The best payment processing systems for small businesses

The right system can save you time and money. We’ve compiled a list of the best payment processing systems in the UK, with tips on choosing the right one for your business.

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Jason Loewenthal

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Finding the best payment solutions for small businesses will depend on a range of factors, so you’ll need to make a decision based on what you require for your business when you’re looking.

You should consider factors including fees and costs, how well a provider might integrate with your existing set-up, how easy it is to use and if there are any advanced features that could help you.

Which are the best payment processing systems for small businesses in 2026?

  • Best overall platform: SumUp
  • Best for POS features: Square
  • Best for instant payouts: Paypal (Zettle)
  • Best for business banking integrations: Tide
  • Best for high-turnover businesses: Worldpay

Best overall platform

SumUp image
9.2Excellent
SumUp
9.2Excellent
1.69%
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Why we like it

In terms of plans, you can opt to have no monthly fee or choose a plan with a monthly fee that means lower transaction costs. This means you can decide which option is best for your business and change plans as you scale. Whatever you choose, the pricing structure is transparent.

SumUp offers a range of different devices and they all come with a 30-day money-back guarantee, which isn’t something all its competitors offer. These products are easy to set up, use and integrate with other parts of your business. Speaking of integration, if you get a SumUp business account, you'll get next-day access (including weekends and public holidays) to any payments you receive from a card reader.

You can also accept payments via Apple Pay, Google Pay, payment links and QR codes, giving your customers options, with funds also available the next day (including weekends and public holidays) in your SumUp Business Account.

Beyond standalone card readers, SumUp also offers point-of-sale (POS) solutions, including a free POS app with basic inventory tools, as well as dedicated countertop touchscreen setups like the SumUp Register.

It has strong reviews across Trustpilot, the Apple App Store and Google Play Store, which shows its users are happy with the products it offers.

And a final note, it’s a UK company, when most other providers in this space are based overseas.

Pros

  • Can choose a plan with no monthly cost or a plan with a monthly cost and lower fees
  • UK company
  • Strong reviews across Trustpilot, App Store and Google Play
  • 30-day money-back guarantee
  • No contract
  • Next-day payouts (including weekends and public holidays) with SumUp Business Account
  • Point-of-sale (POS) software and hardware options available
  • Can also pay with payment links or QR codes
  • Works with Apple Pay and Google Pay
  • Integrates easily with accounting software such as Xero and QuickBooks
  • Range of devices

Cons

  • Chargeback cost
  • Payouts take up to 3 days when transferred to an external business account

Best for POS features

Square image
8.8Great
Square
8.8Great
1.75%
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Why we like it

Square is the most complete in terms of point-of-sale (POS) features. Its ecosystem works well for a wide range of businesses, including retail, food services and multi-channel businesses. It has a free POS app that has inventory, team management and CRM tools.

Payments are settled in a day and there’s no chargeback cost, giving you some certainty around cash flow. Square has a range of different devices and no monthly fees on its plan.

Pros

  • Zero chargeback fees and transparent flat-rate pricing
  • Unified stock management across in-person and online channels

Cons

  • Higher in-person rate compared to some other high-volume providers
  • Strict automated risk screening can lead to occasional account holds on unexpected transaction spikes
  • Surcharges for non-UK cards

Best for instant payouts

Paypal (Zettle) image
7.7Great
Paypal (Zettle)
7.7Great
1.75%
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Why we like it

We like PayPal best for its instant payouts. This can be really beneficial for a business to maintain cash flow, especially when you’re a small business. Having that certainty of the money being available immediately after a sale is a big plus. PayPal is a global brand and its offering in this space is what you would expect for a company of its size and reputation.

Pros

  • One Touch PayPal and Pay in 3 (BNPL) can help with online sales
  • Funds are immediately accessible in your PayPal balance
  • Integrates well with e-commerce platforms

Cons

  • Complex fee structure
  • Cross-border and currency conversion fees can be high
  • Only 2 different device options

Best for business banking integrations

Tide image
8.1Great
Tide
8.1Great
1.5% + 5p
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Why we like it

Tide allows for direct integration with a UK business current account, meaning you can keep banking and payment processing in a single platform. You can then reconcile payments and invoices automatically with accounting software. Opening an account with Tide is quick and relatively simple.

Tide has good reviews on Trustpilot, the Apple App Store and Google Play Store, highlighting that customers who have used its products are very happy with the service.

Pros

  • You can reconcile payments and invoice statuses automatically with accounting software, such as Xero or QuickBooks
  • Banking and payment processing in a single platform
  • Fast account opening

Cons

  • Fewer advanced retail/e-commerce tools
  • Standard free accounts charge per bank transfer after a low monthly allowance
  • Limited hardware options compared to other providers

Best for high-turnover businesses

Worldpay image
7.9Great
Worldpay
7.9Great
1.5%
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Why we like it

Worldpay is our pick for businesses with high turnover, because it allows businesses to negotiate custom pricing. It has dedicated account management and different tier levels of support.

It can be particularly useful if you have a complex set-up, need to settle accounts in multiple currencies or need specialised hardware.

Pros

  • Can offer significantly lower effective processing rates for turnover over £100,000 per year
  • Supports complex omnichannel terminal set-ups, multi-currency settlement and specialised hardware
  • Dedicated account management

Cons

  • Can have long-term contracts with early termination penalties
  • Fee structure isn’t transparent
  • Onboarding and software set-up can be outdated
  • App store ratings are poor
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How to choose the right business payment processing provider

You should follow these steps when you’re looking for the right payment processor for your business:

  1. Work out your sales channels. You might need a payment processor for in-person sales, e-commerce or a combination of both. If you want low terminal fees, offline processing capability and reliable POS software, a provider like SumUp or Square could be suitable. For e-commerce, conversion rate tools, API flexibility, multi-currency support, and international payment methods are when you should look at PayPal and Stripe.
  2. Choose a pricing structure appropriate for your needs. As a general rule, if you have lower turnover then you should look for a provider with no monthly fees and low transaction costs. If your business grows and your turnover increases, then you might want to consider paying a monthly fee in exchange for lower transaction costs. Once your turnover reaches a higher level then you should think about a provider that has custom pricing. SumUp, for example, lets you choose all of those options.
  3. Evaluate operational factors like scalability and integrations. For each provider you compare, you’ll need to make sure you understand settlement speed and cash flow, how software and hardware integrations work, if there are any hidden contract terms or fees and how a provider deals with unexpected spikes in sales. If you plan to scale up in the next couple of years, look at how a provider handles multi-currency processing, international payments or other local payment methods.

What are the pros and cons of using a business payment processing system?

Pros

  • You can increase revenue and conversion rates with the right platform. This is because cash is being used less than in the past, so having the option to pay by card or digital wallet is crucial. In terms of online sales, if you offer fast payment options it can reduce the chances of someone abandoning a purchase.
  • The right business payment processing system can help you streamline your operations and accounting, especially if you can sync to accounting software.
  • Fraud protection and security can be enhanced, giving you more protection.
  • Some business payment processing providers come with advanced features that go beyond basic card processing. This could include recurring subscription billing, instant digital invoicing, BNPL integrations and detailed sales analytics.

Cons

  • Some providers use automated risk algorithms, so unexpected spikes in transaction size or rapid volume growth can sometimes trigger sudden account holds, rolling reserves or frozen funds while your account is reviewed.
  • Physical card readers, POS terminals and online checkout systems need stable internet, phone signal and power to work. If there’s an outage or failure with the hardware, your sales could be paused while the issue is fixed.
  • Chargeback costs can be issued automatically when a customer disputes a charge through their bank and you would then need to submit evidence to fight it.
  • If the pricing structure is overly complex, you might never understand exactly what you’re going to be charged. As a consequence, you could miss out on better options.

Bottom line

Choosing the best business payment processing for a small business will depend on what your business needs. If you can find a platform with a transparent fee structure that is easy to use, you can save yourself time and money.

Make sure you compare options and understand how a provider works before you decide or you could find yourself stuck using something that could be hindering your business.

Frequently asked questions

What is the best payment processing system for small businesses?

We chose SumUp as the best overall payment processing system for small businesses because it offers a wide range of user-friendly devices with low and transparent pricing, whilst also exhibiting impressive customer feedback scores – for example it's rated 4.2/5-stars on Trustpilot from over 50,000 reviews (October 2026).

Ultimately, every provider has its own strengths and weaknesses so you should compare your options to work out what is best for your business.

What is the cheapest way to accept card payments?

As a general rule, the cheapest way to accept card payments is to find a provider with no monthly fees that only charges you per transaction. Then it’s a matter of comparing providers with the lowest fees.

If your business has a higher volume of sales then you might want to consider other options that charge a monthly fee and lower transaction fees.

Which business payment processing company has the lowest fees?

Fees vary by provider and will depend on use. Some charge monthly fees and lower transaction fees, while others charge no monthly fees but transaction fees are higher. Of the providers on our list that have plans with no monthly fees and additional fees per transaction, SumUp charges the lowest transaction fee of 1.69%.

How long does it take to receive funds from payment processors?

This will depend on the payment processor and how your account is set up. PayPal gives you instant access to your funds in its digital wallet, while SumUp offers next-day access (including weekends and public holidays) with its free Business Account.

For most other payment processors (or when transferring funds to a standard external bank account), payouts typically take between 1 and 3 business days.

Which payment processing system is easiest to use?

If you run a small business, it’s likely you have a simple operation. A provider such as SumUp could be a good option in this case, because its hardware has a minimalist interface, making it easy to use if you’re not very technical.

Are there any hidden fees that you need to watch out for?

Yes, some providers have hidden fees or complex pricing structures, which can make it difficult to understand what you’re going to be paying. Look for a provider with transparent pricing so there are no surprises. SumUp is a good example of this.

What is the difference between a payment gateway and a payment processor?

Payment gateways are what the customer sees. They encrypt and transmit card data safely. Payment processors are the back-end technology, which is where communication with banks to authorise and settle transactions happens.

Which payment service is best for in-person payments?

This will depend on your business’s needs, but as a general rule, look for a provider that’s easy to set up and use, so you don’t need to learn a complicated new system. You don’t want to miss out on sales because the tech is too complex.

Our “Best for” picks highlight top options in specific categories based on our independent evaluation (see our full methodology), while “Promoted” tags indicate sponsored placements. Selected products may not suit everyone. We track selected market offers, which may not cover every product. Products are listed in no particular order unless specified, and inclusion or ordering may be influenced by popularity or commercial agreements. Most comparison table data is provided by Defaqto or sourced directly from providers. Always evaluate your own circumstances and consider independent advice before making major financial decisions.
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Jason is a writer and editor. He worked as a senior subeditor for Finder for 5 years and in that time became familiar with a wide range of financial products and services. Before that, he worked for Australian Associated Press. He has a BA from Macquarie University in Australia. Jason loves to help other people find new ways to save money. See full bio

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