Last reviewed: 28 October 2026. Provider fees, terms, and payment-method availability can change.

To take online payments in the UK, choose a payment method, select a provider, complete business verification, connect your payment channel, and test transactions before launching. You don’t necessarily need an ecommerce website, as payment links and online invoices can direct customers to hosted payment pages. The right setup depends on your business, customers, transaction volume, integration requirements, and costs.

Ways to Take Online Payments in the UK

UK businesses can accept online payments through website checkouts, payment links, online invoices, virtual terminals, and recurring payment arrangements. These elements can be broken down into three overlapping areas:

• The payment method (such as cards, digital wallets, Direct Debit, or bank transfers)

• The collection channel (where the payment is made)

• The integration that connects the provider to your business

Ways to Accept Online Payments: Comparison

Setup effort represents a general assessment, not a guaranteed implementation timeframe.

Ecommerce Website Checkout

Ecommerce checkouts allow your customers to pay via card or supported digital wallets when purchasing from your online store. These checkouts can often be connected through ecommerce plugins, hosted checkout pages, or embedded payment forms. Existing plugins can simplify installation, while more customised integrations may require a more complex setup and technical support.

Understanding the work involved in installation and maintenance should be part of your decision.

Hosted Payment Pages and Payment Links

Hosted payment pages facilitate transactions through a provider-managed checkout. These pages allow your provider to manage the payment process and handle sensitive card information, reducing your direct exposure to card data. However, your business still has applicable security and PCI DSS responsibilities.

Payment links can typically be shared through email, text messages, or other digital channels.

Although both can suit businesses without ecommerce websites, branding, automation, and checkout customisation depend on the provider. A dedicated ecommerce checkout may be a more suitable option if you require more complex shopping baskets and order management.

Online Invoices and Virtual Terminals

Online invoices let businesses request payments remotely, including deposits and staged payments. This makes them useful if you bill in stages or at project milestones such as trades or construction projects.

Virtual terminals allow you to accept payment over the phone, with authorised staff manually entering customer card details through a provider’s interface. Manually entered payments may carry different processing fees from standard online checkout, depending on the provider and transaction value.

Recurring Payments and Direct Debit

Recurring card billing allows you to collect payments on an agreed, recurring basis. Some subscription platforms also support automated retries when payments fail, but this may vary by provider, so do not assume it as standard.

Direct Debit instead collects money directly from your customers’ bank accounts with prior authorisation, making it a practical option for recurring bills, subscriptions, and memberships. It follows different processing arrangements and offers protections under the Direct Debit Guarantee, including refunds for qualifying collection errors.

Marketplace Payments and Bank Transfers

Marketplaces and booking platforms may collect customer payments on behalf of sellers, deduct charges, and control payout arrangements. Alternatively, bank transfers and supported Pay by Bank services let customers pay directly from their bank accounts. These methods can reduce reliance on card checkout, although payment experiences, protections, and settlement arrangements differ.

What Do You Need Before Accepting Online Payments?

Before you begin comparing online payment providers, gather information about your business and documents you may need during the application process. Requirements vary depending on the provider, your business structure, and the products or services you sell.

Business and Banking Information

Before applying, have the following on hand:

• Your registered or trading name

• Business address

• Legal structure

• Ownership details

• Identification documents

• Bank account details for payouts

• Estimated turnover

• Expected transaction volumes

• Average transaction values

Also be prepared to explain what your business sells and how orders are fulfilled. Depending on your industry and risk profile, you may be subject to additional checks, and acceptance isn’t always guaranteed.

Website, Platform, or Alternative Payment Channel

Whether you’re using an ecommerce website, an existing selling platform, payment links, or hosted checkout, prepare the following:

• Clear product or service descriptions

• Customer contact details

• Pricing

• Relevant delivery or fulfilment information

• Refund and cancellation policies

• A privacy notice explaining how customer information is handled

Basic Security and Operational Preparation

Protect your payment account with available security features, such as two-factor authentication, and limit staff access according to their responsibilities. Establish procedures for reviewing suspicious transactions, handling refunds and disputes, and recording payments.

Your accounting process should also allow you to match transactions and payouts with orders or invoices.

Remember, you don’t necessarily need a separate traditional merchant account, as some providers bundle payment processing and merchant payment services into one arrangement.

How to Set Up Online Payments: Step by Step

Before you can accept online payments, you’ll need to choose a suitable provider, complete verification, connect your payment channel, and test transactions before launch.

The exact process varies by provider, but the seven steps will take you from choosing a payment method to accepting and managing transactions.

1. Choose How You Want to Accept Payments

First, decide where your customers will pay.

If you sell products through an online store, an integrated ecommerce checkout may be the most suitable option. Payment links or virtual terminals are an alternative that also facilitate remote transactions.

Invoicing supports deposits and staged payments, making it useful for trades and construction businesses that bill at agreed project milestones. If you operate a subscription model, you may need recurring card billing or Direct Debit.

Estimate your monthly transaction volume, average transaction value, and likely customer payment preferences. Consider whether you’ll accept one-off payments, subscriptions, or international transactions.

It may be tempting to choose a provider with the most features, but simplicity and an arrangement that meets your requirements should be the priority.

2. Compare Online Payment Providers

Compare providers based on supported payment methods, integration compatibility, transaction fees, settlement arrangements, and contractual terms.

All-in-one payment service providers (PSPs) can combine payment processing, gateway functionality, and merchant payment services, potentially reducing the number of separate arrangements you need to manage. If you have a specialist integration, acquiring, or contractual requirements, you may also want to compare arrangements involving separate payment gateways and acquiring services.

Read our guides to Best Payment Gateway Providers and What Is a Merchant Account? to learn more about these topics.

3. Create an Account and Complete Verification

Once you’ve selected a provider, register your business and supply the requested information.

This may include your business structure, ownership details, identification documents, bank account information, expected transaction volumes, and details of your products or services.

Your provider will review the application and may request additional documentation, especially if you operate in a ‘high-risk’ sector. Do not expect to be automatically approved, as providers assess applications against their eligibility and underwriting requirements. Approval and activation times may also vary.

4. Connect Your Website, Platform, or Payment Page

Now it’s time to connect your payment channels.

If you have an ecommerce website, check whether your payment provider supports your platform through an existing plugin. You may also be able to connect hosted checkout, embed payment components, or use an API for customised integration.

If you don’t have a website, you may be able to create payment links or payment-enabled invoices through supported provider dashboards.

Some providers may offer guided onboarding while others operate a self-serve model. Typically, providers will provide integration instructions and resources to help with setup.

5. Configure Payment Methods and Customer Notifications

Choose which supported cards, digital wallets, and other payment methods to accept. Check your payment currency, product prices, and applicable VAT.

Configure customer receipts, confirmation emails, business branding, and payment notifications where available.

If you offer subscriptions, review billing schedules, failed-payment settings, and cancellation processes. You should also establish refund procedures and assign appropriate staff permissions.

Available configuration options depend on your provider and payment arrangement.

6. Test the Payment Process Before Launch

Providers may offer a test environment or sandbox where you can confirm everything is configured correctly and catch errors before they happen. Before going live, check the following:

• Complete successful and declined test payments.

• Check mobile and desktop checkout.

• Test customer authentication.

• Verify receipts and order-status updates.

• Test refunds and failed recurring payments where supported.

• Check for duplicate payment or order records.

Confirm that unsuccessful transactions display appropriate messages and do not create completed orders incorrectly.

7. Launch, Reconcile, and Monitor Payments

After testing and any required activation checks are complete, it’s time to go live. Confirm your bank details, settlement settings, and live payment configuration before accepting any real payments.

Monitor initial transactions, check customer confirmations, and reconcile payments against orders or invoices. Review payout reports to identify transaction fees, refunds, and other deductions.

Continue monitoring failed payments, fraud alerts, and disputes. Keep integrations updated and review account access regularly.

Accepting your first online payment completes the initial setup, but ongoing reconciliation, security, and customer support remain important.

How to Choose an Online Payment Provider

Finding the right online payment provider depends on how you accept payments, your operational requirements, and the total cost of processing transactions. Look beyond the cheapest advertised rate, and compare providers based on your sales volume, payment methods, existing systems, and future requirements to establish the total cost.

Payment Service Provider vs Separate Gateway and Acquirer

An all-in-one payment service provider (PSP) may combine checkout, payment processing, and merchant payment services. Some use shared merchant account arrangements, so businesses using these services may not need to arrange a separate traditional merchant account.

Alternatively, you may wish to arrange separate gateway and acquiring services. The payment gateway securely transmits payment information for authorisation, while an acquirer facilitates card-payment acceptance and settlement.

Bundled services can simplify setup and billing by reducing the number of separate provider arrangements you need to manage. If you need more control over your checkout, specialist integrations, or support for more complex payment operations, you may wish to compare both bundled and separate services.

For more information, read our guide to What Is a Merchant Account?

Online Payment Provider Selection Checklist

• Platform compatibility: Supported ecommerce plugins, hosted checkout, and integrations.

• Payment methods: Accepted cards, digital wallets, and alternative payment options.

• Remote payments: Payment links, online invoices, and virtual terminals.

• Recurring payments: Subscription billing and Direct Debit availability.

• Checkout experience: Mobile usability, branding, and customisation.

• International payments: Supported currencies, overseas cards, and conversion fees.

• Security: Fraud screening, authentication tools, and relevant compliance requirements.

• Settlement: Standard payout times, reserves, and faster-transfer conditions.

• Refunds and disputes: Processing procedures, deadlines, and potential charges.

• Reporting: Transaction records, accounting integrations, and reconciliation tools.

• Customer support: Available channels, operating hours, and onboarding assistance.

• Total costs: Setup, transaction, monthly, and additional service fees.

• Contracts: Minimum terms, cancellation conditions, and potential exit fees.

• Eligibility: Business restrictions, verification, and approval requirements.

• Scalability: Support for increasing volumes and additional payment channels.

Features, pricing, and availability may vary by provider, plan, integration, and country, so request and review the full written terms before signing with a provider.

For a more in-depth look at available options, check out our Best Payment Gateway Providers guide.

How Much Does It Cost to Take Online Payments?

The cost of accepting online payments depends on your provider, payment method, transaction volume, customer location, and any additional services you choose. Providers may charge transaction fees, monthly subscriptions, or a combination of both.

Common Online Payment Fees

Fees vary by provider; some bundle gateway and processing services, while others charge separately.

Why Total Cost Matters More Than the Headline Rate

It’s easy to focus on the lowest advertised transaction rate, but that doesn’t necessarily mean you’ll pay less overall. You also need to account for fixed charges, subscriptions, and any additional fees.

Just because the percentage rate is lower doesn’t guarantee lower costs. Fixed transaction charges have a greater proportional impact on smaller purchases, while monthly subscriptions can affect businesses with lower payment volumes.

Below are two hypothetical plans processing the same £10,000 monthly across 500 transactions averaging £20. In this fictional scenario, we will exclude international payments, refunds, and optional services.

Plan A: 1.5% + 20p per transaction, with no monthly fee. Total: £250.

Plan B: 1.1% + 10p per transaction, plus £30 monthly. Total: £190.

When comparing providers, account for additional software, recurring billing, international cards, and currency conversion.

For a more detailed breakdown, read our Card Processing Fees guide.

How to Keep Online Payments Secure

If you accept electronic payments, you are legally obligated to keep personal information secure. Failing to meet your data-protection obligations can result in regulatory action, including potential fines from the Information Commissioner’s Office (ICO).

Keeping online payments secure involves your payment provider, business systems, and internal procedures. While providers offer security tools, the responsibility remains on you to protect customer information, control account access, and monitor transactions.

PCI DSS and Business Responsibilities

The Payment Card Industry Data Security Standard (PCI DSS) establishes security requirements for protecting payment account data. Your responsibilities depend on how your business collects, processes, transmits, or stores card information.

Using provider-hosted checkout pages or secure hosted payment fields can prevent sensitive card details from passing through your servers, reducing your direct exposure and potentially your compliance workload. This does not mean you can neglect your website and account security.

Always confirm which requirements and validation procedures apply with your provider or acquirer.

Customer Authentication and Fraud Prevention

Strong Customer Authentication (SCA) applies to certain UK electronic payments. For online card transactions, 3D Secure may require your customers to verify their identity through their bank.

Payment providers may request exemptions for eligible transactions, but the card issuer can still require additional authentication.

Protect your payment accounts with two-factor authentication and appropriate staff permissions, use available fraud-screening tools to identify suspicious transactions, and establish procedures for refunds and chargebacks.

These measures can reduce fraud risks, but no single security measure guarantees complete protection.

Online Payment Security Checklist

Before accepting live payments, check that you:

• Use secure, provider-supported payment integrations.

• Keep ecommerce software and payment plugins updated.

• Restrict employee access according to responsibilities.

• Enable two-factor authentication on payment accounts.

• Avoid unnecessarily storing sensitive card information.

• Monitor suspicious transactions and fraud alerts.

• Maintain clear refund and customer-service procedures.

• Establish processes for handling disputes and chargebacks.

• Confirm applicable PCI DSS requirements with your provider.

As your business, systems, staff, and payment requirements change, come back to this checklist to ensure your security measures remain appropriate.

How to Improve Your Online Payment Experience

Checkout is the final step in your customer journey, and a difficult payment experience can make all the difference between making a sale and an empty basket. A smooth checkout helps customers complete purchases without unnecessary steps while making prices, policies, and security information easy to understand.

Make Checkout Easy on Mobile

According to ConsumerX survey data reported in 2025, 90% of UK respondents used their phones to shop online at least some of the time. This is why your checkout needs to work across phones and tablets, not just desktops. Keep forms short and buttons easy to identify, and ensure your customers can understand and correct payment errors.

Before putting the page live, test it on different devices and screen sizes to ensure customers can navigate the page, enter their details, and complete payments without unnecessary difficulty.

Offer Suitable Payment Methods

Understanding how your customers prefer to pay allows you to support card payments, bank payments, and relevant digital wallets where available. Remember, you want checkout to be simple to use and understand; adding in additional payment options for the sake of it may complicate checkout and actually deter sales.

Build Customer Confidence

You’re asking your customers to not only hand over their money but also sensitive information. Trust is everything at this final step.

Show the full price clearly, including applicable charges, before customers commit to paying. Make delivery, cancellation, and refund information easy to find, alongside your contact details.

Use provider-supported checkout interfaces and send payment confirmations or receipts where configured. Check that your chosen integration displays this information consistently.

Managing Online Payments, Refunds, and Reconciliation

Accepting online payments is only part of the process. You also need to track transactions, manage payouts, handle refunds, and maintain accurate financial records.

Tracking Transactions and Settlements

Where supported, use your provider’s dashboard to distinguish between payment authorisation, captured payments, and funds paid into your bank account. An authorised card payment means the card issuer has approved the transaction, not that the funds have reached your business bank account.

Match transactions against orders or invoices, then reconcile payouts with your bank records. Processing fees, refunds, and other adjustments can mean the amount received differs from your gross sales. Check pending payments, settlement schedules, and potential delays.

Refunds, Disputes, and Chargebacks

Eligible refunds can be issued through your payment provider; however, processing times, applicable charges, and whether the original transaction fees are returned will depend on your agreement.

If a customer disputes a card payment, retain order records, delivery evidence, and correspondence. Respond to chargeback notifications as soon as possible, as missing the deadline could mean you lose the dispute and the money.

The Direct Debit Guarantee provides full and immediate refunds for payments collected in error, while card chargebacks allow customers to dispute transactions through their card issuer. Complaints about goods or services are handled separately under your refund procedures and applicable consumer rights.

Accounting and Customer-Service Integrations

Use transaction exports or supported accounting integrations to track payments, fees, and invoices. Where available, automate payment-status updates, recurring billing notifications, and customer receipts.

Keep your contact information accessible so customers can raise payment queries or request assistance with refunds.

Which Online Payment Method Is Best for Your Business?

There is no definitive “best” payment method for all businesses. Instead, finding the right one for you depends on how your business operates, how customers prefer to pay, and the systems you already use.

Online Payments for Ecommerce Businesses

An integrated website checkout helps your customers pay for their online basket with a card or digital wallet. Choose a provider compatible with your ecommerce platform that supports your required checkout, refund, and fraud-prevention features. If you sell internationally, check which currencies and overseas-issued cards it accepts, along with any additional fees.

A more customised integration may require more technical expertise, so ensure you have access to someone who can both implement and maintain the payment integration.

Online Payments for Service Businesses

If you’re a service business, payment links or online invoices may be more practical than a full ecommerce checkout. Both can support remote payments, while some invoicing systems also allow deposits and staged billing.

If customers book appointments, a booking system that also collects payments may help you manage both processes in one place.

Virtual terminals also allow telephone payments, but staff must handle any customer card details securely when entering payments.

Online Payments for Subscription Businesses

If you operate a subscription model, then you’ll need recurring payment capabilities and clear customer authorisation. Also compare failed-payment handling, automated retries, cancellation procedures, and payment-method updates. Subscription-management tools may also carry additional charges, depending on your provider.

Online Payments for Charities and Event Organisers

For charities, you can use hosted payment pages or payment links to collect donations without building your own ecommerce checkout. Some providers may also offer recurring billing functionality.

For events, you can use ticketing platforms that manage payments and registration together. Check eligibility, transaction fees, refund arrangements, reporting, and who controls when event proceeds are released.

Online Payments for Businesses Selling Internationally

If you sell overseas, compare international card acceptance, supported currencies, and available local payment methods your customers actually use. International card-processing and currency-conversion charges can increase your overall costs, so factor them into your pricing and profit margins.

Shortlist the payment options that fit your sales process, then compare their setup requirements, transaction costs, and ongoing management before making a decision.

Online Payment Launch Checklist

Before you accept your first live payment, make sure you’ve completed the following checks:

• Choose a payment method suited to your business.

• Confirm provider eligibility and approval.

• Verify business and payout bank details.

• Review the complete fee structure.

• Connect the correct website, payment page, or platform.

• Configure accepted payment methods and currency.

• Confirm customer-facing pricing and policies.

• Review security settings and PCI DSS responsibilities.

• Test successful and declined transactions.

• Test mobile checkout and authentication.

• Check receipts and customer notifications.

• Test refunds and order-status updates.

• Confirm payout and reconciliation reporting.

• Establish responsibility for support and disputes.

Final Recommendations: How Should You Start Taking Online Payments?

Start by identifying where customers will pay, which payment methods they need, and how much you expect to process each month.

If you don’t need a full ecommerce website, payment links, hosted pages, or online invoices may be enough. However, if you do have an online store, prioritise compatible checkout integrations and a straightforward customer journey that makes it easy for your customers to complete the sale. For subscriptions, compare recurring card payments and Direct Debit, alongside tools for managing failed payments.

For higher-volume or international sellers, assess total fees, settlement arrangements, and operational requirements. Whatever you choose, always test payments before launch, confirm your security responsibilities, and establish payout reconciliation.

Explore our Best Payment Gateway Providers guide to compare UK options, or visit our Merchant Accounts hub for further guidance.

If you’re requesting tailored quotes, provide each provider with the same transaction estimates and requirements. Compare the full fee breakdown, included services, and contract terms rather than relying on the headline rate alone.