How to take card payments without a merchant account

Not all businesses are the same, and not every payment solution will be suitable for every business model. But every business needs to make sure it can meet customer expectations, which means accepting the payment methods they prefer to use.

Debit and credit cards are the most popular method of payments in the UK, with over £1 trillion of them made in 2024.¹

To accept card payments, many UK businesses use a merchant account held with a bank or a payment processing company. But is it possible to do it without?

Read on to find out how to accept card payments online without a merchant account. We’ll cover everything your business needs to know, including alternative methods to get paid by card.

This includes Wise Business, which lets you accept card payments online in currencies, without the need for a payment gateway solution.

💡 Learn more about Wise Business

What is a merchant account and how does it work?

A merchant account is a bank account used for the sole purpose of holding money from customer transactions, before it is deposited in your company’s main business bank account.

Here’s a quick overview of the process of accepting a card payment into your merchant account:

1. The customer initiates the card transaction, either by paying in person or on your website.
2. The payment is sent to your payment processor.
3. It contacts the bank that issued the card for payment authorisation - this happens via the card network (i.e. Visa, Mastercard or American Express).
4. Once the payment is approved, the confirmation goes all the way back down the line to you, the merchant.
5. A transfer of funds is authorised, and the money deposited into your merchant account.
6. You can then move the funds to your main business bank account, or set up an automatic process.

Merchant account vs business account: what is the difference?

A merchant account has just one purpose - receiving and holding funds from customer card payments. You’ll only use this for processing card payments.

Business accounts are quite different, as they can be used for outgoing payments (including Direct Debits and Standing Orders) as well as receiving funds. You’ll also get a debit card for spending with a standard business account, which isn’t the case for a merchant account.

Business bank accounts are used for the everyday running of your business, including paying bills and managing expenses.

Pros and cons of using a merchant account

Before you decide whether or not to use a merchant account to accept card payments, it’s worth weighing up the pros and cons:

Pros	Cons
Can be cheaper if you process large volumes of credit card payments	Lots of fees, including account, setup and transaction charges
Increased sales and enhanced customer experience - as you can accept card payments easily	It can be difficult to get a merchant account - which may involve a lengthy vetting process
Safe and secure, with sensitive data protected and anti-fraud processes followed	Process can be complicated, with a chance of technical issues
Global reach - many merchant accounts support multi-currency and international payments	Delays in receiving the funds into your main business account

How to accept payments online without a merchant account?

We’ve looked at merchant accounts, including how they work and the pros and cons. But now it’s time to look at alternative ways to accept payments online, without needing this kind of account.

Your main options include:

• Link payments - where you simply send customers a link or QR code to make a card payment
• E-commerce checkout with a payment service provider (PSP) - this involves integrating a payment gateway into your website, which customers will use to initiate card payments.
• Bank-to-bank transfers
• Marketplaces such as Amazon or eBay - you create your own store, and the platform handles payment processing, although you’ll usually need to pay extra fees to sell via marketplaces.

How to accept credit card payments online without a merchant account?

Now, let’s focus specifically on how you can take credit card payments online, without needing to open a merchant account with a bank.

The easiest way is to use a payment service provider (PSP) or payment facilitator (PayFac). Both types of company facilitate payments for businesses, but they work in a slightly different way.

PSPs tend to provide individual merchant accounts to businesses, while PayFacs have a master merchant account and then create ‘sub accounts’ for each business. They also handle risks associated with payment processing slightly differently.

As a business though, you don’t necessarily need to worry about this - as many of the big names in payment processing effectively do both.

Let’s take a look at some of them now:

Wise Business

Wise Business isn’t a payment gateway, but it does offer lots of ways to pay and get paid - and it’s especially good for international and multi-currency payments.

You can accept card payments online in currencies by sending payment links or QR codes, requesting payments or sending invoices. Alternatively, customers in other countries can make direct bank payments in their own currency to one of your local currency accounts.

Wise Business has the following fees:

• 1% for domestic card payments, 2.9% for international and business cards
• £45 to register for an account (one-time fee, no ongoing subscription fees)
• From 0.33% to convert currency, which is always done at the mid-market exchange rate.

It’s ideal for remote and mobile businesses, subscription services, international B2B service providers, global freelancers and consultants, and many other business types.

Get started with Wise Business 🚀

PayPal

The popular online payment platform PayPal offers payment processing for debit and credit cards, through a range of methods including invoicing, payment links and PayPal Checkout. You can also get a POS system to accept credit card payments in person. The platform allows you to accept payments in 25 currencies.²

Merchant fees charged by PayPal include:³

• 1.2% plus a fixed fee for card payments, additional fees for international transactions
• 3.5% for American Express credit card payments
• 2.9% plus a fixed fee for using PayPal Express Checkout.

There are also monthly fees for using website payments and POS services.

It’s arguably best for online sellers, although a wide range of businesses can make good use of it. Just make sure to read the fees list carefully, as there are a lot of charges and it can be quite complex.

Stripe

Stripe is a full-service PSP, offering a complete solution for accepting online and in-person card payments. It can also handle bank transfers, digital wallet payments and even link with buy now, pay later solutions.

It supports over 135 currencies,⁴ so is ideal for online sellers and other businesses which trade and operate internationally.

The fees to accept payments with Stripe are as follows:⁵

• 1.5% + 20p for all standard UK cards (1.9% + 20p for premium cards)
• 2.5% + 20p for EU cards, 3.25% + 20p for international cards
• 2% for currency conversion

Square

Primarily known as a POS system, Square is best for sellers with a bricks-and-mortar store, although it also offers online solutions. It’s popular among hospitality, retail, beauty and services companies, particularly smaller businesses.

You’ll need to sign up for a plan to get started. There’s a free plan, with upgraded plans costing from £29 a month. You then pay for the tools and services you need, with payment processing fees as follows:⁶

• 1.5% + 25p for UK cards
• 2.5% + 25p for non-UK cards.

Square lets you accept payments from international cards, but it doesn’t offer multi-currency support. This means payments will be converted into GBP by the cardholder’s bank.⁷

Shopify Payments

Shopify Payments is an integrated payment gateway from the ecommerce platform Shopify. It lets you manage payments directly within your Shopify dashboard, and accept all kinds of credit and debit cards.

You’ll need a Shopify plan first, with monthly fees ranging from £19 to £259, with an additional account costing $2,300 USD a month for more complex businesses.⁸

Card processing fees vary depending on your plan, but on the cheapest Basic plan you’ll pay:⁸

• 2% + 25p for UK cards
• 3.1% + 25p for international cards and American Express credit cards.

All plans offer currency conversion as standard, so prices will be automatically converted into your customer’s local currency.⁸

How to choose the right PSP for my business?

It’s crucial to choose the right payment processor for your needs, with cost being the most important consideration. Along with fees, you should also consider:

• Reputation and reliability - check out online reviews and any available data on platform downtime
• Features - for example, you might need recurring payments if you offer subscriptions
• International card acceptance and multi-currency support - this will be essential if you have customers in other countries
• Customer support - does the company offer UK-based support, and how quickly can you get help if something goes wrong?

Accept credit card payments online with Wise Business

For a simpler way to accept credit card payments online from customers all over the world, check out Wise Business.

With your account, you can request payments from customers in just a couple of clicks. Send a Quick Pay link or QR code, or create an invoice, and select ‘Card’ as the payment method. Your customers can simply enter their card details, and you’ll get a notification - the customer will also receive proof of payment by email. It’s easy, quick and convenient.

Best of all, it lets you accept credit card payments in currencies, so you can sell worldwide and let customers pay in their own currency.

It’s ideal for online sellers, remote and mobile businesses, subscription services, international B2B service providers, global freelancers and consultants alike.

Fees are low and transparent at just 1% for domestic (UK) cards, and 2.9% for all international and business cards.

Once you have a Wise Business account, you can apply for this useful feature and start accepting card payments.

Get started with Wise Business 🚀

FAQs - accept payments online without a merchant account

What are payment service providers (PSPs)?

A payment service provider (PSP) is a company which specialises in enabling businesses to accept electronic payments from customers. They provide a full package of infrastructure, equipment and software to help you accept payments in person and on your website. A PSP can also cover essential things like security and compliance.

How do PSPs differ from traditional merchant accounts?

PSPs may offer a merchant account - or the functionality of a merchant account, without actually having to open one. But they also do much more, offering you a comprehensive payments solution. This may include POS devices and software, custom checkouts and payment gateways and full payment processing.

Can I accept in-person card payments without a merchant account?

Yes, you can use either a PSP or a mobile payment processing app, linked to a card reader or other point of sale (POS) terminal.

Can I accept international card payments without a merchant account?

You can, but only if you choose a PSP which offers support for multi-currency and international payments. You can also look at alternatives such as Wise Business which allow you to accept card payments online in currencies.

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After reading this, you should have a better idea of all your options for accepting credit card payments online - whether or not you opt to open a merchant account.

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Sources used:

1. Payments Cards & Mobile - UK card payments top £1 trillion in 2024
2. PayPal - List of countries and currencies
3. PayPal - PayPal Merchant Fees
4. Stripe Docs - Supported Currencies
5. Stripe - Pricing
6. Square - Pricing
7. Square - Help - Accept payment cards with Square
8. Shopify - Pricing

Sources last checked on date: 03-June-2025