What is a Standard Merchant Account?

Who Can Get a Standard Merchant Account?

Standard merchant accounts are designed for established, low-risk businesses in mainstream industries. These accounts offer the most competitive rates and fastest approval times.

Businesses That Qualify for Standard Merchant Accounts

• Retail shops: Clothing stores, gift shops, electronics retailers, bookshops, hardware stores
• Restaurants and cafés: Table service restaurants, quick service restaurants, coffee shops, takeaways
• Hospitality: Hotels, guest houses, bed and breakfasts, pubs
• Professional services: Accountants, solicitors, consultants, financial advisors
• Beauty and wellness: Hair salons, barbers, beauty salons, spas, nail bars
• Fitness businesses: Gyms, fitness studios, personal trainers, yoga studios
• Healthcare: Dentists, opticians, private clinics, physiotherapists
• Automotive: Garages, car washes, auto repair shops, MOT centers
• Home services: Plumbers, electricians, builders, landscapers
• Entertainment: Cinemas, theatres, leisure centers, activity centers

Business Characteristics That Support Standard Account Approval

• Established trading history: Typically 6+ months in business with consistent revenue
• Low chargeback risk: Minimal disputes or refund issues
• Clear business model: Straightforward products or services with immediate delivery
• UK-based operations: Registered UK business with UK bank account
• Proper documentation: Complete business registration, valid IDs, compliant website
• No previous account terminations: Clean payment processing history

Standard vs High-Risk Merchant Accounts

Understanding the difference helps you determine which account type you need:

Feature	Standard Account	High-Risk Account
Approval Time	24-48 hours (automated)	3-10 days (manual review)
Transaction Fees	Lower rates	Higher rates
Rolling Reserve	Rarely required	Often required
Setup Fees	Often waived	Varies by provider
Contract Terms	Monthly rolling common	Fixed-term common
Chargeback Tolerance	Under 0.65%	Up to 2%

Read our complete comparison of high-risk vs standard merchant accounts

Benefits of Standard Merchant Accounts

1. Competitive Transaction Fees

Standard merchant accounts offer the most competitive transaction rates because low-risk businesses pose less risk to payment providers. Lower fees mean you keep more of each sale.

2. Fast Approval Process

Most standard merchant account applications are approved within 24-48 hours through automated underwriting. Once approved, terminals arrive within 3-5 working days and can be activated immediately.

3. No Rolling Reserves

Standard accounts rarely require rolling reserves (holding back a percentage of your transactions). You receive your full settlement amount without funds being held.

4. Flexible Contract Terms

Many providers offer monthly rolling contracts for standard accounts, giving you the flexibility to change providers if you find better rates or service elsewhere.

5. Multiple Payment Methods

Accept contactless payments (up to £100), chip and PIN, magstripe, digital wallets (Apple Pay, Google Pay), and online payments through a payment gateway.

6. Quick Settlement Times

Standard accounts typically settle funds within 1-2 business days. Some providers even offer next-day or same-day settlement for established businesses.

7. Integration Options

Easily integrate with EPOS systems, accounting software (Xero, QuickBooks), and booking systems to streamline your business operations.

How to Get a Standard Merchant Account

Step 1: Ensure You Qualify

Verify you operate in a standard-risk industry and meet basic requirements:

• UK-registered business (limited company or sole trader)
• UK business bank account
• Trading for 6+ months (some providers accept newer businesses)
• Professional website with terms, privacy policy, and clear product/service information
• No previous merchant account terminations

Step 2: Prepare Documentation

Standard merchant account applications require:

• Company registration documents (Companies House certificate)
• Director/owner ID (passport or driving license)
• Proof of address (within 3 months)
• UK business bank account details
• Business bank statements (3-6 months)
• Processing history (if you currently accept cards elsewhere)

Step 3: Choose Your Terminal Type

Decide which card machine type suits your business:

• Countertop: Fixed checkout positions (shops, reception desks)
• Portable: Movement within premises (restaurants, hotels)
• Mobile: Work at customer locations (tradespeople, mobile services)

Read our guide to choosing the best card machine for your business

Step 4: Compare Provider Offers

Don’t accept the first offer you receive. Compare multiple providers on:

• Transaction fee percentages
• Monthly fees (or no monthly fee options)
• Terminal costs (rental vs purchase)
• Contract length and exit clauses
• Settlement times
• Customer support quality

We Tranxact helps: We obtain quotes from multiple UK payment providers so you can compare actual rates and choose the best fit for your business.

Step 5: Submit Application

Once you’ve chosen a provider, submit your application with all required documentation. Complete applications with all documents provided are approved fastest.

Step 6: Receive and Activate Terminal

After approval, your card machine is delivered by courier within 3-5 working days. Activation is typically instant – you can start taking payments immediately upon receipt.

Standard Merchant Account Costs

Understanding costs helps you budget and compare providers effectively:

Transaction Fees

What you pay: A percentage of each transaction plus a fixed fee per transaction.

What affects rates: Your industry, monthly volume, and average transaction value.

How to get better rates: Higher monthly volumes secure lower percentages. Businesses processing £50,000+ monthly get preferential rates.

Monthly Fees

What you pay: Fixed monthly charge for gateway access and services.

Options: Some providers charge no monthly fees (slightly higher transaction rates), others charge small monthly fees with better transaction rates.

Best approach: Calculate total monthly costs based on your expected transaction volume to see which structure saves money.

Terminal Costs

Purchase: Buy the terminal outright (one-time cost, no rental fees)

Rental: Pay monthly rental (lower upfront, provider replaces faulty terminals)

Lease-to-own: Pay monthly installments until you own the terminal

Setup Fees

Many providers waive setup fees for standard accounts, especially through referral partners like We Tranxact. Always ask if setup fees can be waived.

Read our complete guide to card machine costs

Common Standard Merchant Account Mistakes

1. Accepting the First Quote Without Comparison

Payment processing is competitive. Getting multiple quotes ensures you’re not overpaying. Even small differences in transaction rates compound significantly over time.

2. Ignoring Contract Terms

Early termination fees, minimum processing requirements, and automatic price increases can catch you off guard. Read contracts thoroughly before signing.

3. Choosing Based on Upfront Costs Only

A “free” terminal with high transaction fees costs more over time than buying a terminal with lower ongoing fees. Calculate 12-month total costs.

4. Not Considering Growth

Choose a provider that can scale with you. If you plan to grow significantly, ensure your provider can handle higher volumes and offers volume-based discounts.

5. Overlooking Settlement Times

Cash flow matters. If you need faster access to funds, prioritize providers offering next-day or same-day settlement.

How We Tranxact Helps You Get a Standard Merchant Account

Standard Merchant Account Requirements

Business Requirements

• UK-registered business (Companies House registration for limited companies)
• Sole traders need UTR number and proof of trading
• Trading for at least 3-6 months (some providers accept newer businesses)
• Legitimate business activity in low-risk industry
• No undisclosed account terminations or fraud history

Banking Requirements

• UK business bank account in business name
• Business account, not personal account
• 3-6 months of bank statements showing regular business activity
• Positive account status (not overdrawn or in arrears)

Website Requirements (for online businesses)

• Live, functional website
• Clear product or service descriptions with pricing
• Terms and Conditions page
• Privacy Policy (GDPR compliant)
• Refund and Returns policy
• Contact information (address, phone, email)
• SSL certificate (https://, not http://)

Director/Owner Requirements

• Valid ID (passport or UK driving license)
• Proof of address within 3 months
• National Insurance number
• Clean credit history (significant adverse credit may affect approval)
• No history of fraud or financial crime

Standard Merchant Account – Frequently Asked Questions

How long does it take to get a standard merchant account?

Most standard merchant account applications are approved within 24-48 hours through automated underwriting. Once approved, card machines are delivered within 3-5 working days and can be activated immediately. Total timeline from application to accepting payments is typically 5-7 days.

Can I get a standard merchant account if I’m a sole trader?

Yes, sole traders can get standard merchant accounts. You’ll need your UTR number, proof of trading, business bank account, and personal ID documents. Some providers prefer limited companies but many work with sole traders in low-risk industries.

Do I need to be trading for a minimum period?

Most providers prefer businesses trading for 6+ months, though some accept newer businesses with strong business plans and proper documentation. Brand new businesses (under 3 months) may face higher rates or additional requirements.

What if I’ve been declined by one provider?

One decline doesn’t disqualify you from all providers. Different providers have different risk appetites and criteria. We can help you understand why you were declined and connect you with providers more likely to approve your business.

Can I have multiple merchant accounts?

Yes, businesses can have multiple merchant accounts for different purposes (online and in-person, multiple locations, different business entities). However, you must disclose all accounts when applying to avoid issues.

What happens if my chargeback ratio increases?

Standard accounts require chargebacks to stay under 0.65%. If your ratio increases, you may receive warnings, face higher fees, or need to switch to a high-risk account. Preventing chargebacks through good customer service and clear policies is essential.

Can I switch providers if I find better rates?

Yes, though contract terms vary. Monthly rolling contracts allow easy switching. Fixed-term contracts may have early termination fees. Always check exit clauses before signing and review your rates annually to ensure you’re getting competitive pricing.

Do standard merchant accounts have transaction limits?

New accounts may have initial processing limits that increase over time. Established businesses typically have no limits or very high limits. If you process large single transactions regularly, discuss this upfront with your provider.

Can I accept payments online and in-person with one account?

Yes, most standard merchant accounts support both card-present (physical terminal) and card-not-present (online gateway) transactions. You can have one account handling both channels with the same rates.

What support do I get after setup?

Support varies by provider. Look for UK-based support teams, phone and email support, online help resources, and clear escalation procedures. We ensure you understand support options before choosing a provider.

When You Might Need a High-Risk Account Instead

Even if you want a standard account, some factors may require a high-risk account:

• Industry classification: Gaming, adult, CBD, supplements, travel, subscriptions
• High chargeback history: Dispute ratio above 1%
• International sales focus: Majority of sales to high-risk countries
• Large transaction values: Regularly processing transactions over £1,000
• Future delivery model: Taking payment months before delivering goods/services
• Previous account terminations: History of merchant accounts being closed

If any of these apply, you’ll need a high-risk merchant account. Read our guide to high-risk merchant accounts

Related Merchant Account Guides

• High-Risk vs Standard Merchant Accounts Comparison
• Best Card Machines for Small Business UK
• How Much Does a Card Machine Cost UK
• Merchant Accounts UK
• Ecommerce Payment Gateways

UK Payment Industry Resources

• UK Finance – Payment Standards
• Financial Conduct Authority – Payment Services
• Visa UK
• Mastercard UK
• PCI Security Standards Council

Get Your Standard Merchant Account

We help UK businesses in low-risk industries access standard merchant accounts with competitive rates, fast approval, and reliable service from trusted payment providers.