How to Accept Payments Online in the UK - 2025 Guide

It’s increasingly important for UK businesses to be able to process payments online, to be able to connect with the biggest possible pool of customers globally. By offering online payment methods you allow more customers to buy from you, boosting sales and increasing your brand awareness.

If you’re new to online payment processing, the systems involved can seem confusing - this guide is here to help. We’ll explore how to set up online payments for your business, and what it’s likely to cost you.

Selling to customers overseas? Accept customer card payments in 18+ major currencies with ease, with Wise Business. Get paid to Wise in the currency your customer prefers, and exchange when you’re ready to with the mid-market rate, and low, transparent fees.

💡 Learn more about Wise Business

How do online payments work?

Most online payments involve credit or debit cards, although you may also offer alternative payment methods. If you’re setting up your first online payment system, the process involved in payment processing can feel complex and confusing. To help unpick how online payment processing works let's look at how a card payment is managed.

There are several different parties involved in any single card payment - and once you understand the process flow and the role each party plays, it’s much easier to visualise what’s happening.

The parties involved in the process to accept online card payments are:

• The card holder - your customer
• The merchant - you, acting on behalf of your business
• The acquirer - a bank which routes the payment through the card network (like Visa or Mastercard for example)
• The issuing bank - the bank which issued the card to the customer

Depending on the way you set up your payment system you may also need to select a payment processor which works alongside the acquirer, and a payment gateway, which helps keep customer card details secure. Many third party providers like Stripe or Square offer an end to end service which covers all of these roles in one package so you don’t need to establish relationships with different services.

When the customer pays with a card, the payment gateway encrypts the card details for security and then passes them to the acquirer and on to the network. The network passes the transaction request to the issuing bank, which then confirms or denies the payment. All of this happens almost instantly, with the card payment acceptance being relayed back down to line to you so you can confirm the payment has been successful.

Read more: A guide to merchant payment services in the UK.

Why is it so important to accept online payments?

When you accept online payments you’ll usually take a customer card payment, although other payment methods are also sometimes available which we’ll look at later. Being able to offer different, convenient ways to pay can mean it’s easier for your customers to spend with you - this results in fewer abandoned carts and a better customer service experience.

Being able to take online payments can give you a competitive edge over other businesses - and the size of the prize is pretty staggering. Card payment data from UK Finance shows that in February 2025 alone there were 1.92 billion debit and credit card transactions in the UK, made by local and international customers, worth a whopping £65.7 billion¹. In addition to card options for online payments you might also take bank transfers and payments through ewallets digitally - making the total possible sales number even higher.

Read more: How to take credit card payments on your website.

Process payments online - step by step

Let’s take a look at a step by step guide to how online payment processing works. In this case we’ll assume it’s a customer buying something from an ecommerce site, although you may also take payments online using an invoice with a digital payment link or a QR code for example.

1. Customer initiates the transaction by heading to the website checkout page

Once they’ve selected the items to buy, the customer navigates to the checkout where they can see the different payment methods, and check their final bill.

1. Customer selects their preferred payment method and enters the details requested

The customer taps the payment method they want to use - such as a credit or debit card, ewallet, PayPal or bank transfer - and follows the prompts to enter the card, bank or account information needed to process the payment.

1. Payment gateway encrypts the payment details and sends them to the acquirer

The payment gateway encrypts the information the customer has entered to prevent it being stolen or misused, and sends this on to the acquirer or payment processor.

1. Acquirer passes the payment request to the customer’s bank or card issuer

The acquirer or payment processor will check the information looks correct and pass it on to the bank or the card issuer.

1. The bank or card issuer accepts the payment request

The bank or card issuer now has to check the payment can be made - with a debit card it will check there’s enough in the account, or with a credit card, it’ll check there’s enough left within the credit limit, for example. Assuming the payment is possible, the bank or card issuer will communicate this acceptance back down the line to the merchant.

1. The payment is settled and received into the merchants account

Once the payment is accepted it will be deposited into the merchant's bank account or merchant account with the payment processor. The merchant can then withdraw it to their business account if they need to.

Types of online payments methods

There are a few types of payment methods available for online transactions, and their popularity can vary across different countries. Common online payment methods include:

• Credit and debit cards
• Ewallets like Apple Pay and Google Pay
• Bank transfers
• Standalone providers like PayPal
• Buy Now, Pay Later services

Fees and costs involved in online payments

Businesses accepting payments online need to weigh up the costs involved in accepting different payment methods, and also the fees charged by different payment processors.

Some of the common fees are set out below, taking Wise and Stripe as examples to illustrate the kind of costs you might run into. Different services all have their own fees, so do compare a few before you choose.

Read more: Payment processing fees guide for the UK.

Payment type	Stripe fee²	Wise fee
Accept domestic UK card payment	1.5% + £0.20 for standard UK cards 1.9% + £0.20 for premium UK cards	1%
Accept international card payment	2.5% + £0.20 for European Economic Area cards 3.25% + £0.20 for international cards + 2% if currency conversion is required	2.9% Currency conversion available using themid market rate and low fees which vary by currency
Accept business card payment	Not specified	2.9%
Accept Buy Now, Pay Later payment	From 4.99% + £0.35	Not available
Accept bank transfer	1% for Bacs Direct Debit Minimum fee of £0.20 With a £4 cap	No fee to receive payments using local accounts information Small fees apply if you receive SWIFT payments which vary by currency or Wise USD

*Details correct at time of research - 29 June 2025

How to process global online payments?

As we’ve seen, there is often a higher fee to take a card payment from an international card. This fee might vary depending on where the card was issued. Plus, if you need currency conversion, additional charges might apply, which can mean you get less in your account in the end than you expected.

Wise Business can help with low cost payment acceptance across card payments, bank deposits and payments using QR codes and links.

Read our complete guide on How to accept payments online with Wise.

You can take customer card payments in 18+ major currencies with ease, and receive the payment in the currency the customer pays in. This means you’re not forced into converting your foreign currency payments back to GBP instantly if you don’t want to. You can hold your balance in the foreign currency and then exchange when you’re ready to with the mid-market rate, and low, transparent fees.

Wise also offers local and SWIFT account details which you can use to accept payments from your customer’s bank. It’s free to receive a payment using local account information and there are small fees for incoming SWIFT transfers, but again this allows you to receive the money in the original currency without conversion, and then switch back to GBP when you choose to.

Best practices for processing payments online

Let’s finish up with a few best practice tips for accepting online payments:

• Make sure your customer interface is user friendly and fast to navigate - complexity can result in abandoned carts
• Offer a broad range of payment methods to connect to the biggest pool of customers possible
• Select a payment processor and other services which are reliable and trusted, and which have good reputations for customer service
• Get familiar with the regulations related to online payments, such as PCI DSS - and pick providers who adhere to all UK and international guidelines
• Review the fees of your preferred providers carefully before you sign up, so you know what to expect

Simplify online payments with Wise Business

Complex payment gateway integrations are in the past, you can start accepting credit and 18+ 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 - process payments online

What is a payment gateway, and why is it important?

A payment gateway can securely capture and encrypt the customer’s payment information, like their credit card number, to pass on to the payment processor. This allows you to accept card payments while remaining compliant with relevant rules and PCI DSS regulations.

What is a payment processor, and how does it differ from a payment gateway?

The payment processor is the next step in the chain from the payment gateway. The gateway passes the customer’s payment information to the processor, which then communicates with the bank or card issuer to check if the payment can be authorised.

What are the common methods for accepting online payments?

Common online payment methods include:

• Credit and debit cards
• Ewallets like Apple Pay and Google Pay
• Bank transfers
• Standalone providers like PayPal
• Buy Now, Pay Later services

How can I ensure the security of online payment processing?

Only use providers which are fully compliant and which have security built in as standard. Major payment processors explain their security measures clearly as part of their marketing, so you can check you are comfortable with the way the provider works.

Can I set up recurring payments for subscriptions or memberships?

Yes. You can set up recurring payments for subscriptions or memberships with most major payment processing providers. Fees may vary for this service, so examine your options carefully before you choose the right provider for your UK business.

---

Taking customer online payments is a great way to connect with more customers and grow your business. Use this guide to get some ideas about how to set up your online payment systems, and remember to take a look at Wise Business to get paid in foreign currencies conveniently and accept customer card payments in 18+ major currencies with ease.

Sources used in this article:

1. UK Finance - card payment data
2. Stripe pricing

Sources last checked on 29/06/2025