How to Take Card Payments Online: UK Small Business Guide
Learning how to take card payments online is simpler than most small business owners expect, and you do not necessarily need a website to do it. There are three main routes in the UK, each with different costs and setup effort. This guide walks through all three so you can pick the one that fits how you actually sell.
How do you take card payments online?
There are three routes: add a payment gateway to a website checkout, send payment links with no website at all, or add card payment buttons to your invoices through your invoicing software. Most small businesses start with links or invoicing and add a full checkout when the volume justifies it.
All three run on the same underlying technology, a payment gateway, which securely carries the customer's card details to the banking system. The difference is simply where the customer meets it: on your site, in a message, or on an invoice.
What do you need to get started?
At minimum: a business bank account, your business details for verification, and an account with a payment provider. You do not need your own merchant account, a website, or any hardware to take your first online payment.
Providers verify your identity and business under anti-money-laundering rules, which usually takes minutes to a day. Whether you eventually want your own merchant account depends on volume; the trade-offs are covered in what is a merchant account.
How much does it cost to take card payments online?
Expect between around 1.4% and 2.9% plus 20p to 30p per transaction on pay-as-you-go plans, with no monthly fee. A £50 sale therefore costs roughly 90p to £1.75 to process, depending on the provider and card type.
| Route | Typical cost | Setup effort | Best for |
|---|---|---|---|
| Website checkout (gateway) | Around 1.4% to 2.9% + 20p to 30p | Moderate, platform dependent | Online shops with steady sales |
| Payment links and QR codes | Around 1.4% to 2.9% | Minutes | Selling without a website, deposits |
| Invoice payments | Card around 1.4% to 2.9%, or Direct Debit around 1% capped | Minutes inside your software | Service businesses and B2B |
Online rates sit above in-person rates because the card is not present. That is normal, but it does not mean any rate is fine: the gap between providers on the same sale is real money at volume, as the comparison in best payment gateway UK shows.
Do you need a website to take payments online?
No. Payment links and QR codes give you a secure, provider-hosted payment page you can send by text, email or WhatsApp, with no website involved. For many trades, freelancers and appointment businesses, links are the entire online setup.
The full picture, including recurring links for subscriptions and printed QR codes for counters and vans, is in pay by link and QR code payments explained. And if customers pay you over the phone rather than remotely, a virtual terminal covers that gap with no hardware either.
How do online fees compare to in-person fees?
In-person payments are cheaper: on good custom pricing, debit starts from around 0.35% and consumer credit from around 0.65%, against roughly 1.4% to 2.9% online. If you sell both ways, judge providers on the blended monthly cost, not the headline rate for either channel.
Card-not-present payments also carry more dispute risk, so build good habits early: clear billing descriptors, tracked delivery and prompt refunds. Our guide to chargebacks explains why those habits pay for themselves.
How do you choose the right setup?
Match the route to how you sell: a checkout if customers browse and buy, links if you agree sales personally, invoice payments if you bill for work. Then compare two or three providers on the real monthly cost at your volume, settlement speed, and whether the tools you will want next, like recurring billing, are included.
Avoid over-building. A tradesperson does not need an ecommerce checkout, and an online shop should not be running its sales through one-off links. Start with the simplest route that fits, and upgrade when the numbers say so; if fees start creeping as you grow, how to lower your card processing fees covers the fix.
Selling online and in person?
Send us a recent statement and we will show you your true blended cost across every channel, and whether a better setup exists for your volume.
Get your free statement reviewFrequently asked questions
What is the cheapest way to take card payments online?
For most small businesses, a pay-as-you-go provider with no monthly fee is cheapest at low volume, typically around 1.4 percent to 1.5 percent plus twenty to twenty-five pence per UK card transaction. For recurring invoices, Direct Debit at around one percent capped often beats cards.
Can I take online payments as a sole trader?
Yes. Sole traders can open accounts with all the major providers using their personal identity and business details. A separate business bank account makes verification and bookkeeping much smoother.
How quickly will I receive the money?
Typically one to three working days after the transaction, with some providers offering next-day settlement. Check whether payouts arrive gross or net of fees so your bank statement matches your sales records.
Do I need a merchant account to sell online?
No. Payment facilitators process your sales under their own merchant account, which is how most small businesses start. A dedicated merchant account becomes worth considering once monthly card volume grows past a few thousand pounds.
Is it safe to take card payments online?
Yes, provided you use a PCI DSS compliant provider with a hosted payment page, so card details never touch your own systems. Strong customer authentication is applied automatically on UK online payments.
Can customers pay by Apple Pay and Google Pay online?
Yes. Most UK gateways and payment links support digital wallets, and enabling them measurably improves completion rates because customers skip typing card details.
What about taking payments over the phone?
Phone payments use a virtual terminal, where you key the card details into a secure page while the customer is on the call. Rates are a little higher than standard online payments because the risk is higher, but no hardware is needed.
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