Learning • 7 min read

Online Payment Processing: A UK Guide

How online card processing works in the UK, the main provider types, and how to keep costs low as you scale.

How online processing works

The customer enters card details on your site or a hosted page. The gateway transmits the data securely to the acquirer, who routes it via the card scheme to the issuing bank for authorisation. Funds settle to your bank a day or two later.

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The main provider types

Bundled online-first

Stripe, Adyen, Shopify Payments, PayPal. Fast to set up, blended pricing, no long contracts.

Traditional acquirer + gateway

Worldpay/Barclaycard + Opayo/Braintree. More negotiable at scale, more complex to manage.

Wallets and BNPL

Apple Pay, Google Pay, Klarna, Clearpay - added as extra payment methods on top of a primary processor.

Keeping costs low as you scale

Below £20k/month, bundled is usually cheapest. £20k-£100k, benchmark blended vs Interchange Plus. Above £100k/month, Interchange Plus or a negotiated Adyen/Worldpay deal usually wins.

Key takeaways

  • Online processing needs a merchant account and a gateway (bundled or separate).
  • Bundled providers dominate low and mid volume; Interchange Plus dominates high volume.
  • Review pricing at every material step-change in monthly volume.

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