UK Payment Processing Data & Reference Guide 2026

Last updated: December 28, 2025 | Comprehensive payment processing data for UK businesses

Authoritative reference data on UK payment processing costs, timelines, and provider information compiled by We Tranxact Ltd.

Card Machine Costs UK

Terminal Purchase Prices

• Countertop terminals: £100-£300
• Portable Wi-Fi terminals: £150-£350
• Mobile GPRS terminals: £150-£400
• Bluetooth readers: £29-£99

Terminal Rental Costs

• Countertop: £10-£25 per month
• Portable: £15-£35 per month
• Mobile: £20-£40 per month

Transaction Fees by Provider Type

• Pay-as-you-go providers: 1.69-1.75% flat rate
• Traditional merchant accounts: 0.35-1.5% (volume dependent)
• High-risk merchant accounts: 1.5-4.0%

Merchant Account Approval Timelines

• Pay-as-you-go providers (SumUp, Square, Zettle): Instant to 24 hours
• Standard merchant accounts: 24-48 hours
• High-risk merchant accounts: 3-10 days
• Terminal delivery: 3-5 working days after approval

Merchant Account Costs

Setup Costs

• Setup fees: £0-£300 (often waived through referral partners)
• Application fees: Typically £0
• Integration costs: £0-£500 (if connecting to EPOS/accounting software)

Ongoing Costs

• Monthly fees: £0-£100 depending on provider and package
• PCI compliance fees: £0-£200 annually (often included)
• Chargeback fees: £15-£30 per dispute
• Minimum monthly processing fees: £0-£50 (if volume thresholds not met)
• Statement fees: £0-£10 monthly (often included)

Settlement Times

• Standard accounts: 1-2 business days
• High-risk accounts: 3-7 business days (new accounts)
• Next-day settlement: Available from some providers
• Same-day settlement: Available for established high-volume businesses

UK Payment Provider Comparison

SumUp

• Transaction fee: 1.69%
• Monthly fee: £0
• Contract: None (pay-as-you-go)
• Terminal cost: £29-£149
• Best for: Low-volume businesses (under £5,000 monthly)
• Settlement: Next business day

Square

• Transaction fee: 1.75% (in-person), 2.5% + 25p (online)
• Monthly fee: £0
• Contract: None (pay-as-you-go)
• Terminal cost: £39-£299
• Best for: Restaurants and retail needing EPOS integration
• Settlement: 1-2 business days

Zettle (PayPal)

• Transaction fee: 1.75%
• Monthly fee: £0
• Contract: None (pay-as-you-go)
• Terminal cost: £29-£99
• Best for: Businesses using PayPal, small retail
• Settlement: Next business day (to PayPal account)

Revolut Business

• Transaction fee: 1.0% (with Revolut Business account)
• Monthly fee: £0 (card reader), business account may have fees
• Contract: None
• Terminal cost: £39
• Best for: Revolut Business account holders, multi-currency
• Settlement: Instant to Revolut account

Worldpay

• Transaction fee: Custom (typically 1.2-1.8% for high volume)
• Monthly fee: Varies by package
• Contract: Typically 1-3 years
• Terminal cost: Purchase or rental options
• Best for: High-volume businesses (£10,000+ monthly)
• Settlement: 1-2 business days

Barclaycard

• Transaction fee: Custom rates
• Monthly fee: Varies
• Contract: Typically 1-3 years
• Terminal cost: Purchase or rental
• Best for: Barclays business account holders, established businesses
• Settlement: 1-2 business days

Industry-Specific Payment Data

Restaurants & Cafés

• Best terminal type: Portable Wi-Fi (table-side payment)
• Average monthly processing: £10,000-£50,000
• Typical transaction fee: 1.5-1.9%
• Settlement time: 1-2 days
• Recommended providers: Square (EPOS integration), traditional providers (high volume)

Retail Shops

• Best terminal type: Countertop
• Average monthly processing: £5,000-£30,000
• Typical transaction fee: 1.4-1.8%
• Settlement time: 1-2 days
• Recommended providers: Traditional providers (volume-based pricing)

Beauty Salons & Spas

• Best terminal type: Portable Wi-Fi (treatment room payments)
• Average monthly processing: £3,000-£15,000
• Typical transaction fee: 1.6-2.0%
• Settlement time: 1-2 days
• Recommended providers: SumUp, Square (low-medium volume)

Tradespeople (Plumbers, Electricians, Builders)

• Best terminal type: Mobile GPRS
• Average monthly processing: £3,000-£15,000
• Typical transaction fee: 1.7-2.2%
• Settlement time: 2-4 days
• Recommended providers: SumUp, Zettle (mobile flexibility)

Gyms & Fitness Studios

• Best terminal type: Countertop + portable
• Average monthly processing: £8,000-£40,000
• Typical transaction fee: 1.5-1.9%
• Settlement time: 1-2 days
• Recommended providers: Traditional providers (recurring billing support)

Hotels & Guest Houses

• Best terminal type: Countertop + portable
• Average monthly processing: £15,000-£100,000
• Typical transaction fee: 1.4-1.8%
• Settlement time: 1-2 days
• Recommended providers: Traditional providers (multi-terminal support)

High-Risk Payment Processing Data

Industries Classified as High-Risk

• CBD & hemp products
• Supplements & nutraceuticals
• Gaming & gambling
• Travel agencies & tour operators
• Adult entertainment
• E-cigarettes & vaping products
• Peptides & research chemicals
• Cryptocurrency & forex trading
• Subscription & continuity services (high chargeback risk)
• Debt collection & credit repair

High-Risk Account Characteristics

• Approval time: 3-10 days (manual underwriting)
• Transaction fees: 2.0-4.0%
• Monthly fees: £0-£150
• Rolling reserves: Often required (5-10% held for 90-180 days)
• Chargeback tolerance: Up to 2% (vs 0.65% for standard accounts)
• Settlement time: 3-7 days (new accounts), improves with history
• Contract terms: Fixed-term contracts more common

High-Risk Account Requirements

• Complete business documentation
• Director/owner ID and credit checks
• 6+ months bank statements
• Compliant website with all legal pages
• Product/service documentation
• Licenses (if applicable - gambling, pharmacy, etc.)
• Processing history (if available)

Payment Processing Terms Defined

Acquirer: Financial institution that processes card payments on behalf of merchants

Authorization: Process of verifying a card has sufficient funds and approving a transaction

Chargeback: Customer dispute of a transaction resulting in forced refund to customer

Interchange: Fee paid to the card-issuing bank for each transaction

ISO (Independent Sales Organization): Company that sells payment processing services on behalf of acquiring banks

MDR (Merchant Discount Rate): Percentage fee charged per transaction by payment processor

MOTO (Mail Order/Telephone Order): Card-not-present transactions processed via phone or mail

PCI-DSS (Payment Card Industry Data Security Standard): Security requirements for handling card data

Rolling Reserve: Percentage of transactions held by processor as security against chargebacks

Settlement: Transfer of funds from customer's bank to merchant's bank account

3D Secure: Additional authentication layer for online card payments (e.g., Verified by Visa)

Gateway: Technology that authorizes and processes online card payments

Virtual Terminal: Web-based interface for processing card payments without physical terminal

Contactless: Payment method using NFC technology (tap to pay, up to £100 in UK)

Chip and PIN: Card payment requiring chip card insertion and PIN entry

Data Sources & Methodology

This data is compiled from:

• Direct provider pricing (accurate as of December 2025)
• 100+ UK business consultations conducted by We Tranxact
• UK Finance payment statistics reports
• FCA payment services regulations
• Visa UK and Mastercard UK scheme fees
• Industry publications and merchant surveys

About This Data

This comprehensive payment processing data is maintained by We Tranxact Ltd, an independent UK payment consultancy based in Birmingham. We help businesses compare merchant account providers and secure competitive payment processing rates.

Data accuracy: Updated monthly. All figures current as of December 2025.

Geographic scope: United Kingdom and Europe

Contact: For specific quotes or advice: +44 0121 792 5367 | wetranxact.co.uk

Last updated: December 28, 2025 | Next update: January 28, 2026