How to accept card payments as a small business

Whether you run a fully online business, a traditional brick and mortar location or something in between, accepting credit card payments can make it easier to attract customers and manage payments.

There are some costs associated with taking card payments for small businesses, and getting set up for small business credit card processing does take a bit of organisation - but being able to offer additional ways for customers to pay can make it worthwhile. This guide walks through how to accept credit card payments for small businesses so you can decide if it’s a good move for your UK enterprise.

Alternatively, we'll also cover how accepting card payments in currencies can be a breeze. With Wise Business you can send a payment link, invoice, or QR code, and let Wise handle the rest, freeing you from complex integrations.

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How important is it to take credit card payments for small businesses?

Being able to accept customer card payments, on and offline, is crucial to UK businesses. As people become more and more reliant on cards rather than cash, and as more and more trade moves online, accepting debit and credit card payments can help your company flourish.

So what’s the size of the prize? UK Finance card payment data shows that in February 2025 alone there were 1.92 billion debit and credit card transactions in the UK, amounting to a total spend of £65.7 billion¹.

It’s pretty easy to see why small business card payments - even where you pay a processing fee - are a good choice for many companies. If you’re looking to unlock the next stage of your business’ growth, read on for our guide to help you navigate the process of accepting credit card payments for small businesses.

How does accepting credit card payments work?

Setting up the process of accepting credit card payments will take a bit of effort, but there are plenty of companies out there which help small business customers process card payments for a fee.

We’ll work through a step by step guide on how to take card payments for a small business in a moment - but you’ll usually find you need a payment service provider (PSP) - a company which supports the back end processing of card payments, and a payment gateway for digital payments. This is often provided by your PSP if you select an end to end service. You may also need physical or digital infrastructure to accept card payments - a point of sale (POS) terminal for in person sales, or checkout integrations for ecommerce payments, for example.

Types of credit card payments

There are several different types of credit card payments, which can have their own processing methods. When you start the process of arranging to take card payments, you’ll need to decide which card payment methods you’ll accept.

For example, if you’re taking digital payments online you may choose to accept manually keyed card payments or card payments which are initiated through digital wallets like Apple Pay or Google Pay. Wallets can also be used for in person payments - and you might also add in options for customers to make chip and PIN or contactless card payments.

Which payment methods you accept will depend on your customers’ preferences and habits - weigh up the options based on your business type to help decide which options to offer.

How to accept credit card payments as a business - step-by-step

Once you’ve decided to accept card payments you’ll need to take several steps to be able to securely process transactions. Some businesses decide to use one end to end provider to support all of the required processes, while others may buy services from different providers, and manage some of the process themselves. Which is best for you will depend on the types of payment, size of your company and your technical expertise.

To give a flavour, we’ll work through a step by step guide on how to accept credit card payments as a business.

Choose a payment services provider

The most common way to take customer card payments as a UK business is to choose a payment services provider - usually known as a PSP. Popular PSPs like Stripe² offer a comprehensive range of options to allow you to take payments in different currencies, using cards and local payment methods.

Different PSPs offer their own suites of services, so you’ll need to compare a couple to decide which works best for your business. You’ll need to cover transaction costs which are usually a percentage value of each card transaction processed - and different providers may also have one off or monthly costs depending on the services and hardware you need. We’ll take a look at some common fees to think about, a little later.

Set up a merchant account

To receive customer card payments, you’ll need to have a merchant account. This is an account which is linked to the PSP or payment gateway, and which is used to receive funds once card payments have been processed. If you’re using a PSP like Stripe, you can open a merchant account with the provider you’ve picked - or if you’re planning to buy services from a range of different providers, you might want to shop around and use a different merchant account provider.

Once your card payment system is all up and running, you’ll be able to receive funds to your merchant account and then withdraw to your business bank account either automatically or manually.

Integrate a payment gateway

The next link in the chain is to set up a payment gateway - the service which will manage moving the customer’s money from their card account to your merchant account. Payment gateways are an essential part of the process of taking card payments online.

If you’re using a comprehensive PSP the payment gateway will be provided by the PSP as part of the service. Or, you can choose a different payment gateway which integrates with the rest of your systems

UK payment gateway providers include PayPal³ which is super popular and commonly used for online businesses.

Sort out POS equipment

Your final task is to choose the point of sale (POS) equipment that you’ll use if you’re taking physical card payments in person. While a large store might have a bulky checkout, you won’t need quite so much hardware to manage card payments only. In fact, different POS providers have neat solutions which are portable and essay to use on the move.

For example, Square⁴ - a popular UK PSP - has POS equipment that’s optimised for different business types, such as restaurants which need digital order systems as well as ways to take card payments. It’s common to find you can even manage customer card payments with nothing more than your smartphone, using POS tools which can be downloaded to accept contactless card transactions.

Different business types will benefit from different POS solutions, but PSPs and POS providers can offer individual guidance for companies which need help choosing the right tools for their specific needs.

Fees and costs to accept credit card payments

The fees related to accepting credit card payments in the UK can vary a lot, depending on the provider you select and the specific payment types you need to accept.

Some providers operate on a pay as you go model, where there are no monthly fees, and you pay only a transaction fee for each payment that’s processed. Others have packages which may have monthly fees, and which offer extra perks.

In some cases, the costs of processing an online payment is different to an in person payment - and in pretty much all cases, taking payments from an international card costs more than a domestic UK transaction.

Additional costs can include fees for pay outs, currency conversion, disputes and chargebacks.

It’s important to look carefully at the fee schedule of any payment provider you select, because any unexpected costs could eat into your profit margins significantly. We’ve summarised the card processing costs for two of major UK payment service providers - Stripe and Square - below to give an idea of the per transaction costs you’re likely to need to cover:

Service	Stripe UK fee⁵	Square UK fee⁴
Monthly fee	No fee for standard plan Custom plans available	£0 - £29 for off the peg plans Custom plans available
Accept payments from local credit or debit cards	1.5% + £0.20 for standard UK cards 1.9% + £0.20 for premium UK cards	Online: 1.4% + £0.25 In person: 1.75%
Accept payments from international credit or debit cards	2.5% + £0.20 for cards issued in the EEA 3.25% + £0.20 for cards issued anywhere else 2% fee applies if currency conversion is needed	2.5% + £0.25

*Details correct at time of research - 05/06/2025

Read more about Stripe vs Square on our complete comparison

Best practices for small businesses accepting credit card payments

Being able to take customer debit or credit card payments can make it easier to get paid by customers at home and abroad. Before you start to transact, take some time to ensure you’re following best practice recommendations - here are a few to think about:

Compliance considerations - when taking customer card payments you’re handling sensitive financial data. To ensure payments are secure, all businesses taking card payments need to follow Payment Card Industry Data Security Standard (PCI DSS) regulations. Your PSP or payment gateway provider will be able to advise you on the measures they have in place to ensure you are compliant - but it’s a good idea to learn about the rules so you can be confident you’re keeping your customer’s data safe.

Security measures - it’s important to keep up to date with the security features used by your PSP or payment gateway. You’re responsible for protecting your customers and their money, which will require you to prevent unauthorised use of your POS equipment, and to regularly update your payment software to ensure you have the latest and best versions available.

Customer experience - customers often prefer making card payments compared to cash as it’s more convenient. Once you start to take customer card payments you might want to get feedback about how your processes are working for your specific customer group. A slow or confusing online payment system can be a huge issue for a business, resulting in abandoned carts and customers failing to complete transactions.

Integrations with financial management - finally, consider how you knit together your card payment system with your other business financial management tools. You’ll need to be able to reconcile transactions and analyse your business performance, which is far easier if you have financial systems which integrate neatly and can automatically update and sync.

Simplify online payments with Wise Business

Complex payment gateway integrations are in the past, you can start accepting credit and debit card payments in currencies in minutes with Wise, no code required.

Just send a payment link, invoice, or QR code to your customers, and let Wise handle the rest, ensuring timely payments and improving your cash flow. This streamlined approach wipes out the technical challenges and time-consuming setup associated with traditional payment gateways, allowing you to focus on what truly matters: growing your business.

Say goodbye to high and complex payment processing fees. Wise Business offers a transparent, low-cost solution with just 1% fee for domestic cards and 2.9% for international and business cards.

And once the payment is done you can manage multiple currencies effortlessly, all in one account. Enhance your customer relationships and support your business's global expansion with a payment solution that prioritises simplicity and efficiency.

Get started with Wise Business 🚀

FAQs - accepting credit card payments for small business

What do I need to start accepting credit card payments?

To accept customer card payments you’ll need to work with a payment services provider (PSP), or in some cases a standalone payment gateway service. If you're taking in person payments you may also need hardware to allow you to process physical card payments. Providers like PayPal, Stripe and Square are popular among UK businesses and offer a comprehensive suite of payment services for both on and offline card transactions.

How long does it take to receive funds from credit card transactions?

When you take a card payment from a customer, the funds will be received into your merchant account. Timescales vary a lot, depending on whether the card is locally issued or international. Generally you can expect local payments to arrive pretty quickly, but international cards may take 1 - 3 days to arrive in your account.

How do I handle chargebacks?

A chargeback occurs when a customer disputes a card payment with their bank. Generally your PSP will help you to handle chargebacks, but as a business owner you may need to provide information and evidence to help the matter to be resolved. Depending on the type of issue you might also want to reach out to the customer to understand first hand the problem and offer to help - building brand loyalty, and hopefully coming to an amicable conclusion.

How can I integrate credit card payments with my accounting software?

Cloud accounting software can generally sync with different types of business accounts, allowing you to automatically update all your financial information more conveniently. Look out for PSPs and payment gateways which have smart integrations with your preferred accounting software to make the process as simple as possible.

Taking credit card payments for your small business can really help boost your appeal, making it easy for customers to pay for your goods and services from around the world. There are many providers in the UK which help business owners accept customer card transactions with minimum fuss, such as Stripe and Square. This guide is here to help you to choose the service which works best for your business, to find the best blend of cost and convenience for both you and your customers.

Sources used in this article:

1. UK Finance - card payment data
2. Stripe
3. PayPal UK merchant services
4. Square pricing
5. Stripe pricing

Sources last checked 03/06/2025