The best merchant service providers and credit card processing companies Want to start accepting card payments? We rank and review the best merchant service and card processing providers in the UK, based on our latest testing Written by Eddie Harris Reviewed by Ollie Simpson Updated on 25 July 2025 Our Research Our expert team of writers and researchers worked to identify the best payment processing and merchant account providers by focusing on the factors small businesses care about most – value for money, including fees and hidden extras; security protocols and fraud protection; customer support, and ease of access across platforms including mobile. Written and reviewed by: Eddie Harris Senior Reviews Writer Ollie Simpson Senior Research Executive Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. 1 of 3 Square: £0 monthly fees Learn More 2 of 3 takepayments: Next day settlements Learn More 3 of 3 Get matched with our providers Get Quotes Our research team conducted 45 tests over a total of 22.5 hours, completing 270 different evaluation tasks, in order to determine takepayments as the top merchant service provider for your small business. It excels by providing extensive data reporting, a bespoke fee structure, and a top-class card reader that came first in our roundup of the best card machines for small businesses. Best merchant service and credit card processing companies takepayments: best if you need flexible payment solutions Clover: best for an all-in-one solutionBarclaycard: best if you want to avoid hefty upfront costsSquare: best for a simple and straightforward solutionWorldpay: best for high volume businessesClick any of the links above to begin comparing costs on merchant account services for your own business’s size and needs. The UK has been hit with a heatwave, and both the Premier League and the Women’s Rugby World Cup are about to kick off. Hopefully, this will result in an uplift in sales for UK retailers, and so signing up with the right merchant service provider is essential to make the most of the summertime spending.The findings from our in-depth research will showcase the top five options for your small business, to help you decide which best supports your individual needs. 💡Key takeaways We voted takepayments as our top choice for its in-depth actionable data, next-day payouts and a fully-integrated handheld POS.Some key features to look out for include mobile payment/contactless, processing times and security measures.Monthly costs range from £0 to £15 (+ VAT).Consider payment options, transaction fees and contract lengths when choosing a provider. The best merchant service providers: comparison table Swipe right to see more 0 out of 0 backward forward FEATURED PROVIDER BEST OVERALL Provider Square Provider takepayments Provider Clover Provider Barclaycard Provider Worldpay Best for Best for a simple and straightforward solution Best for If you need flexible payment solutions Best for An all-in-one solution Best for If you want to avoid hefty upfront costs Best for High volume businesses Overall score 4.7 Overall score 4.8 Overall score 4.8 Overall score 4.7 Overall score 4.7 Transaction fees from 1.75% Transaction fees from Quote-based Transaction fees from Quote-based Transaction fees from Quote-based Transaction fees from 1.3% + 20p (pay as you go plan) Monthly costs None Monthly costs Quote-based Monthly costs None Monthly costs £15 + VAT Monthly costs Current offer: £1 monthly terminal rental for the first 12 months (additional fees may also apply) Contract length None Contract length One month minimum Contract length None Contract length None Contract length 18-month minimum Payout time One business day Payout time Next business day Payout time One business day (with Clover’s “faster funding”) Payout time One to two business days Payout time One business day Try Square Try takepayments Get Quotes Get Quotes Get Quotes We last updated this article on 25/07/2025 All pricing and information in this article was verified as accurate as of 25/07/2025. However, the payment processing industry can shift quickly, so we recommend business owners confirm any pricing or feature information with merchant account providers directly before making any purchasing decisions. How we test merchant services for small businessesWe are rigorous. We tested 26 merchant services, evaluating them on four key criteria for UK-based small businesses.Each provider then received a final overall rating based on how they performed in the below categories. Our ranking on the page is the result of this scoring system. Our main testing categories were: Card machines: Evaluating their charging power, receipt printing, connectivity, and interface. We also determine their usability based on two factors: how likely we are to recommend the product and the results of our user testing. Software: Assessing suitability for POS integration, as well as how the provider handles payouts, the data and reporting available, which payment types are accepted, what security measures are offered, and more. Help and support: Appraising the type, availability, and accuracy of the support the platform provides for its merchants. Pricing: Assessing all the costs involved with the provider. The transaction fees, contract costs, monthly costs, and upfront fees that the providers charge that will affect your bottom line. Video: what to look for in a merchant service providerOur in-house Research Executive, Olivia Bond, takes us through some key information on the best merchant service providers in our video guide: Loading 1. takepayments: best for a flexible payment solution takepayments 4.8 Try takepayments Starting software price: Quote-based Transaction fees from: Quote-based Custom, quote-based transaction fees Extensive reporting that provides actionable insights Next day payouts Summary takepayments is a UK-based company offering payment solutions including card terminals, online payments, and POS systems. It currently serves over 750,000 customers and is one of the fastest-growing card payment providers in the UK. We recommend takepayments to small businesses looking for flexible payment solutions. Show moreless Suitable if: You're a growing SME that wants in-depth actionable data and reporting on your sales You're a newer business that needs fast next-day payouts for a quick cashflow You're a small team that wants a fully integrated handheld POS (point of sale) you can manage your business from Not suitable if: You're trying to avoid monthly costs and want to own your hardware outright You'd prefer to have an app you can use to manage your sales from Why is takepayments a top choice for my business?takepayments provides everything you need for an all-in-one POS ecosystem, without the need for additional third party software or hardware. Its handheld card machines come fully integrated with POS software, meaning that from a single card reader you can:Take card paymentsManage your salesGet extensive reporting dataBenefit from a bespoke transaction fee structureStart taking card payments with the takepaymentsplus card machine. Source: Startups.co.ukAnother positive – superfast next-working-day payouts (most merchant services offer payout times of up to three working days). From pricing to its card machines and help and support options, we felt that takepayments performed strongly on almost every level.How much does it cost?takepayments provides bespoke transaction fees to clients, rather than set costs. Rather than being locked into one fee, your business will be able to grow and adapt with takepayments’ customised pricing structure.takepayments also offers its card machines on a monthly lease basis, which is good news if you’re trying to avoid upfront costs, but bad news if you want to own your card machines and avoid ongoing fees. If you’d prefer to buy outright, you could take a look at Clover instead.Contract:One month minimumProcessing fee:Quote-basedPayout times:Next business daySetup fee:NonePOS hardware costs:Quote-based monthly prices, terminal rental rates start from £7.50 per monthFree trial or plan:NoneFind out more about merchant service costs and charges in our guide to card processing fees. What fraud measures are in place? takepayments provides the Security+ package. This will perform a quarterly secure transactions review, and will regularly provide cyber security updates directly into your inbox, giving you peace of mind. What help and support does takepayments offer?takepayments provides an impressive range of help and support options, including via phone, email, live chat and even a knowledge centre. Unfortunately though, its support isn’t available 24/7. Take a look at Worldpay or Barclaycard for all-hours assistance. What our researchers think The standout feature of takepayments for me is that everything is bespoke and fitted to you and your company’s needs. They don’t offer a one-size-fits-all package and this is going to give your business the best chance of growing organically and give you the knowledge that you’re never paying more than you should for transaction fees. Ollie Simpson Senior Research Executive Important to know: compliance in merchant accounts It’s critical for merchants in the UK to be fully PCI DSS compliant.This stands for Payment Card Industry Data Security Standard, and it’s in place to safeguard sensitive payment data throughout the payment lifecycle.All merchants, regardless of size, must adhere to PCI DSS standards. It’s your responsibility as the merchant to be PCI compliant, but also ensure your chosen merchant account provider is PCI DSS and GDPR compliant as well.Failure to do so could result in big fines and penalties.Another term you might come across in payment security is tokenization: this refers to when sensitive payment information is replaced with a set of random non-sensitive characters (known as “tokens”), to keep the transaction secure.All the providers we have included in our roundup are both PCI compliant and hold an ISO 27001 certificate (an internationally recognised standard for information security management). 2. Clover: best for an all-in-one solution Clover 4.8 Get Quotes Monthly fees: From £1 (18-month contract) Transaction fees from: 1.49% No monthly fees, setup costs, or fixed contracts You can manage your entire business from one card machine Exceptional offline functionality Summary Clover is a global payment solutions provider offering a range of services including card machines, online payments, and advanced POS systems. Available in the UK, Clover supports thousands of businesses with scalable and user-friendly technology. We recommend Clover to businesses seeking a reliable and modern payment solution. Show moreless Suitable if: You're a fledgling business that doesn't want to be locked into a monthly contract You're a smaller pub or restaurant that wants a fully fledged POS system in one card machine You're an on-the-go business, like a food truck, that needs to take payments while offline Not suitable if: You want the reassurance of 24/7 help and support You're a pre-revenue business and you want to avoid steep upfront hardware costs Good to know Clover offers up to a maximum of £1,000 to cover any exit fees from your existing provider. There are also no monthly fees, setup costs, or fixed contracts – great for budget conscious, newly launched small enterprises. Why is Clover a top choice for my business?With Clover you can unify your operations and manage your entire business from one card machine. Its modern card reader comes fully equipped with features like:A helpful inventory management system The option to add notes to customer orders (such as a specific request)Advanced sales analytics dashboardExcellent offline functionalityIn our testing we found the Clover Flex to be a sleek and modern card reader. Source: Startups.co.ukOther providers on the list have an offline mode, but Clover can take offline payments for up to seven days – which is incredibly helpful if you’re a mobile business, like a food truck, operating in areas with poor or no signal.If you need fast payouts, Clover’s ‘rapid deposits’ feature transfers your funds to your bank account in one business day (the charge for using this feature is 1.5% of the deposit amount). Otherwise, payouts can take between one and three business days.How much does it cost?Clover’s fees are bespoke, and dependent on your business size and specific needs. However, it’s currently running a promotion where you get a 1.49% transaction fee on all cards starting from £1 (which includes a device). Just be aware that this will be on an 18-month contract.Something to keep in mind though: the hardware can be expensive when bought outright. Clover’s card machine, the Clover Flex, costs an eye-watering £450 upfront.Contract:NoneProcessing fees:From 1.49% (on an 18-month contract)Payout times:Next business day with faster fundingSetup fee:NonePOS hardware costs:£450 for the Clover FlexFree trial or plan:Free plan What fraud measures are in place? Clover uses EMV 3DS to authenticate its payments, which helps defend against card-not-present fraud, which can be a big pain point for online sellers, and merchants who take card payments over the phone. What help and support does Clover offer?We found Clover to provide solid help and support options, and we were pleased to find that the answers to our test questions were reassuringly accurate. It’s worth noting that Clover doesn’t offer 24/7 support – it operates from 8am till 9pm on weekdays. If you need round the clock support, jump over to Barclaycard or Worldpay instead. What our researchers think I loved the clover platform thanks to its huge app store that allowed me to connect with tonnes of apps, and the ease at which you can link multiple selling platforms. They have a great in-person choice as well as excellent ecommerce options that can link to sites like Shopify and WooCommerce. Ollie Simpson Senior Research Executive 3. Barclaycard: best if you want to avoid hefty upfront costs Barclaycard 4.8 Get Quotes Monthly fees: £15 + VAT Transaction fees from: Quote-based Barclaycard’s Smartpay Touch card machine can act as an all-in-one POS solution Offers 24/7 fraud monitoring services Requires you to have a Barclays bank account already setup Summary Barclaycard is a leading UK-based payment provider offering solutions such as card machines, online payment gateways, and POS systems. Barclaycard is a trusted name in the payments industry. We recommend Barclaycard to businesses looking for secure and well-established payment solutions. Show moreless Suitable if: You're an early stage startup looking to avoid large upfront costs Your business is already banking with Barclays You're a micro-business or solopreneur who wants an all-in-one POS solution Not suitable if: You're an on-the-move worker and you need to take offline payments You don’t already have a Barclays bank account and don’t want to switch You want to use Tap to Pay on mobile Want to take online payments? Check out our guide to the best payment gateways and online payment providers, backed by our rigorous testing. Why is Barclaycard a top provider for my business?Barclaycard combines its extremely competitive pricing structure with a wide range of card machines. Barclaycard’s Smartpay Touch card machine can act as an all-in-one POS solution, giving you the power to:Add productsPrint out sales reports and customer receiptsAccess sales data from the card machineBarclaycard’s small business card reader can be used across multiple devices, including mobiles and iPads, for wait staff and managers to use. Source: barclaycard.co.ukI especially liked that you could separate out categories like starters, mains and snacks, which I feel would be great for fast-paced food & beverage businesses that need to take speedy payments.Just keep in mind that Barclaycard’s card machines can’t take payments offline. So if your signal drops you’re out of luck. For a service with some excellent offline features, I’d recommend checking out Clover instead.How much does it cost?With customisable transaction fees, no initial setup fee, and no upfront costs for some of its card machines (these are leased for a monthly fee), Barclaycard makes for an incredibly attractive option if you’re trying to keep costs low. The key caveat is that you will need to have a Barclays bank account. Barclaycard offers up to a very generous £3,000 to help cover any exit fees though, if you do switch.Contract:NoneProcessing fees:Customised pricingPayout times:One to two business daysSetup fee:NonePOS hardware costs:Monthly fee from £15 + VAT (or a one-off fee of £29 + VAT for the Barclaycard Smartpay Anywhere)Free trial or plan:None What fraud measures are in place? Barclaycard also provides 24/7 fraud monitoring services. A reassuring feature if you’re the type of merchant who’s dealing with stressful high value transactions – such as trading in luxury items like watches, jewellery or vehicles. What help and support does Barclaycard offer?Barclaycard stands out thanks to its all-hours accessibility, and we found that the knowledge centre provided an impressive level of accuracy. The only significant miss is no live chat function for getting speedy answers to any queries, which both Clover and takepayments provide. What our researchers think If you already bank with Barclays, then I’d highly recommend choosing Barclaycard for your online payment solution. I’m really impressed by their 24/7 support and fraud monitoring and the fact that they offer up to £3,000 for switching platforms. Ollie Simpson Senior Research Executive 4. Square: best for a simple and straightforward solution Square 4.7 Try Square Monthly fees: None Transaction fees from: 1.75% No monthly costs Provides live transaction monitoring Offers a simple and straightforward solution Summary Square Terminal is a versatile payment device that allows businesses to accept a variety of payment types. Known for its simplicity and modern design, it’s a popular choice among UK merchants. We recommend Square Terminal to businesses seeking a straightforward and flexible way to take payments. Show moreless Suitable if: You operate in areas with bad signal and you need to take offline payments You're just starting out on your small business journey, and you want a free plan You need a fast cashflow (to quickly restock inventory, for example) and require fast payouts Not suitable if: Your business already uses a POS system you want to integrate Your business operates around the clock and you need 24/7 customer support You want to be able to connect via mobile data Why is Square a top provider for my business?Square is incredibly user-friendly, and the simple platform is easy to setup and use. It also provides an entire payments ecosystem, with in-person POS and ecommerce all under one roof, so you won’t have the headache or cost of third party software, hardware or integration. Though you won’t be able to integrate existing POS hardware or software.I was impressed by Square’s excellent software, boasting:Advanced security features An offline modeFast one-business-day payouts, with a customisable schedule When we tested the Square Terminal, the large display screen made it really easy to see our transaction total. Source: Startups.co.ukSquare also offers a wide range of POS hardware, but be aware that Square doesn’t currently offer a card machine that can connect via mobile data. So, mobile businesses that can’t rely on wifi should look to the Clover Flex instead.How much does it cost?Square offers a free plan, meaning it doesn’t charge any setup costs and, unlike with Barclaycard, takepayments and Worldpay, there are no monthly costs to pay either.However, Square’s transaction fees are about average. This means you won’t be overpaying, but if you’re taking a lot of high value transactions then you’d potentially be better off with Worldpay.Contract:NoneProcessing fees:From 1.75% for each contactless, chip and PIN or swiped card-present transactionSetup fee:NonePOS hardware costs:Ranging from £19 + VAT to £149 + VAT upfrontFree trial or plan:Free plan What fraud measures are in place? Square gives merchants confidence over their payments by providing live transaction monitoring. If Square spots any suspicious activity, they will notify you by email or SMS.Square also uses its proprietery tokenization scheme to prevent unencrypted payment data from touching your application or card reader, and uses its own vulnerability management suite to test its security. What help and support does Square offer?Just be aware that Square’s support is only available from 9am to 5pm on weekdays, which is pretty weak when compared to some of its competitors, especially a 24/7 service like Barclaycard’s. What our researchers think The platform is really easy to use and we were able to create a site and get ready to take payments in under 60 minutes. Plus you can do all of this completely for free and avoid committing to any major costs up-front! Ollie Simpson Senior Research Executive 5. Worldpay: best for high volume businesses Worldpay 4.6 Get Quotes Read our full Worldpay review Monthly fees: From £19.95 Transaction fees from: Worldpay eCommerce payment gateway: 1.3% plus 20p Low transaction fees, depending on your processing volume Wide range of help and support options, including a forum Worldpay Dashboard gives you insights into your sales Summary Worldpay is a complete online payments service that gives you the ability to take payments directly from your website or app. We would recommend Worldpay to businesses who mostly deal in infrequent but high value sales. This is due to its fee structure with minimum amounts. Show moreless Suitable if: You're an established business with a high turnover You want to choose from a range of card machines Your business already has a POS system you want to integrate Not suitable if: Your business has a lower turnover, (less than £75,000 a year) You don’t want to be locked into a contract You’re just starting out as a business Why is Worldpay a top provider for my business?Worldplay is a great option for more established small businesses that don’t mind being tied into a longer contract. It’s best suited to infrequent but high cost transactions – for example, selling luxury items – as you’ll benefit from the minimal percentage charged per sale.Worldpay countertop terminals and mobile card readers suit almost any business – they can receive a signal from:EthernetMobile dataWifiAt a Nisa Local in South London, manager Kameron Patel described his experience with the Worldpay card reader, stating that “it has never caused me any hassle, and does what it is meant to do efficiently, with no problems”.Worldpay also provides its payouts within one business day, and you can customise your deposit schedule. If you’re a business with a lower annual turnover though, I’d recommend taking a look at a newer starter-friendly provider like Square instead.How much does it cost?Depending on your processing volume, Worldpay can charge a rock bottom fee of 0.75% for debit cards, which is a pretty impressive rate considering the UK average across providers is 1.75%.The catch is that you’ll have to enter into an 18-month minimum contract with Worldpay, and pay an exit fee if you choose to switch. You’ll also have to keep in mind that Worldpay has a £5 PCI service fee and a minimum monthly service charge of £15.Worldpay does also offer a pay-as-you-go service, which is subject to a charge of 1.3% plus 20p.Contract:18-month minimumProcessing fees:1.3% + 20p (pay as you go plan)Payout times:Next business daySetup fee:NonePOS hardware costs:£22.50 per month (currently £1 per month with a special offer)Free trial or plan:None What fraud measures are in place? Worldpay uses FraudSight, its multi-layered fraud solution, which is able to analyse a transaction in milliseconds to determine if it is fraudulent.It also offers WorldPay OmniToken, a tokenization process that can help minimise fraud. What help and support does Worldpay offer?I was impressed by Worldpay’s range of 24/7 help and support: phone, email, live chat, and a knowledge centre. The forum where you could interact with other merchants was a particular bonus, one overlooked by every other provider on this list except Square. What our researchers think I’m really impressed by Worldpay and would 100% recommend them for rapidly growing or established businesses looking to take online payments. They’re such a powerhouse in this world and they have so many great features, such as pay by link – which is great for on-the-go merchants as well as next-day payouts – and a huge dashboard to closely analyse your best payment methods. Ollie Simpson Senior Research Executive Buying guide: how to choose a merchant service providerChoosing the right merchant service provider can significantly impact your operations and bottom line. Here are the essential factors to consider:Payment options: whether you take payments in person, over the phone, or online, you need to make it as easy as possible for customers to spend their money with you.Transaction fees: these can vary widely and fluctuate. Look for transparent pricing models with competitive rates and keep an eye out for common hidden charges that might inflate costs over time.Contract lengths: some providers lock businesses into lengthy contracts. Opting for a brand that offers reasonable contract lengths with the option for shorter terms or no long-term commitment can be a good way to hedge your bets.Accepted payment types: whether it’s credit or debit cards, mobile payments, contactless, or digital wallets, a comprehensive range of accepted payment methods can broaden your customer base and increase sales opportunities.Compliance measures: verify that the provider adheres to industry regulations and standards for data security and compliance. PCI DSS compliance is absolutely essential.Help and support: look for providers with accessible customer service channels (such as email, live chat, and phone support) as well as customer forums to find out how a provider performs straight from the horse’s mouth.Integrations: keeping track of your myriad tech products is easier if your business software can integrate and create one unified system. Worth knowing Let’s say your merchant account integrates with accounting software like Xero. You’ll be able to:Simplify compliance with financial regulations by recording every transactionGenerate accounting reports to gain insights, such as product salesAutomate painstaking admin processes like account reconciliationInput data accurately to eliminate the risk of errors How much should I pay for a merchant service?Throughout this guide we refer to several types of fees that are charged by merchant service providers. These can vary greatly depending on factors like your business size, industry, transaction volume, and chosen provider.However, here’s a breakdown of the most common payment processing costs incurred by UK sellers and why you must pay them:Transaction fees = every time a customer makes a payment to your business (whether in person or online) you will need to pay a fee to the payment processor. This is usually between 1.5% and 3.5%.Card machine/reader fees = the cost of a card machine or reader varies, with basic readers starting at around £20 and advanced models reaching over £300. Some providers offer free readers with their plans.Virtual terminal fees = virtual terminal fees are paid when you accept a customer’s payments through a virtual terminal (over the phone, or via email or online form). They are typically a percentage, and range from 2% to 4% per transaction.Payment gateway fees = paid when your customers buy something online, this fee covers the cost of the gateway’s technology and services. It is usually around 0.5% to 1.5% per transaction. Some gateways charge a monthly subscription fee, ranging from £10 to £50+.You may also be charged additional fees such as chargeback fees (when a customer disputes a transaction) or settlement fees (usually 20p to 50p) for transferring funds to your bank account.The bottom lineIf you’re looking for a merchant service provider, we feel that takepayments should be at the top of your list. It came out on top during our extensive testing process thanks to its custom, quote-based transaction fees, detailed dashboard, its all-in-one POS system and lightning fast next-working-day payouts.There might be another provider more suited to your niche requirements though, for example Worldpay is best suited to high-volume businesses, so make sure to read through our recommendations to see what’s right for you! Jump back up to any of our reviews: Best merchant services: comparison table How we test card processing products and merchant services for small businesses 1. takepayments 2. Clover 3. Barclaycard 4. Square 5. Worldpay Buying guide: how to choose a merchant service provider How much should I pay for a merchant service? Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Written by: Eddie Harris Senior Reviews Writer Eddie is resident Senior Reviews Writer for Startups, focusing on merchant accounts, point of sales systems and business phone systems. He works closely with our in-house team of research experts, carrying out hours of hands-on user testing and market analysis to ensure that our recommendations and reviews are as helpful and accurate as possible. Eddie is also Startups video presenter. He helps create informative, helpful visual content alongside our written reviews, to better aid customers with their decision making. Eddie joined Startups from its sister site Expert Reviews, where he wrote in-depth informational articles and covered the biggest consumer deals events of the year. And, having previously worked as a freelancer providing screenplay and book coverage in the film and television industry, Eddie is no stranger to the demands of the sole trader. Reviewed by: Ollie Simpson Senior Research Executive After three years of refining my skills in data analysis, I transitioned to a role as a researcher to help understand our readers' preferences and needs. My professional journey started as a researcher in law enforcement, where I developed strong analytical abilities. Later, I moved into operations, strengthening my understanding of quantitative data. Now, I blend my quantitative analysis skills with qualitative research to explore both audience preferences and product nuances. Armed with a UX design diploma, I translate research findings into actionable insights that facilitate informed decision-making. Whether enhancing Startups offerings or delivering research presentations, I am driven by a relentless pursuit of improvement and results.