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

Key takeaways

• Fee structures vary a lot. Interchange-plus and subscription models usually save more at higher volumes than flat-rate pricing.

• The right processor cuts costs, supports the payment methods your customers prefer, and can scale with you into new markets.

• 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, no matter its size. The right processor 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.

Below, we compare seven UK payment processors on fees, features, and payout speeds. We also explain how processing fees work, the difference between PSPs and merchant accounts, and how to choose the right setup 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, which is the customer's bank, and the acquiring bank, which is the merchant's bank. Their job is to make sure each transaction is secure, approved, and settled correctly.

Think of the processor as the postal service that delivers the parcel, whilst 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 those details and sends them to the processor for approval. Then the processor does the heavy lifting. It routes funds, checks accounts, and settles payments into your account.

But a good processor does more than just move money:

• 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)

• Help you grow globally with multi-currency processing, like-for-like settlement, and local payment methods in new markets

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

• Let you accept payments without a full website, through Payment Links, invoices, or QR codes

There are over 2,000 payment service providers operating in the UK, so comparing the leading options matters. 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%. Reliable processing is now central to business growth.

How payment processing works

For customers, a payment feels instant. In the background, though, several systems are sharing 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 is 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 that the account is active. It also checks there are enough funds and that there are no fraud risks.

• Authorisation. If the payment is 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 in that chain adds a cost. So before you compare processors, it helps to know how those costs break down.

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

Understanding payment processing fees

Payment processing fees can add up quickly, especially if you sell overseas. Once you understand how they work, it's much easier to choose the best fit for your volume and growth plans.

How a card payment fee breaks down

Every card transaction has three layers of fees. Together, these make up the merchant discount rate. Think of it like a restaurant bill with a service charge and VAT. The food cost is interchange, the service charge is the scheme fee, and the tip is the processor's markup.

• Interchange fee. This is set by Visa or Mastercard and paid to the issuing bank. For UK consumer debit cards, it is typically 0.2%. For consumer credit cards, it is capped at 0.3% under the Interchange Fee Regulation.

• Scheme fee. This is charged by the card network itself. It is usually around 0.02–0.05% per transaction.

• Processor markup. This is the processor's own charge for handling the transaction. It varies widely by provider.

Here's a concrete example. On a £100 UK consumer debit card transaction, you might pay 0.2% interchange (£0.20) + 0.02% scheme fee (£0.02) + 1.0% processor markup (£1.00) = £1.22 total, or 1.22%.

Once you understand those layers, it's easier to see where your costs are coming from and where you might be able to negotiate. Learn more about how interchange fees work.

Three pricing models compared

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: predictable, but not always the cheapest route. This suits smaller businesses processing under ~£10k/month 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: clearer and often cheaper at scale. This suits growing businesses processing £10k–£50k/month or more.

• 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 processing £50k+/month that want the biggest savings.

Hidden costs to watch for

Beyond the headline rate, there are a few 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. Typically £15 or more 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 the costs that come with them. Airwallex offers this in 14+ currencies, so you only convert when you decide to.

PSP vs merchant account: Which do you need?

Before you compare processors, it helps to understand the two main models for accepting payments.

A Payment Service Provider (PSP), sometimes called an aggregator, lets you start accepting payments quickly under a shared master merchant account. Think of it like renting a desk in a co-working space. You're up and running fast, but you share the building with other businesses. Stripe, PayPal, Square, and Airwallex all work this way.

A dedicated merchant account means you have your own account with an acquiring bank. It's like leasing your own office. It takes longer to set up and often needs more paperwork, but you get more control and potentially lower fees at very high volumes. Providers like Worldpay and Barclaycard usually operate this way.

Most of the processors in this comparison are PSPs, and that suits the majority of UK businesses. If you're processing very high volumes or you work in a specialist industry, a dedicated merchant account may be worth exploring.

Top payment processors in the UK compared (2026)

Here's how seven of the most popular UK payment processors compare on the metrics that matter most.

Other major UK processors, like Worldpay and Barclaycard, use dedicated merchant account models with custom pricing. We've focused here on PSPs that most growing businesses can sign up for directly.

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 all 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

• Accept payments without a website using Payment Links

Most processors only handle payment acceptance. Airwallex also brings Expense Management and global transfers into the same dashboard. That makes it a strong fit for companies with international operations.

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

PayPal

PayPal is a well-known checkout brand for UK customers. It also plugs into most eCommerce platforms with little effort.¹

• 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. But higher fees and 3% FX markups can cut into margins. It also has limited multi-currency holding, at 24 currencies. That doesn't give you the same like-for-like settlement as some rivals, so conversion costs can build up for international sellers.

Stripe

Stripe is popular with developers and scale-ups that want flexible APIs.²

• 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 takes more technical time to set up and fine-tune.

Adyen

Adyen is built for large firms that want one platform for payments, risk, issuing, and acquiring.³

• 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 tied to enterprise contracts, so smaller businesses without a dedicated payments team may find onboarding complex.

Shopify Payments

Shopify Payments is built into Shopify. So if a merchant uses it, they can avoid third-party gateway fees.⁴

• Basic plan: 2.9% + 30¢ USD per online card transaction

• Grow plan: 2.7% + 30¢ USD

• Advanced plan: 2.5% + 30¢ USD

• Third-party gateways: 0.2–2% extra depending on plan (Basic: 2%, Grow: 1%, Advanced: 0.6%, Plus: 0.2%)

• 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 is popular with small businesses that want in-person POS hardware as well as payments.⁵

• 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. But Square UK only settles in GBP and doesn't offer multi-currency tools. That limits how useful it is for cross-border work.

Revolut Business

Revolut Business mixes business account features with payment acceptance. It's also strong on multi-currency support.⁶

• 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.

How to choose a payment processor

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

• Transparent costs. Check how fees work. A lot of providers promote low UK rates, but costs often go up when you take international cards or accept other currencies. Watch for FX markups, cross-border fees, and settlement charges. Ask for the full fee list upfront, including what happens when payments need to be converted.

• Ease of use. A processor should make day-to-day work easier, not harder. Can you see all your transactions, settlement status, and reconciliation in one dashboard without downloading CSV files? If you're juggling logins or pulling endless reports, the processor is 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 gateway integrations with Shopify, WooCommerce, or Magento. For finance teams, make sure it connects to your accounting software so payments 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 quickly.

Key questions to ask payment processors

• 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?

When to use more than one processor

Many businesses use a primary processor for their main checkout and then add a second option for specific needs. You might use one processor for domestic transactions and another for international payments, or add PayPal at checkout because some customers prefer it.

For example, an eCommerce business might use Airwallex for multi-currency checkout and settlement, whilst also offering PayPal at checkout because some customers trust it more. The key is to make sure both processors integrate cleanly with your platform and that you're not paying double fees when you don't need to.

If you're looking for a processor that ticks most of these boxes from the start, here's why businesses choose Airwallex.

Why businesses choose Airwallex for payment processing

Airwallex puts payment acceptance, multi-currency accounts, Corporate Cards, and Expense Management on one platform, so you don't need separate tools for each job. You can hold and settle in many currencies without hidden FX costs, 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 with 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 startup 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.

Frequently asked questions (FAQ)

What is a payment processing service?

It's the tech that moves money from your customer's bank to your business account. It sits between the issuing bank and the acquiring bank, handling security checks, fraud screening, and settlement along the way.

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, but they do different jobs in the payment chain.

How many payment processors are there in the UK?

There are hundreds of payment service providers in the UK, which is why comparing the leading options matters. Most growing businesses will choose from a handful of well-known PSPs like Stripe, PayPal, or Airwallex.

Is there a UK alternative to PayPal?

Yes. Several processors work well as PayPal alternatives in the UK. Stripe offers strong developer tools and broad payment method support. Airwallex adds multi-currency accounts and like-for-like settlement for businesses selling internationally. Square is a good option if you also need in-person POS hardware.

Are payment processing services secure?

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

Sources and references

1. https://www.paypal.com/uk/business/paypal-business-fees

2. https://stripe.com/gb/pricing

3. https://www.adyen.com/en_GB/pricing

4. https://help.shopify.com/en/manual/payments/shopify-payments/supported-countries/united-kingdom

5. https://squareup.com/gb/en/pricing

6. https://www.revolut.com/business/pricing

Disclaimer: The information in this article is based on our own online research in Q2 2026. Airwallex was not 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 would like to request an update, feel free to contact us at [email protected]. This information does not take into account your objectives, financial situation, or needs.