UK Merchant Accounts Comparison: Our 2026 Guide

After researching and testing 18 leading providers, we found that takepayments is the best contract-based merchant account for 2026, thanks to its powerful EPOS-style features, next-day settlements for card payments and custom rates that offer a particularly great value for high volume sellers.

If you’d prefer a pay-as-you-go option without long-term commitments, Clover is our top zero-contract pick, offering sleek credit card terminals and competitive custom rates for growing businesses, while Square will be a great fit for new sellers keen on avoiding up-front costs.

Merchant accounts are essential if you want to take card payments cheaply — they act as a sort of holding pen for your customers’ money while the transaction is being approved. In this guide, we’ll explore the best contract-based and plug-and-play merchant accounts, helping you compare costs, features, hardware, and contract terms to find the right fit for your business.

Best Merchant Accounts (2026) Compared Side-By-Side

Before we dive into our detailed reviews of each provider, here’s how the top merchant accounts compare when it comes to up-front and ongoing costs, fund transfer time and contract length.

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Best Contract-Based Merchant Accounts (2026) In-Depth Reviews

Contract-based merchant accounts offer their services through fixed-term agreements. They tend to charge low (and usually negotiable) transaction fees in exchange for a monthly fee. By and large, they also lease their card machines instead of selling them to you.

Here’s a quick overview of the best contract-based merchant accounts:

1. takepayments: Best for Flexible Pricing and EPOS Features

takepayments is one of the best merchant account providers for getting cheap transaction rates, thanks to its flexible, custom pricing structure.

Its hardware supports a range of industry-specific features, including product catalogues, tipping, staff tracking and reporting, making it a practical choice for shops, cafés and restaurants that want EPOS-style functionality without investing in a full standalone system.

What did we like about takepayments?

takepayments’ pricing is bespoke and tailored to your business’ budget. Card processing rates typically range from 0.3% to 2.5% plus a flat fee, which is adjusted based on business type. However, high-volume merchants can secure competitive custom rates of under 1% per transaction for standard UK cards.

We were also impressed by takepayment’s reporting tools. Users are able to analyse a wide range of trends and metrics, from best-selling products and peak times to staff performance, turning raw data into useful actionable insights.

Since the reports come from their EPOS software, they are purpose-built for retail and hospitality workflows, providing businesses with even more targeted findings, like table turnovers in restaurants or product categories in retail stores.

takepayment’s really excels when it comes to hardware. The provider performed better than any other merchant account in our independent research, due to its proprietary takepaymentsplus card machine.

Essentially functioning as a mini EPOS device, you can add new products with prices and make adjustments directly from the card machine, without having to log into the backend on your desktop.

We tested it and found it extremely ergonomic, despite its size. It was also highly intuitive to use on the first try, so you should be up and running with it in no time.

What didn’t we like about takepayments?

takepayments is a little old-fashioned, as merchant account providers go. It doesn’t have an app you can access the backend from, and as such, doesn’t have a function for accepting payments directly from your smartphone. If that’s what you’re looking for, providers that offer both include Tyl by NatWest and Tide.

Like most contract-based merchant account providers, takepayments also doesn’t sell its card machines outright but instead charges a monthly licensing fee. This can add up over time, so if you want a provider you can purchase equipment from, we suggest Clover or Tide.

2. Worldpay: Best for High-Volume Sellers After Low Transaction Rates

Worldpay is one of the biggest payment solutions providers on the market and is a great option for high-volume businesses, thanks to its custom transaction rates and low minimum spend charges.

However, while this pricing structure can work well for established businesses, businesses with lower annual turnovers (under £75,000) may be better off choosing a provider with simpler pricing and faster settlement, such as takepayments or Square, instead.

What did we like about Worldpay?

Worldpay offers bespoke transaction fees for businesses with over £75,000 a year in card turnover, which can get as low as 0.75%, well below the UK average of 1.75%. It also offers fixed-rate fees of 1.5% for businesses with under £50,000 a year in turnover, which are still below the national average.

Besides that deal for businesses processing over £75,000 each year, Worldpay also allows you to calculate expected transaction fees using its Pricing Calculator.

At around £50,000 annual turnover, in-person card processing rates start at 0.6% (debit) and 1.4% (credit), rising to 1.0% (debit) and 1.8% (credit) for online or phone payments. As turnover increases, rates fall, with businesses taking £300,000+ seeing in-person fees from 0.4% (debit) and 0.9% (credit), with online rates from 0.8% (debit) and 1.3% (credit).

Prices checked via Worldpay, correct as of February 2026

We recommend Worldpay for high-volume merchants because it specializes in enterprise-scale features like advanced fraud prevention, and the fact that, unlike takepayments, it specialises in serving large businesses, means it can support your business as it grows. takepayments, on the other hand, advertises itself as a solution for small businesses.

Examples of services suited to growing businesses are Worldpay’s proprietary advanced fraud prevention features, which are all the more essential when you’re processing a large volume of transactions. We’d recommend Worldpay’s Fraudsight, which uses the latest technology to predict fraudulent transactions before they occur.

Worldpay’s software also integrates with a large amount of third-party software, including ecommerce systems like WooCommerce and Shopify, as well as popular EPOS systems, like Epos Now, making it easy to use Worldpay’s card processing services alongside the rest of your merchant toolkit.

What didn’t we like about Worldpay?

Worldpay isn’t the best solution for businesses with low card turnover. Its starting 1.5% transaction fee is still below the national average, but you can get cheaper fixed fees of 1.39% + £0.05 with Tyl by NatWest, which has a plan specifically designed for new businesses, or ones with low turnover.

Its card machine licensing fees also start at £9.99 per monthly, almost half the price of Worldpay’s starting fee of £17.50 per month.

Worldpay also has one of the longest contracts we’ve seen, with an 18-month minimum. One-year contracts are quickly becoming the standard for contract-based merchant account providers and are the length with both takepayments and Tyl by NatWest. You can also opt for a zero-contract option for maximum flexibility, like Clover, Barclaycard or Tide.

3. Tyl by NatWest: Best for Small or Mobile Sellers After Low Up-Front Costs

Tyl by NatWest is a merchant account provider that offers some of the cheapest fixed rates on the market, making it an affordable option for new or small businesses.

However, Tyl by NatWest requires a NatWest business account, which may not suit everyone — particularly businesses already banking elsewhere or those wanting a standalone merchant services provider without switching banks.

What did we like about Tyl by NatWest?

Tyl by NatWest makes it simple for UK businesses to start taking card payments while avoiding high costs upfront. Its card machine rentals start from £13.99 + VAT per month, which is much less than takepayments entry price of £25 per month and Worldpay’s £17.50.

Tyl charges 1.39% + £0.05 for most UK and European personal cards and 1.99% + £0.05 for other cards. These fees apply to both in-person and card-not-present transactions, like ones made over the phone or online, which is a rarity. Card-not-present fees at fixed rates are often over 2%, as is the case with SumUp, which charges 2.5%.

Tyl by NatWest also offers custom fees to businesses with over £50,000 in annual card transaction turnover, which is a lower threshold than Worldpay’s £75,000, and doesn’t charge any monthly service fees. This makes Tyl a solid option for established small to mid-sized businesses that are processing consistent card volumes and want access to custom rates.

Tyl by NatWest’s card machines themselves are modern, touchscreen devices that support Wi-Fi and 4G connectivity, and have a dedicated offline mode.

The terminals accept all major payment methods, including contactless, chip and PIN, Apple Pay and Google Pay, and integrate with POS systems like Epos Now and Lightspeed, making them suitable for retailers and hospitality venues after a more connected setup.

What didn’t we like about Tyl by NatWest?

Getting a Tyl by NatWest merchant account requires you to get a NatWest business bank account. So, if you don’t already bank with NatWest, and aren’t looking to switch, it’s not the provider for you. Clover offers more flexibility on this front, allowing you to work with the bank of your choice.

Tyl by NatWest’s reporting tools are also a little lacking, limited to end-of-day reports. So, if you want more insight into your data, we’d suggest takepayments or Worldpay.

The Best Zero-Contract Merchant Account Providers in 2026

Zero-contract merchant accounts don’t require you to sign a fixed-term contract, providing their service on a pay-as-you-use basis. While they don’t incur fixed monthly costs, they typically charge high transaction fees. And, unlike their contract-based counterparts, they usually sell their card machines outright.

Here’s a quick overview of the best zero-contract merchant accounts’ fees and charges:

1. Clover: Best for Merchants Who Want To Integrate a POS System

Clover is a zero-contract payment services provider that also specialises in EPOS systems and is a great option for businesses seeking sleek hardware and competitively customized transaction fees.

What did we like about Clover?

Clover is a great merchant account provider for businesses that are also interested in using its excellent EPOS system, which we rated one of the best EPOS systems in the UK.

Merchants processing high transaction volumes can negotiate custom fees as low as 0.2%. Plus, Clover provides support to businesses switching to them from another provider, offering up to £1,000 cashback to cover cancellation costs.

On the hardware side, Clover has a card machine that doubles as a mini EPOS system, the Clover Flex. It’s got a built-in receipt printer and barcode scanner, and a large touchscreen, which we appreciated when we were testing it, since it made it easier to input information.

Clover also offers three different countertop EPOS terminals, which you can use alongside, or instead of its card machine, since they all have built-in card readers. All of its hardware has a polished, modern appearance, which is right at home in any trendy or upscale business.

What didn’t we like about Clover?

Clover doesn’t have an app that enables tap to pay on a smartphone, and its hardware options are generally more geared towards fixed businesses, like restaurants or stores, rather than on-the-go ones. Its card machine for example, while mobile, is quite bulky.

Clover is also quite secretive about its pricing, which is unusual for a zero-contract provider, so you won’t know how much it’ll cost you until you’ve got a contract proposal in front of you. If you want a provider with clear pricing, we suggest Tyl, Tide or Barclaycard.

2. Barclaycard: Best For Businesses That Bank With Barclays

Barclaycard’s pay-as-you-go card reader and payment processing services are a great option for businesses that already bank with Barclays and are looking for a no-strings-attached way to take payments.

What did we like about Barclaycard?

Barclaycard, while offering contract-based services, also has an attractive zero-contract pay-as-you-go deal. With the deal, businesses get a mobile card machine for a one-off fee of £29 + VAT, and pay transaction fees of 1.6% (although variable fees for high-volume or high-value transactions are available upon discussion).

This allows you to start selling for minimal upfront costs, and no monthly fee — all you pay are transaction fees.

Alongside its mobile reader, Barclaycard has recently expanded its hardware range with new portable and countertop card terminals, giving businesses more choice depending on how and where they take payments.

The portable terminal is well-suited to cafés, restaurants and service-based businesses that need flexibility around the premises, while the countertop terminal is a strong fit for checkout counters where reliability and speed matter most.

Barclaycard also has 24/7 fraud monitoring, which means that suspicious transactions are flagged as soon as they appear, keeping your business and customers safe.

What didn’t we like about Barclaycard?

Working in a similar way to Tyl by NatWest, signing up for a merchant account with Barclaycard requires you to have a Barclays business account. If you don’t already have one and don’t want to switch, we suggest you look at Clover, which allows you to choose the bank of your choice.

Barclaycard’s software also doesn’t work with other EPOS systems, although a Barclaycard account does come with basic EPOS functions like product categorisation. Lastly, Barclaycard card machines don’t have an offline function, so if you lose connectivity, you won’t be able to take payments. If this is a concern for you, we suggest Tyl by NatWest, which logs offline payments for up to seven days.

3. Square: Best for New and Micro-Businesses

Square offers a merchant account service as part of its all-in-one ecosystem, giving sellers a way to accept card payments, access basic POS tools, and manage sales without monthly fees or long-term contracts.

This makes the merchant account ideal for new and micro-businesses, sole traders and low-volume sellers, after a simple, low-risk way to start accepting card payments while avoiding upfront costs.

What did we like about Square?

Square’s free plan comes with 1.75% transaction fees, which is in line with many UK paid providers — but without any monthly subscription or long-term contract. This makes Square a more cost-effective solution than merchant accounts like Clover and Barclaycard, considering its free-forever plan, which helps sellers avoid up-front costs.

You also get access to a solid set of POS features, including inventory tracking, product catalogues, digital receipts, basic reporting, and staff management tools, all included at no extra cost.

When we tested out Square’s software, we were impressed at how slick and modern its interface was. The platform was easy to navigate, and its large display made running up orders and managing sales straightforward. This low learning curve makes it especially well-suited to micro-businesses and sellers using merchant accounts or POS software for the first time.

What didn’t we like about Square?

One of Square’s biggest drawbacks is that it doesn’t integrate with third-party POS systems. This prevents businesses with pre-existing EPOS setups from integrating Square’s card processing into their existing software, requiring a full system switch rather than a simple integration.

Another weaker area is customer support. Square’s help centre doesn’t offer round-the-clock assistance, which may be frustrating for businesses trading on evenings, weekends or extended hours. If it’s 24/7 support you’re after, we’d recommend using a merchant account like Worldpay or takepayments instead, both of which offer more comprehensive support options.

Buying Guide: How to Choose a Merchant Account

When comparing the best merchant accounts, it’s important to evaluate what matters the most before signing up. Here are some key points to consider to ensure you find a merchant account that fits your budget and long-term plans.

• Compare contract-based versus zero-contract providers: Contract-based merchant accounts usually offer lower transaction fees but require a fixed monthly cost, while zero-contract providers charge higher transaction fees but do not lock you into ongoing monthly fees.
• Check for advanced reporting tools: Reporting features and third-party integrations are valuable because they give business owners insight into sales performance and operational trends. Prioritise providers that offer sophisticated tools like custom support and automated analytics.
• Be mindful of hidden fees: When comparing merchant accounts, businesses should look out for additional costs such as PCI compliance charges, chargeback and refund fees, payout or settlement fees, and early termination fees on contract plans. These charges can add up and significantly affect the true cost of your merchant account.
• Assess POS compatibility: If you take in-person payments, make sure your chosen provider supports the card machines, POS systems, or mobile hardware your business needs. Some payment processors offer their own devices, while others integrate with third-party terminals or full POS suites.
• Consider the quality of customer support: Reliable customer service can make a big difference, especially for small businesses that can’t afford downtime. Look for providers that offer responsive support through multiple channels — such as phone, live chat and email — and check whether assistance is available during your business hours.
• Understand payout times: Different merchant account providers have varying settlement times, which can, in turn, affect your business’ cash flow. If consistent cash flow is critical to your business’ operations, check how quickly you’ll receive your money and whether faster payouts come with additional fees.

How We Test Merchant Account Providers