How to Get a Merchant Account UK: Complete Guide 2026
How to Get a Merchant Account in the UK
Quick Answer: Getting a merchant account in the UK involves five main steps: determining your account type (standard or high-risk), preparing required documentation, choosing a payment provider, submitting your application, and activating your card machine. Standard accounts typically approve within 24-48 hours, while high-risk accounts take 3-10 days. At We Tranxact, we guide UK businesses through the entire process and connect them with suitable providers.
Understanding Merchant Accounts
A merchant account is a type of business bank account that allows you to accept card payments from customers. When a customer pays by card, funds first go to your merchant account, then transfer to your business bank account (usually within 1-7 days depending on your provider and account type).
What Merchant Accounts Enable
- Card present payments: Customers pay using physical card machines (countertop, portable, or mobile terminals)
- Card not present payments: Process online payments, phone orders, or mail orders through payment gateways
- Contactless payments: Accept tap payments up to £100, Apple Pay, Google Pay
- Recurring billing: Set up subscriptions or regular payments
- Multi-channel processing: Accept payments in-store, online, and via mobile in one account
Step 1: Determine Your Account Type
Before applying, identify whether you need a standard or high-risk merchant account. This affects approval time, costs, and provider options.
Standard Merchant Accounts
You need a standard account if you operate in:
- Retail (clothing, electronics, gifts, books, hardware)
- Hospitality (restaurants, cafés, hotels, pubs)
- Professional services (accountants, solicitors, consultants)
- Beauty and wellness (salons, spas, barbers)
- Fitness (gyms, studios, personal trainers)
- Healthcare (dentists, opticians, clinics)
- Automotive (garages, car washes)
- Home services (plumbers, electricians, builders)
Characteristics:
- Approval: 24-48 hours (automated)
- Lower transaction fees
- No rolling reserves typically
- Monthly rolling contracts common
Read our complete guide to standard merchant accounts
High-Risk Merchant Accounts
You need a high-risk account if you operate in:
- Gaming and gambling
- CBD and hemp products
- Peptides and research chemicals
- Supplements and nutraceuticals
- Adult industry
- Travel and ticketing
- Subscription and continuity businesses
- Crypto and forex
- E-cigarettes and vaping products
Characteristics:
- Approval: 3-10 days (manual review)
- Higher transaction fees
- Rolling reserves sometimes required
- Fixed-term contracts common
Read our complete guide to high-risk merchant accounts
Not Sure Which You Need?
If your business has any of these characteristics, you likely need a high-risk account:
- Previous merchant account terminations
- Chargeback ratio above 1%
- Average transaction value over £1,000
- Delivery timescales over 30 days
- Primarily international sales (non-UK/EU)
- Age-restricted products
Compare standard vs high-risk merchant accounts
Step 2: Prepare Required Documentation
Complete applications with all documentation are approved fastest. Gather everything before starting your application.
Business Documentation
For limited companies:
- Certificate of Incorporation (Companies House registration)
- Company registration number
- Registered office address proof
- Articles of Association
- Shareholder register (if multiple shareholders)
- Trading name documentation (if different from registered name)
For sole traders:
- Self-assessment tax return (SA302)
- UTR (Unique Taxpayer Reference) number
- Proof of trading address
- Business bank statements (3-6 months)
Personal Identification
For all directors and beneficial owners (25%+ shareholding):
- Valid passport or UK driving license
- Proof of address within 3 months (utility bill, bank statement, council tax bill)
- National Insurance number
- CV/Resume (particularly important for new businesses)
Banking Information
- UK business bank account details (sort code and account number)
- Business bank statements (3-6 months for existing businesses)
- Previous payment processing statements (if you currently accept cards)
- Financial projections for next 12 months (for new businesses)
- VAT registration certificate (if VAT registered)
Website and Business Information
Your website must be live and include:
- Clear product or service descriptions with pricing
- Comprehensive Terms & Conditions
- GDPR-compliant Privacy Policy
- Clear Refund and Returns policy
- Complete contact information (registered address, phone, email)
- Delivery timescales clearly stated
- About Us page with company information
- SSL certificate installed (https://, not http://)
Additional business information needed:
- Estimated monthly processing volume
- Average transaction value
- Highest anticipated single transaction
- Geographic breakdown of customers
- Delivery timescales
View complete application checklist
Step 3: Choose Your Payment Provider
Don’t accept the first provider you find. Compare multiple options to ensure competitive pricing and suitable terms.
Provider Types
Pay-as-you-go providers (SumUp, Square, Zettle):
- Best for: Low-volume businesses (under £5,000 monthly)
- Pros: No monthly fees, no contracts, quick setup
- Cons: Higher transaction percentages, limited features
Traditional merchant account providers (Worldpay, Barclaycard, Handepay):
- Best for: High-volume businesses (£5,000+ monthly)
- Pros: Lower transaction rates, advanced features, better support
- Cons: Contracts required, monthly fees may apply
Compare UK card machine providers
Key Comparison Factors
1. Transaction fees:
- Calculate total costs at your expected monthly volume
- Compare percentage rates plus fixed per-transaction fees
- Ask about different rates for debit vs credit cards
2. Monthly fees:
- Some charge no monthly fees (slightly higher transaction rates)
- Others charge monthly fees with better transaction rates
- Calculate which structure saves money at your volumes
3. Contract terms:
- No contract (pay-as-you-go): Maximum flexibility, slightly higher costs
- 1-3 year contracts: Better rates but commitment required
- Check early termination fees before signing
4. Settlement times:
- Next-day settlement: Funds arrive 1 business day after transaction
- 2-7 days: Longer wait, more common for new or high-risk businesses
- Same-day available from some providers for established businesses
5. Terminal options:
- Countertop (fixed location)
- Portable (Wi-Fi within premises)
- Mobile (GPRS/4G anywhere with signal)
- Purchase vs rental options
Learn which card machine type suits your business
Understand complete card machine costs
How We Tranxact Helps with Provider Selection
We obtain quotes from multiple UK payment providers suitable for your business type and volumes, so you can compare actual rates rather than guessing. We explain contract terms, highlight hidden fees, and help you choose the provider offering the best value for your specific situation.
Our service is free – providers compensate us when we refer businesses, so you get independent advice at no cost.
Step 4: Submit Your Application
Application Process
Pay-as-you-go providers (SumUp, Square, Zettle):
- Download app and create account
- Provide basic business information
- Upload ID and business documents
- Agree to terms and conditions
- Approval typically instant to 24 hours
- Order terminal through app
- Terminal arrives in 2-3 days
- Activate and start processing
Traditional providers (full merchant account):
- Complete application form (online or via phone)
- Upload all required documentation
- Application reviewed by underwriting team
- May request additional information or clarification
- Approval decision: 24-48 hours (standard) or 3-10 days (high-risk)
- Sign contracts and agree to terms
- Terminal delivered by courier (3-5 days)
- Technical setup and activation
- Test transactions
- Go live and start processing
Underwriting Process
What underwriters assess:
- Business legitimacy: Proper registration, valid documentation
- Industry risk: Which sector you operate in
- Processing history: Previous merchant accounts, chargeback ratios
- Financial stability: Bank statements showing regular business activity
- Website compliance: Professional site with all required legal pages
- Director background: Credit history, no fraud history
Common reasons for decline:
- Incomplete documentation
- Website non-compliant or incomplete
- Previous undisclosed account terminations
- High-risk industry without disclosing it
- Poor credit history (serious adverse credit)
- Operating in sector provider doesn’t support
Application Success Tips
Maximize Your Approval Chances
- Complete everything first time: Missing documents delay approval by 5-10 days minimum
- Be transparent: Disclose previous issues upfront – hiding them causes instant rejection
- Professional website: Clean, functional site with all legal pages present and correct
- Clear business explanation: Underwriters must understand what you sell and how
- Realistic projections: Don’t inflate volume estimates – be honest
- Quality documentation: Clear scans, not blurry phone photos
- Consistent information: Details must match across all documents
Step 5: Terminal Setup and Activation
Terminal Delivery
- Pay-as-you-go: 2-3 days delivery after ordering
- Traditional providers: 3-5 days after approval
- Courier delivery with tracking
- Sign for delivery at business address
Activation Process
Pay-as-you-go terminals:
- Unbox terminal and charging accessories
- Charge terminal fully (usually 2-3 hours)
- Connect to Wi-Fi or pair via Bluetooth (follow app instructions)
- Terminal automatically activates when connected
- Run test transaction
- Ready to accept live payments
Traditional merchant account terminals:
- Unbox terminal and accessories
- Connect power and communications (landline, ethernet, or Wi-Fi)
- Terminal downloads configuration automatically
- Provider may call to verify setup
- Run test transactions
- Confirm settlements working correctly
- Go live
Initial Testing
Before going live, test:
- Contactless payment (under £100)
- Chip and PIN payment
- Refund processing
- Receipt printing (if applicable)
- End-of-day batch settlement (traditional accounts)
- Online payment gateway (if applicable)
Staff Training
Train all staff on:
- Processing standard transactions
- Handling declined cards
- Processing refunds
- Reprinting receipts
- What to do if terminal malfunctions
- Provider support contact information
Timeline: How Long Does It Take?
Standard Merchant Account Timeline
| Documentation preparation | 1-3 days |
| Application submission | 30 minutes |
| Underwriting/approval | 24-48 hours |
| Terminal delivery | 3-5 days |
| Setup and testing | 1-2 hours |
| Total time | 5-10 days |
High-Risk Merchant Account Timeline
| Documentation preparation | 2-5 days |
| Application submission | 1 hour |
| Underwriting/approval | 3-10 days |
| Terminal delivery | 3-5 days |
| Setup and testing | 2-4 hours |
| Total time | 10-20 days |
Costs of Getting a Merchant Account
One-Time Costs
- Setup fees: Often waived, particularly through referral partners like We Tranxact
- Terminal purchase: £29-£500 depending on type (or choose rental)
- Integration costs: £0-£500 if connecting to EPOS or accounting software
Ongoing Costs
- Transaction fees: Percentage of each sale plus fixed fee per transaction
- Monthly fees: £0-£100 depending on provider and package
- Terminal rental: £10-£35/month if renting instead of purchasing
- PCI compliance: £0-£200 annually (often included)
- Chargeback fees: £15-£30 per dispute
After Setup: Best Practices
First 30 Days
- Monitor transactions closely: Ensure everything processes correctly
- Check settlements: Verify funds arrive in your bank account as expected
- Track chargebacks: Address any disputes immediately
- Review reports: Familiarize yourself with reporting portal
- Staff feedback: Gather feedback from staff using terminals
Ongoing Management
- Maintain PCI compliance: Complete annual questionnaires
- Keep chargeback ratios low: Under 0.65% for standard accounts
- Update business information: Notify provider of address or bank account changes
- Review rates annually: Compare current rates with market offerings
- Monitor for fraud: Watch for suspicious transaction patterns
When to Review Your Merchant Account
- After 12 months: Negotiate better rates or shop around
- Volume increases significantly: Higher volumes should secure better rates
- Contract renewal approaching: Compare other providers before auto-renewal
- Service issues: Poor support or frequent problems warrant switching
- Business model changes: Different needs may require different provider
How to Get a Merchant Account – Frequently Asked Questions
Can I get a merchant account as a new business?
Yes, new businesses can get merchant accounts. Pay-as-you-go providers (SumUp, Square) accept brand new businesses immediately. Traditional providers prefer businesses trading 3-6+ months but some accept newer businesses with strong business plans and proper documentation.
Do I need a business bank account to get a merchant account?
Yes, you need a UK business bank account in your business name (sole trader name or company name). Personal accounts are not acceptable. Open your business bank account before applying for a merchant account.
How long does merchant account approval take?
Pay-as-you-go providers: Instant to 24 hours. Standard merchant accounts: 24-48 hours. High-risk merchant accounts: 3-10 days. Incomplete applications take significantly longer as providers request missing information.
What if I am declined for a merchant account?
One decline does not disqualify you from all providers. Different providers have different risk appetites. Understand why you were declined, address any issues, and apply to providers more suited to your business type. We can help identify suitable alternative providers.
Can I get a merchant account with bad credit?
Minor adverse credit usually does not prevent approval, though may result in higher fees or reserves. Serious adverse credit (CCJs, bankruptcy, IVAs) makes approval more difficult but not impossible. Some specialist high-risk providers work with businesses with credit issues.
Do I have to sign a long-term contract?
No. Pay-as-you-go providers require no contracts. Some traditional providers offer monthly rolling contracts. Others require 1-3 year terms. No-contract options offer flexibility but may cost slightly more. Choose based on your business stability and growth plans.
Can I have merchant accounts with multiple providers?
Yes, there is no restriction on using multiple providers. Some businesses use pay-as-you-go for mobile work and traditional accounts for fixed locations. However, you must disclose all merchant accounts when applying to avoid issues.
What happens if my application is incomplete?
Providers request missing documents, delaying approval by 5-10 days minimum. Multiple rounds of document requests can extend this to 3-4 weeks. Submit complete applications with all required documents to avoid delays.
How much does it cost to get a merchant account?
Setup fees are often waived, especially through referral partners. Terminal costs range from £29-£500 depending on type and whether you rent or purchase. Main ongoing costs are transaction fees (percentage-based) and potential monthly fees.
Can I switch merchant account providers easily?
Pay-as-you-go providers allow switching anytime. Traditional providers on contracts may charge early termination fees (£200-£1,000+). After contracts end, switching is straightforward. Always check exit clauses before signing any agreement.
Related Merchant Account Guides
- Standard Merchant Account Guide UK
- High-Risk Merchant Accounts UK
- High-Risk vs Standard Comparison
- Application Checklist
- Best Card Machines for Small Business
- How Much Does a Card Machine Cost
- Card Machine Provider Comparison
UK Payment Industry Resources
- UK Finance – Payment Standards
- Financial Conduct Authority – Payment Services
- Visa UK
- Mastercard UK
- PCI Security Standards Council
Get Your Merchant Account with Expert Guidance
We guide UK businesses through the entire merchant account application process, from determining which account type you need to comparing provider quotes and coordinating terminal delivery and activation.
