Payment gateways
Payment gateways UK: which one, what it costs, compared
A payment gateway is the service that takes a card or bank payment on your website when the customer is not in front of a card machine. In the UK the main options are Stripe, Adyen, Shopify Payments, Square Online, PayPal and Opayo, plus bank-debit gateways like GoCardless. They differ on price (typically 1.4% to 2.9% per online transaction), how they handle SCA / 3D Secure 2, settlement speed, and how much developer work setup needs. This page explains what a gateway is, what it costs, how to choose one, and compares the UK gateways side by side.
What a payment gateway is (and what it is not)
A payment gateway is software. It sits on your checkout, captures the customer's card or bank details securely, runs the Strong Customer Authentication check, passes the transaction to an acquiring bank, and returns an approve or decline in a second or two. It is the online equivalent of the moment a card machine reads a chip or a contactless tap in person.
Three terms get confused, so it is worth separating them:
- Gateway
- The software layer that captures the payment online and handles 3D Secure 2. Stripe Checkout, Adyen Web, Opayo and PayPal Checkout are gateways.
- Merchant account / acquirer
- The bank relationship the money settles into before it reaches your business bank account. Sometimes the same company as the gateway (Stripe, Adyen, Square are both), sometimes separate (Opayo is the gateway, Elavon the acquirer). Our merchant accounts guide covers the settlement side.
- Card machine / terminal
- The physical device for in-person payments. If you only ever take payment face to face, you need a terminal, not a gateway. See which card machine suits your business.
If you sell both online and in person, you do not need two separate providers. An omnichannel acquirer (Stripe, Adyen or Square) runs both rails under one account, so you get one statement, one reconciliation and one chargeback workflow.
UK payment gateways compared (2026)
Indicative UK online (card-not-present) pricing from each provider's published rates. Rates vary by volume, card type and account; confirm on a quote. Each gateway name links to its full review.
| Gateway | UK online pricing | SCA / 3DS2 | Best for |
|---|---|---|---|
| Stripe Checkout | 1. | SCA handled automatically via 3D Secure 2. | UK ecommerce stores running on Shopify, WooCommerce or custom builds |
| Adyen Web | Bespoke interchange-plus per merchant. | SCA via 3D Secure 2 automatic. | Mid-market and enterprise UK merchants |
| Shopify Payments | 2. | SCA via 3D Secure 2 handled by Shopify and Stripe automatically. | UK Shopify stores (Basic, Shopify, Advanced, Plus plans) |
| Square Online | 1. | SCA via 3D Secure 2 handled automatically. | UK SMBs already using Square Terminal in person |
| PayPal Checkout | 2. | SCA via 3D Secure 2 handled automatically. | UK ecommerce stores wanting maximum consumer-recognition payment options |
| Opayo (formerly Sage Pay) | Bespoke per merchant. | SCA via 3D Secure 2. | Established UK SMBs and mid-market with 1+ year trading history |
| Mollie | 1. | SCA via 3D Secure 2 handled automatically. | UK ecommerce stores selling into EEA markets |
Not taking card at all? GoCardless is a bank-to-bank (Bacs Direct Debit) gateway, not a card gateway: 1% + 20p per UK Bacs transaction, capped at £2 per transaction. It is usually the cheapest option for recurring B2B and subscription billing. See also pay by bank and the virtual terminal guide for taking payment over the phone.
What a payment gateway costs in the UK
Most UK gateways charge a percentage plus a small fixed fee per online transaction. Across the mainstream providers that lands between 1.4% and 2.9%, before you add the extras below. There are five line items, not one, and comparing on the headline percentage alone is the most common mistake:
| Cost line | Typical UK range | Notes |
|---|---|---|
| Per-transaction rate | 1.4% to 2.9% + 20p to 30p | Square 1.4% + 25p and Stripe 1.5% + 20p sit at the low end; PayPal 2.9% + 30p at the high end. |
| EEA / international cards | 2.5% to 4.9% | Non-UK cards cost more. Stripe EEA is 2.5%, international 3.25%; PayPal cross-border up to 4.9%. |
| Chargeback fee | £14 to £25 each | Charged whether you win or lose; some providers refund on a won dispute. Card-not-present raises your exposure. |
| Monthly / platform fee | £0 to £60+ | Stripe, Square and Mollie have no standard monthly fee; Adyen platform fees start around £60; Opayo gateway fees £20 to £40. |
| Interchange-plus (at scale) | Interchange + ~0.3% to 0.5% | Available above roughly £100k a month (Stripe custom, Adyen, Opayo via Elavon). Cheaper than blended on debit-heavy baskets. |
The way to compare gateways honestly is total cost on your actual card mix, not the advertised rate. A blended 1.5% can be dearer than an interchange-plus deal once your basket is mostly regulated-interchange debit cards. The same logic applies in person: our card machine cost guide breaks down the equivalent five line items for terminals, and interchange-plus vs blended pricing explains when each wins.
How to choose a payment gateway
There is no single best gateway, only the best fit for your platform and how you take money. Work through five questions in order:
- Start from your platform. Shopify stores usually default to Shopify Payments, because using anything else adds a Shopify surcharge of 0.5% to 2%. WooCommerce, custom and headless builds are most flexible on Stripe. Stores that already run a Square Terminal in person get shared inventory from Square Online.
- Identify your transaction shape. One-off card checkout, recurring card subscription, or recurring bank-debit billing. Card subscriptions favour Stripe Billing; recurring B2B invoicing is cheapest on GoCardless bank debit, which also avoids chargebacks and the SCA conversion drop.
- Set your monthly volume band. Below roughly £100k a month, standard flat pricing is the norm. Above it, ask for interchange-plus from Adyen, Stripe custom, or Opayo via Elavon.
- Choose a pricing model. Blended flat rate is simpler to predict; interchange-plus is cheaper at scale and on debit-heavy baskets. Decide on total cost, not the headline rate.
- Confirm your risk category. Mainstream gateways decline gambling, crypto, adult, dating and CBD. If you trade in a high-risk vertical, you need a specialist acquirer disclosed upfront, not a mainstream gateway that will terminate you later.
Selling into Europe as well as the UK? Mollie carries local payment methods (iDEAL, Bancontact, SOFORT) that mainstream UK gateways do not, which lifts conversion in EEA markets. Want consumer-wallet reach and Buy Now Pay Later built in? PayPal Checkout trades a higher rate for recognition and cart recovery.
What changes when payment moves online
- Card-not-present pricing is higher
- Online transactions carry higher interchange than in-person. Expect the same acquirer's online rate to sit above its counter rate before scheme fees and gateway markup.
- Chargeback exposure rises
- Card-not-present sits on the merchant for fraud. Friendly fraud and "item not received" disputes are common, and most UK gateways charge roughly £14 to £25 per chargeback regardless of outcome. Our chargebacks guide covers how to defend and reduce them.
- 3D Secure 2 (SCA) is mandatory
- UK and EEA card payments require Strong Customer Authentication on most online transactions. Gateways handle the challenge automatically, but conversion drops 2 to 5 percentage points when a challenge is triggered, which is why exemption handling matters at volume.
- Settlement can hold reserves
- Online acquirers often settle on rolling schedules for new accounts and can hold a reserve. Stripe defaults to a 7-day cycle for new merchants; Adyen schedules are bespoke. Reserve and settlement terms matter more online than in person.
- PCI scope is different
- In person you can usually claim SAQ-B (hardware only). Online you typically need SAQ-A or SAQ-A-EP, with quarterly scans for the latter. Hosted-checkout gateways minimise scope; self-hosted forms increase it. See the PCI-DSS v4 guide for UK small merchants.
If you are in a high-risk vertical
Most online gambling, crypto, dating, subscription-trap, adult and CBD businesses fall outside mainstream UK gateway underwriting. Stripe, Adyen, Shopify Payments, Square and PayPal will decline them, or terminate after onboarding if the category is misdeclared. These verticals need specialist high-risk acquirers with explicit risk-aware approval, higher rates and rolling-reserve arrangements. We cover the panel that engages with each in the high-risk payment gateway guide and the wider high-risk verticals hub.
Frequently asked questions
What is a payment gateway?
A payment gateway is the service that takes a card or bank payment on your website or app, when the customer is not standing in front of a card machine. It captures the payment details securely, runs the Strong Customer Authentication (3D Secure 2) check, sends the transaction to the acquiring bank, and returns an approve or decline. In the UK the mainstream options are Stripe, Adyen, Shopify Payments, Square Online, PayPal and Opayo, plus bank-debit gateways like GoCardless.
How much does a UK payment gateway cost?
Most UK gateways charge a percentage plus a small fixed fee per online transaction, typically 1.4% to 2.9% depending on provider, card type and volume. As a guide from published rates: Square Online is 1.4% + 25p, Stripe is 1.5% + 20p, Mollie is 1.8% + 25p, Shopify Payments runs 2.0% + 20p down to 1.5% + 20p by plan, and PayPal is 2.9% + 30p. Chargebacks usually cost around £14 to £25 each, and some gateways add a monthly platform fee. Above roughly £100k a month you can often negotiate interchange-plus pricing, which is cheaper on debit-heavy baskets.
What is the difference between a payment gateway and a merchant account?
The gateway is the software that captures the payment online; the merchant account (provided by an acquiring bank) is where the money settles before it reaches your business bank account. Some providers bundle both: Stripe, Adyen and Square act as gateway and acquirer together, so you sign one contract. Others separate them: Opayo is the gateway and Elavon is the acquirer behind it. See our merchant accounts guide for how the settlement side works.
Do I need a payment gateway if I already have a card machine?
Only if you also sell online or take payments where the card is not present (a website checkout, a subscription, or a pay-by-link invoice). A card machine handles in-person payments; a gateway handles card-not-present. If you sell both ways, an omnichannel acquirer such as Stripe, Adyen or Square can run both rails under one account, which means one statement and one reconciliation.
Which payment gateway is best for a UK small business?
It depends on your platform and transaction shape, not a single winner. Shopify stores usually get the best deal from Shopify Payments (it avoids Shopify's surcharge on other gateways). WooCommerce, custom and headless builds are most flexible on Stripe. Square Online suits SMBs already using a Square Terminal in person. Recurring B2B billing is cheapest on GoCardless bank debit. Selling into the EEA favours Mollie for local payment methods.
What is SCA / 3D Secure 2 and does my gateway handle it?
Strong Customer Authentication (SCA) is a UK and EEA rule that requires most online card payments to be verified, usually through 3D Secure 2. Every mainstream UK gateway handles the 3DS2 challenge automatically. The trade-off is conversion: when a challenge is triggered, checkout completion typically drops 2 to 5 percentage points, which is why gateways with good exemption engines (Adyen, Stripe) matter at volume.
Can a payment gateway support high-risk businesses?
Not the mainstream ones. Stripe, Adyen, Shopify Payments, Square and PayPal decline online gambling, crypto, adult, dating and CBD on standard underwriting, and can terminate accounts after onboarding if the trading category is misdeclared. High-risk verticals need a specialist acquirer with explicit risk-aware approval, usually at a higher rate and with a rolling reserve. See our high-risk payment gateway guide for the panel that engages with each vertical.
Founder & Managing Director, Muswell Rose, MerchantHQ
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind MerchantHQ. His career runs through insurance, mortgages, commercial finance and fintech lending, including payments and merchant services. He writes the MerchantHQ library.
Last reviewed: 8 July 2026