UK Merchant Accounts Comparison: Our 2024 Guide

Merchant accounts are essential if you want to take card payments, since they act as the midway point between a customer’s bank and your business bank account. And, since card usage now accounts for 90% of all UK retail spending, it’s more important than ever to have a merchant account.

According to our recent analysis of the top providers, takepayments offers the best merchant account on the market. Plentiful reporting features, bespoke transaction fees, and credit card machines designed for small businesses make it one of the most effective services for tracking and taking payments.

Of course, merchant accounts aren’t all created equal. Fees, contract lengths, and compliance measures vary from provider to provider. That’s why we’ve created this comparison guide to help you understand the different options available to businesses in 2024, and find a merchant account that works for you.

In this article, we’re going to cover two different kinds of merchant accounts:

1. Contract-based merchant accounts – available on fixed-term agreements, these charge cheaper transaction fees alongside a monthly fee.
2. Zero-contract merchant accounts – available on a pay-as-you-use basis with no contracts, these charge more expensive transaction fees but no monthly fees.

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The Best Contract-based Merchant Accounts in 2024

Contract-based merchant accounts offer their service 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, and the fees they charge:

1. takepayments

With a takepayments account, you’ll be able to track inventory in real-time, create customised categories, track employee sales, and even do accounting. The only merchant account on this list that comes close to that is Retail Merchant Services. takepayments can also support payments in 170 currencies, more than any other provider.

However, it is missing an invoicing tool, something you can find at competitors Zettle and Square, and takepayments cryptic pricing (everything is quote-based), might put some businesses off. Lastly, takepayments has a slightly lengthy process for PCI compliance. It does guide you through the process, unlike Retail Merchant Services, but you’ll need to complete an up to 300-page questionnaire.

How does takepayments compare to its competitors?

takepayments’ starting transaction fees are bespoke and negotiable. This can work in your favour if you process a lot of card payments each month. This is also the case with Retail Merchant Services and Worldpay, and you’re likely to get fees under 1% per transaction with all these merchant accounts.

That said, takepayments’ starting monthly fee (£20 + VAT) is pricier than Retail Merchant Services, which charges around £10 + VAT, and Worldpay, which charges around £15 per month. We should note that none of these providers advertise their pricing, so these are representative figures taken from previous quotes. You may be charged more, or less.

takepayments remains the champion of multi-currency support, accepting payments in 170 currencies, beating Worldpay’s 120 and Retail Merchant Services’ 140. However, multi-currency with takepayments requires API integration, unlike its competitors.

You’ll get your money the next working day with takepayments, a big improvement on Retail Merchant Services 3-5 day transfer time, but not good enough to beat Wordpay’s 30-minute transfers.

Lastly, takepayments 18 months contract is on the long side, on par with Worldpay. In fact, it’s the longest contract length allowed by the latest Payment Systems Regulator ruling. If that puts you off, you might want to go with one of the zero-contract merchant accounts we have listed.

2. Retail Merchant Services

Like takepayments, Retail Merchant Services has a great selection of reporting tools. These include real-time data insights and staff monitoring, but this merchant account provider shoots ahead of the competition with advanced features like wastage monitoring, and inter-location stock transfer.

In-person card processing fees are bespoke, as is the case with most contract-based merchant accounts, although Retail Merchant Services has an impressive 0.79% +10p online transaction fee, the cheapest online rate we’ve seen. This makes it one of the best payment gateways for online selling.

However, it’s worth noting that Retail Merchant Services is the only merchant account provider we researched that isn’t Payment Card Industry (PCI) compliant, which means the provider doesn’t take industry-standard procedures to keep data safe. It also means that, for the security of your business, you’ll have to undertake these procedures by yourself.

Furthermore, it’s only got one ready-made integration with CounterPay, which means it’s not a great option for businesses that are heavy on software. Quite unusually, Retail Merchant Services also only offers support over the phone, and not by email or live chat, limiting some of your contact methods. This is a far cry from Zettle’s and Worldpay’s immaculate phone, live chat and email support offering.

How does Retail Merchant Services compare to its competitors?

Retail Merchant Services’ starting monthly fee of £10 + VAT is cheaper than Worldpay’s £15 and takepayments’ £20 + VAT. Once again, these are representative figures based on previous quotes. Contact each provider for an exact figure.

Its in-person transaction fees are bespoke, like with takepayments and Wordpay, however they can get as low as 0.4%, beating Worldpay’s low of 0.6%. All this makes it one of the cheapest ways to take card payments we looked into.

Retail Merchant Services’ multi-currency support is impressive, accepting 140 currencies, a few more than Wordpay’s 120, and with no need for API, unlike takepayments.

When it comes to fund transfer times, Retail Merchant Services is a little slow, taking 3-5 businesses days, much longer than takepayments next day payouts, and Worldpay’s 30 minute ones. It is possible, however, to get faster payouts with Retail Merchant Services with its ‘Same Day Settlement’ program. Restrictions do apply, and its dependent on your bank.

When it comes to contract lengths, Retail Merchant Services fairs better than its competitors, takepayments and Worldpay. It settles on a contract length with you instead of imposing one on you.

3. Worldpay

Worldpay, like takepayments and Retail Merchant Services, has bespoke transaction fees, as in our experience is a good value option for businesses of any size. Plus, it has a quick price generation tool, which can give estimates on what you’ll be paying each month, something neither of its competitors have.

A small business can expect processing fees of 0.6%-2.6%, depending on the type of card and payment method, which is a pretty good deal from a contract-based merchant account.

Plus, Worldpay has some excellent fraud prevention features, to ensure you don’t lose a penny of what you earn. These are add-on solutions, giving you the flexibility to choose the type of fraud prevention you want. We’d recommend Wordpay’s FraudSight, which uses the latest technology and can be tailored to your business’s needs.

Worldpay isn’t without it faults, however. At 18 months, like takepayments, it has the longest contract time among the card machine providers we looked into. A lot of services and features, such as access to reporting and PCI compliance, also come at an added cost, which might offset the benefits of having cheap transaction fees.

How does Worldpay compare to its competitors?

At £15 + VAT, Worldpay’s starting monthly fee is cheaper than takepayments £20, but more expensive than Retail Merchant Services’s £10. None of these providers advertise their pricing, so these are representative figures based on previous quotes.

Since its in-person processing fees are bespoke, it’s difficult to directly compare them with competitors, although we have found that Retail Merchant Services tends to offer slightly cheaper rates. This is certainly true for online processing fees, where Worldpay charges 1.3% + 20p and Retail Merchant Services only charges 0.79% +10p.

Worldpay also falls short when it comes to reporting tools. You have to pay extra to get access to reports, unlike with takepayments and Retail Merchant Services, and you’ll mainly be able to view sales and transaction history.

When it comes to international currencies, Worldpay accepts 120+, a little less than Retail Merchant Services’s 140 and takepayments 170.

The Best Zero-Contract Merchant Account Providers in 2024

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. Zettle

Zero-contract merchant accounts tend to be a little light when it comes to reporting tools, but Zettle bucks that trend by giving you access to analytics, sales forecasting, inventory management, and even staff hour tracking. Along with its free EPOS app, which you can download from Apple and Google stores, Zettle is a great value entry-level merchant account.

It’s also got some robust security features. It’s fully PCI compliant, at no extra cost to you, has a tamper-proof card reader, and offers transaction protection of up to £250 in eligible chargebacks per month. That last one isn’t offered by the other zero-contract providers on this list.

All these free tools and features do come at the expense of low rates, since at 1.75%, Zettle’s transaction fees are on the high side, even for a zero-contract provider.

Since it sells its card readers outright, its hardware range is more limited than that of the contract-based providers on this list. It only has two card readers and only one with mobile data. Zettle is also missing a virtual terminal, for taking over-the-phone payments, something that you’re more or less guaranteed to have with old-school providers like takepayments and Worldpay.

How does Zettle compare to its competitors?

Zettle’s 1.75% transaction fee is the most expensive among the 11 providers we research, considerably higher than Revolut’s 0.8% + 2p, and the under 1% fees you’d get with contract-based providers like Retail Merchant Services.

Square also charges 1.75% per transaction, however, and offers similar features (including free EPOS software) as Zettle, so perhaps the high fees are justified.

Zettle’s costs aren’t all outrageous. At £29 + VAT, its cheapest card reader costs less than Revolut’s £49 reader. Square’s is the cheapest, however, with its basic reader costing £22.80 (including VAT).

Zettle’s payout time of up to two working days is quite decent. It’s better than Revolut’s 1-3 working day fund transfers, although again, Square has Zettle beat with next-day payouts.

None of the zero-contract merchant accounts on our list have monthly account fees, so in that category, at least, they are all fair and equal.

What do users think of Zettle?

Hannah Bailey, of the clothing shop Batch1, praised the Zettle card reader’s mobility: “If you have someone on the other side of the desk that’s chatting to you, you can quickly take a sale of someone who just wants to be in and out”. For her part, Jessica Bedoya, from womenswear boutique Sugar & Style, admired the ease of use with which Zettle could be operated: “If you do the wrong thing, you just swipe and delete it. It’s very user-friendly, very straightforward, especially for someone that’s new [to it]”.

2. Revolut

Besides its cheap transaction fees, all Revolut’s applications are PCI-compliant, at no extra cost to you.

Its sleek Revolut card reader also integrates with 16 third-party providers, including a host of accounting tools. Revolut also provides an online payment gateway, which you can integrate into an existing website or online store.

That said, Revolut doesn’t pack a lot of reporting tools. It will only let you track team and spend management, so if you’re a small business owner looking for the kind of data insights you need to really inform your decision-making, takepayments and Retail Merchant Services will serve you better.

Revolut is also the only merchant account we’ve researched that doesn’t have any fraud prevention system in place. This is a pretty major tool to be missing, so if you’re worried about fraud we’d recommend Worldpay or Zettle over Revolut.

How does Revolut compare to its competitors?

Revolut’s 0.8% + 2p in-person transaction fee is much cheaper than its mobile card reader competitors, with Zettle and Square both charging 1.75% per transaction. Fees for selling online are also cheaper with Revolut, at 1% + 20p, compared to Zettle and Square’s fees of 2.5% or more.

Like the latter two providers, it doesn’t charge monthly fees, unlike Worldpay and Retail Merchant Services, which charge a minimum of £15 + VAT and £10 + VAT, respectively (representative figures, contact provider for quote).

When it comes to multi-currency support, Revolut supports 30 currencies, which is more than Zettle’s 25, and Square doesn’t even accept international payments. If you’re an international business owner, you should check if Revolut’s list of accepted currencies covers your needs.

Revolut’s reporting features are quite limited when compared to close competitors Square and Zettle’s, and it only has one hardware option, the Revolut reader. Zettle and Square both sell two types readers, and full till kits.

3. Square

Square has become a popular payment solution for small businesses, thanks to its host of free tools. Not only can you accept payments through Square, you can also create an online store, and use its EPOS software entirely for free.

All three products can also be accessed from the same platform, making it easy to track and manage sales.

And, unlike Revolut, Square allows room for growth, allowing you to upgrade both your EPOS system and online store (for a monthly fee) to get access to advanced reporting and management features.

No merchant account is perfect however. Square has high transaction fees (1.75% in-person), with no chance to lower them, even if you start paying a monthly fee. It also doesn’t support international payments, making it a no-go for cross-border selling.

How does Square Payments compare to its competitors?

Square is better equipped to serve online businesses than Revolut or Zettle, since it has a unified platform for tracking in-person an online sales. Both its competitors can be used as online payment gateways, but the experience won’t be as smooth.

At £22.80, Square’s cheapest reader is cheaper than both Revolut’s (£49+ VAT) and Zettle’s (£29 + VAT) . However, Revolut has a lower transaction fees, charging 0.8% + 2p for in-person transactions, against Square’s 1.75%. Zettle’s processing fees, however are the same as Square’s.

Square also has the fastest payout time of all the zero-contract providers on this list, issuing next-day payouts. Zettle and Revolut both take a few days to transfer funds.

However, since Square doesn’t support multi-currency, you’ll be better off charging international customer with Zettle or Revolut, which support 25 and 30 currencies respectively.

What do users think of it?

Katie Dutton, of The Great Frog jewellery shop in London, said she was impressed by how easy the Square Reader is to use. “The interface is really clear. There’s nothing really confusing about it. I’ve got used to till systems, but this was way easier than the ones I’ve used before.”

How Do I Choose a Merchant Account?

When choosing a payment processor, you should consider your budget and the size of your business, as well as how well your card machine company suits your needs.

Zero-contract providers are a cheap way to take card payments for startups and very small businesses, but they can also work for businesses that process a moderate amount of card payments, or simply want to test out a merchant account without any obligations. Either way, providers such as Zettle can provide a great way to get started without a hefty initial investment or fixed monthly fees.

Contract-based merchant accounts are better for medium-sized or larger businesses, which are more established businesses. Companies this size are unlikely to have their bank broken by monthly fees, but they’re still able to benefit from its low transaction fees, effectively offsetting the fixed costs over time.

Reporting tools and third-party integrations should also be taken into account when choosing a merchant account and payment facilitator. These are particularly helpful to small businesses owners, as they can provide data that informs their growth plans.

And the great news is, these tools aren’t reserved for businesses who use contract-based providers like takepayaments’. Zero-contract options like Zettle and Square can provide you with similar reports and integration.

Our Methodology

To provide this wide comparison between payment-taking systems, we researched 11 providers, and ranked them across four differently weighted categories, to give them an overall score.

These include:

• Price: we looked at account charges and transaction fees, comparing them to competitor prices and features to determine if providers offered good value for money.
• Features: we looked at the variety of payment options offered by the provider, and whether they possessed key features for running a business, such as reporting tools and integrations with other platforms.
• Compliance: we looked at the measures the provider had in place to protect businesses from fraud and help them stay PCI compliant.
• Customer support: we looked at the number of support channels the provider had, as well as the opening hours of their support team.
• General reputation: though only a small factor in the overall score, we looked at what everyday customer and industry experts thought of each provider, to bring greater nuance to our assessment.

Ultimately, we compared these companies with each other to highlight their strengths and weaknesses.