It should be pretty easy; someone wants your product, they pay you money, you receive the money, and deposit it in your account. For many small business owners, however, figuring out how to accept payments online can feel like a maze of options, providers, and technical mumbo jumbo that can cause some to crawl into a fetal position and cry. In the world of online payments, the acceptance part is key, and learning how to accept online payments securely and efficiently is paramount.
This guide breaks down how to accept payments online for your UK business, including step-by-step advice, platform comparisons, and tips to keep your costs and risks under control.
Why accepting online payments matters for UK businesses
Consumer habits in the UK have shifted decisively toward digital, with over 80% of UK adults now shopping online. These shoppers need to be able to pay for their products and services online, and most people will be expecting fast, secure digital payment options that are both easy to use and secure.
The world is becoming more and more digital, and thus, in order to compete in the digital marketplace, your payment options should be on point. If your business can’t process digital transactions correctly, you risk losing customers to providers who can. Plus, offering online payments makes it easier to manage recurring billing, reduce late payments, and improve cash flow transparency.
How to accept payments online and which methods to use
When setting up online payments, the best method for your business isn’t a one-size-fits-all solution. It depends on your size, industry, customer journey, and how much control you want over the checkout process. Below are the most widely used online payment methods in the UK, along with real-world examples for each:
1. Payment gateways
A payment gateway is the technology that authorises and processes card payments on your website; think of it as the virtual version of a card terminal. When a customer enters their debit or credit card details, the gateway securely transmits the data to the payment processor and returns a confirmation in seconds. The payment gateway is the one that ensures the security of the transaction.
Gateways are ideal for businesses with their own websites that want a secure, fast checkout process. Most modern providers offer plug-and-play integrations with minimal setup, and some of the most popular are listed below.
💡 Examples of payment gateways:
- Stripe: Popular among startups, developers, and SaaS companies due to its flexible API.
- Worldpay: A long-standing UK provider trusted by larger retailers and established SMEs.
- Opayo (formerly Sage Pay): Common among accountants and traditional SMEs, especially those using Sage accounting products.
2. Online invoicing platforms
Rather than attempting and many times failing at creating your own .pdf invoices, or telling customers to just send payment without an invoice or manually, invoicing platforms let you generate professional invoices. They also come with embedded payment links! Customers can pay directly with a card, bank transfer, or through services like Apple Pay. Some examples are listed below.
💡 Examples of invoicing platforms
- iwocaPay: Designed specifically for UK small businesses, iwocaPay stands out by letting customers pay upfront or spread the cost over 90 days, while you get paid in full immediately. This makes it ideal for B2B companies who want to improve cash flow without chasing invoices or handling credit themselves.
- Xero: Offers invoice templates and lets clients pay online via connected payment services, such as Stripe or GoCardless. Works well for businesses already using Xero for accounting.
- QuickBooks Online: Lets businesses add a “Pay Now” button to invoices with options like PayPal or direct debit. Suited to SMEs looking to combine invoicing and accounting in one platform.
3. E-commerce integrations
If you’re running an online shop, using a dedicated e-commerce platform with built-in payment support is often the most efficient choice. These platforms handle inventory, checkout, shipping, and tax, all in one dashboard; pretty much an all of the above type of solution.
Many platforms integrate directly with global and UK-based payment providers, giving you flexibility over how you charge and what methods you accept.
💡 Examples of e-commerce platfrom integration:
- Shopify UK: Comes with Shopify Payments (powered by Stripe) and supports Klarna, PayPal, and others.
- WooCommerce: A WordPress plugin that works with Stripe, PayPal, Square, and Mollie for UK businesses.
- BigCommerce or Wix eCommerce: These tools include payment integrations and are ideal for smaller online stores with visual templates.
4. Mobile payment links
Mobile payment links allow you to generate a custom payment URL that can be sent via SMS, WhatsApp, or email. When the customer clicks the link, they’re taken to a secure page to enter their card details and complete the transaction. Remember that security is paramount, and many times, payment links can be part of scams, so be vigilant. This method works well for businesses that are more mobile, such as food delivery, trades, or independent consultants.
💡 Examples of mobile payment link services:
- SumUp: Offers “payment links” you can send instantly and track in the app, great for mobile workers or small vendors.
- Square: Also allows for quick invoice or payment link generation, even without a website.
- Zettle by PayPal: Popular among sole traders for sending quick links or QR codes to pay on the spot.
5. Embedded checkouts
For larger or more technically advanced businesses, embedded checkout experiences provide the most control. Rather than redirecting customers to a third-party payment page, you can build the payment form directly into your site, giving it a seamless, branded feel. This method is best for high-volume e-commerce businesses or platforms offering a customised user experience.
💡 Examples:
- Stripe Elements API: Allows full control over the checkout UI while remaining PCI compliant.
- Checkout.com: A growing UK-based provider that supports global payments and embedded checkout flows.
- Adyen: Used by larger UK retailers and marketplaces like Deliveroo or Spotify, offering fully integrated, scalable payment experiences.
How to accept credit card payments online securely
Accepting card payments online means protecting both your business and your customers. UK businesses must comply with PCI DSS (Payment Card Industry Data Security Standard), which governs how cardholder data is handled.
Non-compliance can lead to fines, chargebacks, or suspended accounts. But with the right setup, staying secure is straightforward.
Here’s what you need to do:
- Use a PCI-compliant provider: Choose certified platforms like iwocaPay, Stripe, Square, or PayPal that handle sensitive data for you.
- Secure your website with HTTPS: A valid SSL certificate encrypts customer data and signals trust with a padlock icon in the browser.
- Don’t store card data: Unless you’re a regulated enterprise, avoid storing payment info, use hosted checkouts or secure APIs instead.
- Enable 3D Secure and SCA: Under UK regulations, you must use Strong Customer Authentication. iwocaPay and Stripe support this by default.
Modern gateways take care of most compliance needs. Tools like iwocaPay offer fraud detection, encryption, and hosted checkouts, making it easier to stay secure without extra admin.
How to accept card payments on your website, step by step
Setting up online card payments can be done in just a few steps. Here’s how to get started:
| Step | What to Do | Why It Matters |
|---|---|---|
| Step 1: Choose a payment provider | Select a provider based on your business size, budget, and preferred payment methods (Visa, Mastercard, Apple Pay, etc.). | Ensures your system fits customer expectations and operational needs. |
| Step 2: Set up a merchant account or payment service | Use a dedicated merchant account (like Worldpay) or a simpler all-in-one provider (like Stripe, PayPal, or iwocaPay). | Determines your fee structure and onboarding complexity. |
| Step 3: Connect your website | Install plugins or embed code to integrate your provider with your site. Most e-commerce platforms support this natively. | Makes it easy for customers to pay without technical issues. |
| Step 4: Enable payment methods and test | Choose which payment types to accept and test your full checkout flow before going live. | Reduces friction and prevents failed payments at launch. |
| Step 5: Go live and monitor transactions | Launch payments, track transactions, and review customer feedback and fee performance regularly. | Helps you optimise for better conversion and cost control. |
Can you accept online payments without a merchant account?
Yes, many UK businesses use all-in-one providers like iwocaPay, Stripe, or PayPal that don’t require a separate merchant account. These “payment facilitators” handle processing under their own license, making setup faster and easier.
It’s a simple, low-barrier option ideal for sole traders, freelancers, and SMEs, though transaction fees may be slightly higher than with traditional merchant accounts.
Can you accept online payments for free?
Technically, yes. Some platforms let you pass fees to customers and charge no monthly costs. But in practice, most UK businesses absorb transaction fees as part of doing business.
iwocaPay offers a rare advantage: your customers can pay in instalments, while you get paid upfront and in full, without losing a percentage to fees.
Understanding costs and how to accept credit card payments online for free
Accepting credit card payments online usually comes with transaction fees, but the actual cost depends on which provider you choose, how you structure your payments, and whether you pass those costs on to customers.
While most modern platforms offer free setup and no monthly fees, they typically charge a small percentage per transaction. That might not seem like much, but over time it can add up, especially for businesses operating on tight margins or high volume.
Typical online payment fees to watch for:
| Cost Type | Typical Range | Notes |
|---|---|---|
| Transaction fee | 1.4%–2.9% + 20–30p | Varies by provider, card type, and currency |
| Monthly fee | £0–£25 | Some platforms charge subscriptions for advanced features |
| Chargeback fee | £10–£25 | Applies if a customer disputes a payment and wins |
| Set-up cost | Often free | Most cloud-based providers don’t charge to start |
How much do these fees actually impact your revenue?
Let’s look at two examples, a £500 payment and a £2,000 invoice, to see how common platforms compare.
This chart compares how much your business receives from a £500 transaction using different online payment platforms. While traditional processors deduct fees, iwocaPay lets you keep the full amount, because the customer pays in instalments, and you get paid in full upfront.
Larger transactions magnify the cost of processing fees. This chart shows how different providers affect your revenue on a £2,000 payment. iwocaPay again stands out by delivering 100% of the funds to your account immediately, no percentage cut taken.
Note: iwocaPay allows your customer to pay upfront or over 90 days, interest-free. You get paid immediately in full, with no transaction fee taken from your side.
How online payments integrate with accounting and cash flow management
Getting paid online is only half the job. The other half is making sure those payments flow cleanly into your accounting system. Fortunately, many modern payment solutions integrate directly with platforms like Xero, QuickBooks, and FreeAgent.
💡 Here’s how these integrations help:
- Automated reconciliation – match payments to invoices without manual data entry
- Real-time cash flow visibility – see incoming funds as soon as they’re received
- Faster invoicing and reminders – automatically trigger reminders when invoices go unpaid
- Tax-ready records – easily prepare VAT returns and audit trails
How to choose the best way to accept online payments for your business
The best payment method really depends on how your business runs; what you sell, who your customers are, and whether you care more about speed, flexibility, lower fees, or cutting down admin work. If you’re selling products online, sending invoices for services, or setting up recurring billing or deposits, those details shape what will work best. Some businesses need fast access to funds, while others focus more on reducing fees, avoiding chargebacks, or finding a solution that plugs right into their existing systems.
Here’s a quick comparison to help narrow things down:
| Provider | Best for | Monthly Fee | Typical Transaction Fee |
|---|---|---|---|
| Stripe | E-commerce and developers | None | 1.4% + 20p (UK cards) |
| PayPal | Freelancers and international | None | 2.9% + 30p |
| iwocaPay | B2B invoices with upfront cash | None | Customer pays (or you can absorb) |
| Square | Mobile services and shops | None | 1.75% (online) |
FAQ
Can you accept online payments without a merchant account?
Yes. Many UK businesses use all-in-one payment providers like Stripe, PayPal, Square, or iwocaPay that don’t require a separate merchant account. These services handle the backend processing and transfer funds directly to your business bank account.
Is it safe to accept credit card payments online?
Yes, provided you use a PCI-compliant payment provider and secure your website with HTTPS encryption. Most modern platforms also include fraud protection tools and Strong Customer Authentication (SCA) measures to protect both you and your customers.
How much does it cost to accept online payments?
Costs vary depending on the provider and payment type. Transaction fees typically range from 1.4% to 2.9% plus 20–30p per payment. Some platforms charge monthly fees, while others operate on a pay-as-you-go model with no fixed costs.
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