How to choose a payment processing provider for your business

The right choice can help you grow your business. This guide will help you understand what to look for.

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Jason Loewenthal

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Deciding which payment processing provider to use is an important decision to make for your business. It can have an impact on your sales conversion rates, customer check-out experience, cash flow and financial security.

There are many options available and selecting the wrong one could mean you’re spending more on fees than you need to or integrate badly with your existing set-up.

This guide looks at what you need to think about, how to understand pricing structures and everything else you need to compare so you can choose the best payment provider for your business.

8 things to consider when choosing a business payment processing provider

  1. Fees
  2. Ease of use
  3. Integrations
  4. Contract length
  5. Security
  6. Customer support
  7. Reviews
  8. Rewards

1. What fees do payment processors charge?

This is where you need to choose a pricing structure that aligns with your business. There are many different types of fees, including transaction fees, monthly fees, forex fees and in some cases chargeback fees. Typically, a plan that charges no monthly fee will mean a higher transaction fee, which can be useful for a business with lower turnover.

A plan with a monthly fee is likely to charge lower transaction fees. Choosing a provider that has multiple plan options could be a good idea so you can change as your business grows. Providers that do that include SumUp and Square.

2. Which payment processing systems are easiest to use?

Time is money in business and choosing a system that is easy to use can save you both. You should look at a provider that has a simple interface for customers and an intuitive back-end dashboard for staff to handle refunds and track sales. Square and SumUp offer the simplest setups for UK small businesses, featuring plug-and-play mobile card readers and intuitive smartphone POS apps that require no technical setup.

3. How do payment processors integrate with EPOS, accounting tools, and business bank accounts?

Look for a provider that allows you to connect with any software you already use, such as your existing e-commerce platform, POS hardware, inventory software, accounting tools and bank account.

Providers including SumUp and Tide actually have their own bank accounts as well, making it easy to integrate if you want the same business banking and payment processing provider. This can also be very handy when you’re starting a business in terms of separating business spend and personal spend.

4. Is the provider flexible or does it lock you into a long-term contract?

Long-term contracts might save you money over the whole term, but you’ll lose flexibility if you lock yourself in. They can come with early termination penalties or automatic renewal clauses, so make sure you’re aware of them before you make a decision.

If you don’t want to lock yourself in, look for flexible providers, such as SumUp and Stripe. Conversely, if you are comfortable with a contract over a longer period of time, then by choosing a provider like SumUp, you can save money by choosing its Payments Plus plan yearly instead of monthly. Paying monthly is £19 a month, while paying yearly costs £189, which is £15.75 a month.

5. What security and fraud prevention features should your payment processor include?

PCI DSS (Payment Card Industry Data Security Standard) compliance is a set of global security requirements for any UK business that accepts, processes, stores or transmits credit or debit card data. All providers are required to comply with PCI DSS and data encryption and tokenisation to protect card details.

You can look at what each provider offers in terms of security on top of the minimum requirements, because some have higher levels than others.

6. Which payment processors offer 24/7 customer support?

If you have a technical issue, having access to customer support that can help you resolve it as quickly as possible can be key for your business. You should look at providers that offer responsive support channels that are at least available during business hours by phone or live chat. This will ensure any technical outages or payment holds can be sorted out without too much fuss.

Worldpay and Stripe provide 24/7 technical phone and online support in the UK, while providers like SumUp, Square, and Tide operate customer service during standard business hours.

7. How do the leading UK payment processors compare on Trustpilot and app ratings?

You can get an idea of other people’s experiences with business payment processing providers by looking at online reviews. Trustpilot is a good place to start and looking at ratings on phone app stores is also useful, because it shows what other customers think of the apps. You’re going to be using these apps a lot, so one that has issues could be a red flag.

ProviderTrustpilot ratingApple App store ratingGoogle Play Store rating
SumUp4.2/5 (58,000+ reviews)4.6/5 (14,000+ reviews)4.8/5 (144,000+ reviews)
Square3.9/5 (3,700+ reviews)4.8/5 (13,000+ reviews)4.5/5 (260,000+ reviews)
Paypal (Zettle)3.4/5 (5,700+ reviews)4.6/5 (11,000+ reviews)3.3/5 (43,000+ reviews)
Ratings sourced from Trustpilot, the Apple App Store and Google Play Store in October 2026.

8. Does the payment processor offer closed-loop discounts or customer reward schemes?

Some modern payment providers operate two-sided “closed-loop” networks that waive transaction fees entirely when a customer pays using that provider’s own consumer card or digital wallet.

A leading UK example is SumUp’s Zero-Fee scheme. When a customer pays using a personal SumUp card, the merchant is charged a 0% transaction fee, instead of paying the standard 1.69% fee. The customer can then earn up to 5% cashback when spending at independent businesses in the SumUp merchant network, incentivising repeat purchases.

Revolut Business offers similar advantages, reducing transaction rates to around 1% when customers check out using Revolut Pay.

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Case study: Ian chose SumUp to run the bar at his local cricket club

"We chose SumUp for our cricket club bar because we wanted something straightforward for taking payments, whilst also offering transparent pricing.

The SumUp Solo is smaller than a lot of card machines, which is handy behind the bar when space is limited. It’s easy to use, and charging it is quick and simple, so we can get it ready without much fuss.

We also wanted a payment option that made sense for a club bar, where sales can vary depending on matches and events. Having a compact, easy-to-use reader helps us keep things running smoothly when members and visitors come in for a drink."

Ian Harrington
Bar Manager at Clevedon Cricket Club

How to compare payment processing providers for your business

When you’re making a decision on the right provider, it’s important to work out what you should look for and what you should avoid. We’ve put some of these things in a table to help you.

FeatureWhat to look forWhat to avoid
FeesTransparent, flexible pricingComplex fee structures
Ease of useA platform that’s easy for customers and staffClunky and cluttered interfaces
IntegrationsA provider that lets you integrate with existing software, for example a provider that has its own business bank account, such as SumUp or TideLimited ability to integrate
Contract lengthFlexible contracts that don’t lock you inLong-term contracts with high early termination fees
SecurityPCI DSS compliance and fraud detection toolsProviders with limited information in these areas
Customer supportSupport being available when you’re likely to need itUncommunicative or limited hours
ReviewsGood scores across multiple review platformsRepetitive complaints about the same problems

How much do business payment processing devices cost?

One of the most important things to compare when choosing a business payment processing provider are the fees involved. Payment processing devices can range from affordable, one-off card readers to more expensive terminals with monthly fees and additional features.

The right option for your business will depend on your budget, how often you take payments and whether you need extras such as till integration or built-in reporting.

ProviderTransaction feesCheapest deviceNumber of devices available
SumUp1.69%£255
Square1.75%£195
Paypal (Zettle)1.75%£293
Tide1.5% + 5p£493
Stripe1.5% + 20p£493

Why should your business use a payment processing system?

Using a payment processing provider can save your business time and money, while also helping with organisation. Some of the key benefits of using a payment processing system include:

  • Increased sales and higher conversion rates
  • A wider range of payment options
  • More efficiency and automation in your operations
  • Preventing fraud and enhanced security
  • Regulatory compliance
  • Financial insights and reporting
  • Integration with other software to streamline your operation
  • Faster cash flow
  • Streamlined accounting

Bottom line

Choosing the right business payment processing provider for your business will come down to a number of factors. It’s important to compare your options to find the most suitable one for you.

A provider with transparent pricing, flexible contracts, multiple payment options and good customer support can help you to build your business.

Frequently asked questions

What is a payment processing provider?

A payment processing provider is a company that operates the infrastructure that businesses need to accept electronic payments.

What hidden or additional fees should I look out for?

Hidden fees include chargebacks, PCI compliance fees, statement fees, terminal rental fees and minimum monthly charges. To avoid getting stung for hidden charges, you should look for a provider with a transparent fee structure, such as SumUp.

What happens if I process payments in multiple currencies or countries?

This will depend on the provider. Some providers will accept these payments but some won’t. If a company does accept payment, you need to determine if there’s going to be an additional fee for doing so.

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.

How long does it take for payment processors to deposit funds into a bank account?

Every provider is different. PayPal makes funds instantly available in your payment account, but it can take longer to then send that to your bank account. A provider like SumUp lets you access funds the next day if you also have a SumUp bank account.

For other providers, you should expect to see the money in your account within 3 days. If speed is important to you, then choose a provider that gives you access quickly.

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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