This guide breaks down how to accept payments online for your UK business, including step-by-step advice, platform comparisons, and tips to keep your costs and risks under control.
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It should be straightforward; someone wants your product, they pay you money, you receive the money, and deposit it in your account. For many small business owners, however, figuring out how to accept payments online can feel like a maze of options, providers, and technical mumbo jumbo that can cause some to feel lost. In the world of online payments, the acceptance part is key, and learning how to accept online payments securely and efficiently is paramount.
Consumer habits in the UK have shifted decisively toward digital, with over 80% of UK adults now shopping online. These shoppers need to be able to pay for their products and services online, and most people will be expecting fast, secure digital payment options that are both easy to use and secure.
The world is becoming more and more digital, and thus, in order to compete in the digital marketplace, your payment options should be on point. If your business can’t process digital transactions correctly, you risk losing customers to providers who can. Plus, offering online payments makes it easier to manage recurring billing, reduce late payments, and improve cash flow transparency.
When setting up online payments, the best method for your business isn't a one-size-fits-all solution. It depends on your size, industry, customer journey, and how much control you want over the checkout process. Below are the most widely used online payment methods in the UK, along with real-world examples for each:
A payment gateway is the technology that authorises and processes card payments on your website; think of it as the virtual version of a card terminal. When a customer enters their debit or credit card details, the gateway securely transmits the data to the payment processor and returns a confirmation in seconds. The payment gateway is the one that ensures the security of the transaction.
Gateways are ideal for businesses with their own websites that want a secure, fast checkout process. Most modern providers offer plug-and-play integrations with minimal setup, and some of the most popular are listed below.
Examples of payment gateways:
Rather than attempting and many times failing at creating your own .pdf invoices, or telling customers to just send payment without an invoice or manually, invoicing platforms let you generate professional invoices. They also come with embedded payment links! Customers can pay directly with a card, bank transfer, or through services like Apple Pay. Some examples are listed below:
If you're running an online shop, using a dedicated e-commerce platform with built-in payment support is often the most efficient choice. These platforms handle inventory, checkout, shipping, and tax, all in one dashboard; pretty much an all of the above type of solution.
Many platforms integrate directly with global and UK-based payment providers, giving you flexibility over how you charge and what methods you accept.
Here are some examples of e-commerce platform integration:
Mobile payment links allow you to generate a custom payment URL that can be sent via SMS, WhatsApp, or email. When the customer clicks the link, they're taken to a secure page to enter their card details and complete the transaction. Remember that security is paramount, and many times, payment links can be part of scams, so be vigilant. This method works well for businesses that are more mobile, such as food delivery, trades, or independent consultants.
Here are some examples of mobile payment link services:
For larger or more technically advanced businesses, embedded checkout experiences provide the most control. Rather than redirecting customers to a third-party payment page, you can build the payment form directly into your site, giving it a seamless, branded feel. This method is best for high-volume e-commerce businesses or platforms offering a customised user experience.
Here are some examples of embedded checkouts:
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Accepting card payments online means protecting both your business and your customers. UK businesses must comply with PCI DSS (Payment Card Industry Data Security Standard), which governs how cardholder data is handled.
Non-compliance can lead to fines, chargebacks, or suspended accounts. But with the right setup, staying secure is straightforward.
Here’s what you need to do:
Modern gateways take care of most compliance needs. Tools like iwocaPay offer fraud detection, encryption, and hosted checkouts, making it easier to stay secure without extra admin.
Setting up online card payments can be done in just a few steps. Here's how to get started:
Yes, many UK businesses use all-in-one providers like iwocaPay, Stripe, or PayPal that don’t require a separate merchant account. These “payment facilitators” handle processing under their own license, making setup faster and easier.
It’s a simple, low-barrier option ideal for sole traders, freelancers, and SMEs, though transaction fees may be slightly higher than with traditional merchant accounts.
Technically, yes. Some platforms let you pass fees to customers and charge no monthly costs. But in practice, most UK businesses absorb transaction fees as part of doing business. iwocaPay offers a rare advantage: your customers can pay in instalments, while you get paid upfront and in full, without losing a percentage to fees.
Accepting credit card payments online usually comes with transaction fees, but the actual cost depends on which provider you choose, how you structure your payments, and whether you pass those costs on to customers.
While most modern platforms offer free setup and no monthly fees, they typically charge a small percentage per transaction. That might not seem like much, but over time it can add up, especially for businesses operating on tight margins or high volume.
Let’s look at two examples, a £500 payment and a £2,000 invoice, to see how common platforms compare.
This chart compares how much your business receives from a £500 transaction using different online payment platforms. While traditional processors deduct fees, iwocaPay lets you keep the full amount, because the customer pays in instalments, and you get paid in full upfront.
Larger transactions magnify the cost of processing fees. This chart shows how different providers affect your revenue on a £2,000 payment. iwocaPay again stands out by delivering 100% of the funds to your account immediately, with no percentage cut taken.
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Getting paid online is only half the job. The other half is making sure those payments flow cleanly into your accounting system. Fortunately, many modern payment solutions integrate directly with platforms like Xero, QuickBooks, and FreeAgent.
Here’s how these integrations help:
The best payment method really depends on how your business runs; what you sell, who your customers are, and whether you care more about speed, flexibility, lower fees, or cutting down admin work. If you're selling products online, sending invoices for services, or setting up recurring billing or deposits, those details shape what will work best. Some businesses need fast access to funds, while others focus more on reducing fees, avoiding chargebacks, or finding a solution that plugs right into their existing systems.
Here’s a quick comparison:
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