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Best Payment Gateway UK 2026
Square for in-person and free online store with no code. GoCardless for recurring direct debit. Stripe for developer-led checkout and subscriptions.
Fees verified against provider websites, May 2026. Online rates shown for UK-issued cards.
BusinessExpert may earn a commission if you sign up through links on this page. Square and GoCardless are affiliate partners. Our editorial recommendations are based on verified pricing and features, not commission rates.
Fees verified against provider websites, May 2026. Stripe in-person rate applies to EEA-issued cards; non-EEA cards are higher. Worldpay rates are quote-based. Always confirm current terms before signing.
Best payment gateway picks by business type
Best for in-person and online: Square
Square handles card-present payments at 1.75% and online payments at 1.4% + 25p with the same account and inventory. You can be trading online within an hour without writing a line of code.
Square Online is a full e-commerce store that shares its product catalogue with the card reader, a genuine omnichannel setup at no extra charge.
GoCardless processes direct debit payments at 1% + 20p on the Standard plan. It is not a card gateway, customers pay via bank account, not card.
For subscriptions, memberships, and invoice collections, GoCardless’s variable direct debit outperforms card-based gateways on cost and failure rate.
It also handles one-off payments through Instant Bank Pay (now branded Pay by Bank), its open banking option. The customer approves a direct bank-to-bank transfer from their banking app and you get instant confirmation of funds, with no card network fees.
That makes it the cheaper route when you want a single bank payment rather than committing the customer to a recurring direct debit mandate.
Stripe is the standard for custom online checkout. Its API handles one-time payments, subscriptions, split payments, and marketplace flows. The documentation is the best in the industry. For a business with a developer and a specific checkout requirement, Stripe is the correct infrastructure choice.
Not ideal if: High-volume sellers who would benefit from Dojo or other negotiated per-transaction rates
Transaction fee1.75% flat (all cards incl. Amex)
Monthly feeNone
Hardware cost£19 +VAT
SettlementNext working day (1–2 days standard)
ContractNo lock-in
Amex acceptedYes: same 1.75% rate
Eligibility: UK businesses: sole traders, partnerships, and limited companies. Account holders must be 18 or over. Custom rates available for businesses processing over £200,000 annually. Prohibited categories include firearms and other restricted activities: see Square’s Acceptable Use Policy.
Not ideal if: High-volume sellers who would benefit from Dojo or other negotiated per-transaction rates
ContractHistorically 18 months; reconfirm current term at quote
Amex acceptedYes
Not ideal if: Sole traders and small businesses, 18-month contract and slow onboarding are excessive for low volumes
Watch out: Contract length is longer than most fintech readers and setup takes weeks, not minutes; reconfirm the exact term when you get a quote
Offline transaction capture, useful for businesses in patchy-signal locations
Tailored rates become competitive at high volume (roughly £75k+/year)
Reporting and chargeback handling designed for merchants with dedicated finance teams
Promotional £0/month terminal rental currently available on the public Simplicity plan
Contract length runs longer than fintech competitors and is harder to exit early
Setup and onboarding are slower than fintech competitors, weeks, not minutes
POS integrations require direct confirmation for your specific setup
The £0/month rental is a promotion, not the standard price: confirm the end date before signing
Offline transaction capture with built-in WiFi and 4G fallback, keeps taking payments in patchy-signal locations
Next-day settlement on standard accounts
Accepts Amex alongside Visa and Mastercard
Merchant portal with reporting and chargeback handling built for dedicated finance teams
Tailored rates for businesses above roughly £75k annual card turnover
Promotional £0/month terminal rental currently available on the public Simplicity plan
Payment gateway fees compared
Online transaction fees vary by card origin and business model. For a UK retail business with domestic customers:
Square Online: 1.4% + 25p per UK card transaction
GoCardless Standard: 1% + 20p per bank payment, capped at £4 (no card network fee)
Stripe: 1.5% + 20p for UK cards; 2.5% + 20p for non-UK cards
Worldpay: quote-based; typically competitive at volume above £100,000/year
GoCardless is cheapest for recurring payments by bank. Square is cheapest for standard one-off card transactions from UK customers. Stripe’s 1.5% + 20p costs marginally more than Square online but offers deeper API functionality.
Payment gateway features compared
Hosted vs API-integrated checkout
Square and GoCardless offer hosted checkout pages with no coding required. Stripe is primarily API-first: you write the integration or use a pre-built plugin (Shopify, WooCommerce). Worldpay offers both but setup requires an account manager.
For businesses without a developer, Square or GoCardless is the correct starting point.
Recurring billing and subscriptions
GoCardless is purpose-built for direct debit. Stripe Billing handles card-based subscriptions with dunning, metered billing, and webhook events. Square has basic recurring invoice functionality but no subscription management platform.
Worldpay offers recurring billing via its hosted API but configuration is more complex.
Fees verified against provider websites, May 2026. This is editorial content, not regulated financial advice.
Frequently asked questions
Do I need a merchant account for a payment gateway?
Not always. Square, Stripe, and GoCardless are payment service providers (PSPs): they maintain a pooled merchant account and you share it. You get immediate access without underwriting. Traditional gateways like Worldpay require a separate acquiring relationship, which takes longer to set up but may offer lower rates at volume.
What is the cheapest payment gateway for small businesses?
For card payments, Square at 1.4% + 25p online or GoCardless at 1% + 20p for direct debit are the cheapest for most small UK businesses. Worldpay and TakePayments may offer lower rates at higher volumes but require a quote and a contract.
Should I compare the headline rate or the effective rate?
Compare the effective rate, not the headline percentage. It is the total you actually pay over a month once authorisation fees, monthly minimums, and higher rates on commercial or non-UK cards are counted. We would add up a typical month of your own card mix first.
Can I use more than one payment gateway?
Yes. Some businesses use Square for in-person, Stripe for their website, and GoCardless for recurring invoices. The operational complexity is manageable if the use cases are genuinely distinct.
How we reviewed Best Payment Gateway UK 2026
Ranking criteria. We ranked on the numbers that decide a gateway: the per-transaction cost, what integration actually takes, the payment methods and currencies supported, and how quickly you are paid out. Cost and settlement carry the most weight.
Data sources. We set up test accounts, ran sandbox transactions through each gateway’s checkout and API, and checked pricing against the providers’ own pages in May 2026. Where a provider negotiates rates by volume, we say so rather than quote a single figure.
Update cadence. We re-verify every provider on this page at least monthly, and whenever a provider changes pricing, eligibility, or terms. The verification date on the page reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.
Square ReaderTop Pick
GoCardless
Stripe Terminal
