: 3.25% + 20p

• Currency conversion surcharge: +2%

• Payouts: T+3 calendar days (standard UK), instant available for a fee

It supports many payment methods and offers advanced fraud tools. Still, it often needs more technical time to set up and fine-tune.

Adyen

Adyen’s built for large firms that want one platform for payments, risk, issuing, and acquiring.

• Interchange++ pricing or blended pricing models

• Fixed processing fee of £0.11 plus method fee

• Settlement: 150+ currencies with like-for-like support

• Payouts: usually T+2 for card payments

Pricing is usually custom and needs enterprise contracts. So, if you don’t have a dedicated tech and payments team, setup may feel hard.

Shopify Payments

Shopify Payments is built into Shopify. That means merchants who use it can avoid third-party gateway fees.

• Basic plan: 2.0% + 25p per UK online card transaction

• Grow plan: 1.7% + 25p

• Advanced plan: 1.5% + 25p

• Third-party gateways: 0.6–2% extra depending on plan

• Payouts: 3–5 business days

Its main strength is simplicity. But it locks payouts to the merchant’s local currency. That can reduce flexibility and raise costs for businesses selling across borders.

Square

Square’s popular with small businesses that want in-person POS hardware as well as payments.

• In-person: 1.75% per transaction

• Online UK cards: 1.4% + 25p

• Online non-UK cards: 2.5% + 25p

• Keyed-in or invoice payments: 2.5%

• Payouts: next business day, instant transfers available for a fee

Pricing is clear and easy to follow. However, Square UK only settles in GBP and doesn’t offer multi-currency tools. That limits its use for cross-border work.

Revolut Business

Revolut Business mixes business account features with payment acceptance. It’s also strong on multi-currency support.

• UK Visa/Mastercard: 1% + 20p

• UK Amex: 1.7% + 20p

• International cards: 2.8% + 20p

• Plans: Free basic plan; paid tiers add features

• Payouts: typically 1–2 business days

• Settlement supported in 35+ currencies

It offers competitive card fees. But compared with full-service providers, its advanced payment tools are more limited. Support also depends on your plan tier.

Understanding payment processing fees

Payment processing fees can add up fast, especially if you sell overseas. So, it helps to understand pricing models. That way, you can choose the best fit for your volume and growth plans.

There are three main pricing models:

• Flat-rate pricing. You pay the same percentage on every transaction, no matter the card type. It’s like a fixed taxi fare. It’s predictable, but it’s not always the cheapest route. This suits smaller businesses with lower volumes that want simplicity over fine-tuning.

• Interchange-plus pricing. You pay the real interchange fee (set by card networks) plus a fixed markup from your processor. It’s like paying wholesale plus a handling fee. It’s clearer and often cheaper at scale. This suits growing businesses with higher volumes.

• Subscription or SaaS pricing. You pay a monthly fee plus a small per-transaction charge, with no percentage markup. It’s like a gym membership. The more you use it, the better value you get. This suits high-volume merchants that want the biggest savings.

Common hidden costs

Beyond the headline rate, look out for extras that can eat into your margin:

• FX markups: A common foreign transaction fee charged when you take payment in one currency but settle in another. These can range from 1% to 4% depending on the provider.

• Cross-border surcharges: Extra fees for cards issued outside the UK or EEA. These are often 1–2% on top of standard rates.

• Settlement fees: Some providers charge to convert funds before paying them into your account.

• Chargeback fees: Often £12–£25 per dispute, depending on the provider and dispute type.

Like-for-like settlement means you receive and hold funds in the same currency your customer paid in. That helps you avoid forced FX conversions and their costs. Airwallex offers this in 14+ currencies, so you only convert when you decide to.

How to choose a payment processing service

Whether you’re choosing a processor for the first time or thinking about switching, here are the key points to keep in mind.

Transparent costs: Check how fees work. Many providers promote low UK rates. But costs often rise when you take international cards or accept other currencies. So, watch for FX markups, cross-border fees, and settlement charges. Also ask for the full fee list upfront. That includes what happens when payments need to be converted.

Ease of use: A processor should make day-to-day work easier, not harder. Look for a simple dashboard. You should be able to see transactions, track which payments have settled, and reconcile them fast. If you’re juggling logins or downloading endless reports, the processor’s costing you time as well as money.

Integrations: Your processor should work with the tools you already use. For eCommerce, look for plug-and-play links with Shopify, WooCommerce, or Magento. For finance teams, make sure it connects to your accounting software. Then payments can flow straight into your books.

Scale: Think ahead by two or three years. Can your processor handle a jump in volume during peak seasons? Can it support new markets and new payment methods as you grow overseas? A scalable processor should grow with you.

Implementation: Getting started shouldn’t take months of technical work. Look for clear guides, simple onboarding, and quick customer support. If you have developers, the APIs should be well documented. If you don’t, the provider should offer no-code options, so you can start taking payments fast.

Key questions to ask payment processing services

• What’s the full fee structure, including FX and cross-border charges?

• Are there long-term contracts or exit fees?

• What security standards do you meet (PCI DSS, SCA)?

• How do you handle chargebacks and disputes?

• What’s the support model — 24/7, phone, email, or chat?

Why businesses choose Airwallex for payment processing

Airwallex brings together what businesses need to manage money globally, all in one platform. You can hold and settle in many currencies without hidden FX costs. You can also send and receive payments in 180+ markets, and issue multi-currency cards for your team.

• Accept payments in 130+ currencies with 160+ local payment methods

• Settle like-for-like in 14+ currencies — no forced conversions

• Manage payments, transfers, cards, and expenses from a single dashboard

• Transparent pricing with no hidden markups

• Integrations with Shopify, WooCommerce, Magento, and major accounting platforms

Who it’s suited for

Airwallex works for eCommerce businesses that sell across borders, SaaS companies with global subscribers, and exporters that manage more than one currency. Whether you’re a fast-growing start-up or an established enterprise expanding overseas, the platform scales with you. It connects accounts, payments, transfers, cards, and expenses. So your finance team gets a clearer view of cash flow across markets.

Explore our pricing or talk to our team to see how Airwallex can work for your business.

Disclaimer: The information in this article is based on our own online research in Q1 2026. Airwallex wasn’t able to manually test each tool or provider. The information is provided for educational purposes only, and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you’d like to request an update, feel free to contact us at [email protected]. This information doesn’t take into account your objectives, financial situation, or needs.

Frequently asked questions (FAQ)

What is a payment processing service?

A payment processing service is the tech and systems that move money from your customer’s bank to your business account. It handles checks, security, and settlement along the way. It sits between the issuing bank and acquiring bank to make sure transactions are approved and funds move correctly.

What should I look for in a payment processing service?

Look for clear pricing, multi-currency support, strong security standards like PCI DSS and SCA, fast payouts, and integrations with your eCommerce or accounting tools. Also check how the provider handles international cards and FX conversions, because these costs can add up fast.

What’s the difference between a payment gateway and a payment processor?

A payment gateway is the software that captures and encrypts customer payment details. The payment processor is the system that talks to banks and card networks to move the money. Many providers bundle both. Still, they do different jobs in the payment chain.

Are payment processing services secure?

Yes. Leading payment processing services follow PCI DSS and use encryption, tokenisation, and fraud tools. Before you sign up, check your provider meets UK and EU rules, including Strong Customer Authentication (SCA).

Sources and references

• paypal.com/uk/business/paypal-business-fees

• stripe.com/gb/pricing

• adyen.com/en_GB/pricing

• help.shopify.com/en/manual/payments/shopify-payments/supported-countries/united-kingdom

• squareup.com/gb/en/pricing

• revolut.com/business/pricing