Payment Processing Guide for UK Small Businesses in 2026
Everything UK small businesses need to know about accepting payments. Compare card machines, transaction fees, QR payments and payment platforms to find the best fit.
Try Aphelios FreePayment Methods for UK Businesses
Card Payments
Contactless, chip and PIN, and mobile wallets (Apple Pay, Google Pay). The most common payment method in the UK. Requires a card reader or payment terminal.
QR Code Payments
Customer scans a QR code with their phone and pays via their preferred method. No card reader required. Growing rapidly in the UK, especially for small transactions.
Payment Links
Send a payment link via email, SMS or messaging apps. Customer clicks the link and pays online. Ideal for invoices, phone orders and remote payments.
Bank Transfer
Direct bank transfer (Faster Payments). No transaction fees but slower for customers. Often used for B2B payments and large transactions.
UK Card Machine Fees Comparison
| Provider | Transaction Fee | Card Reader Cost | Monthly Fee | Contract |
|---|---|---|---|---|
| Aphelios (Stripe) | 1.5% + 20p | £0 (QR) / £49 terminal | £0 | None |
| SumUp | 1.69% | £19-£49 | £0 | None |
| Zettle | 1.75% | £29-£79 | £0 | None |
| Square | 1.75% | £19-£149 | £0 | None |
| TakePayments | 1.5%-2.5% | £29-£149 | £0-£20 | 12-18 months |
Last updated: August 2026. Fees vary by card type and transaction volume. Check provider websites for current pricing.
Card Machines vs QR Payments: Which Is Right for You?
UK businesses have two main options for accepting in-person payments: traditional card machines and QR code payments. Card machines (like those from SumUp, Zettle and Square) require the customer to insert or tap their card on a dedicated terminal. QR code payments let the customer scan a code with their phone and pay using their preferred method.
For many small businesses, QR payments offer significant advantages: no hardware cost, no monthly fees and no contract. The customer uses their own phone to pay, so you do not need to buy or maintain a card reader. This is particularly valuable for market traders, pop-up shops and businesses with low transaction volumes.
Card machines are better suited for high-volume retail environments where speed is critical and customers expect to tap or insert their card. If you process hundreds of transactions per day, a dedicated card reader may be worth the investment.
Choosing a Payment Provider
Key Factors to Consider
- Transaction fees: The percentage and fixed fee charged per transaction. Even small differences add up over hundreds of transactions.
- Hardware costs: Card readers range from £19 to £149. QR payments require no hardware at all.
- Monthly fees: Some providers charge monthly fees for software or terminal rental. Others are completely free.
- Contract terms: Avoid long-term contracts if possible. Month-to-month gives you flexibility to switch if your needs change.
- Integration: If you use POS or accounting software, choose a payment provider that integrates with your existing tools.
Frequently Asked Questions
What is the cheapest way to accept card payments in the UK?
The cheapest way is through QR code payments like Aphelios, which requires no card reader and has no monthly fees. Transaction fees start at 1.5% + 20p for UK cards through Stripe.
How much are card machine fees in the UK?
UK card machine fees typically range from 1.5% to 2.5% per transaction, with some providers also charging a fixed fee of 5-20p. Contactless and standard debit cards usually have the lowest rates.
Can I accept payments without a card reader?
Yes. Aphelios accepts payments via QR codes and payment links without any card reader hardware. Customers scan the QR code with their phone and pay via Apple Pay, Google Pay or card.
What is the best payment solution for UK market traders?
For UK market traders, QR code payments (Aphelios) are ideal for low-volume traders who want no hardware cost. SumUp is popular for its simple card reader and low 1.69% fee.
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