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Card Payments for UK Small Business 2026/27 — Flatpay & Alternatives

UK small business card payment options. Flatpay flat-rate, SumUp, Zettle, Square compared. Plus online and direct debit alternatives.

Reviewed August 2026 · Reading time: ~9 minutes

PF
Pennywise Finance Editorial
UK personal finance team — researchers and editors covering savings, ISAs, investing, mortgages and retirement.
Fact-checked
Reviewed August 2026

Affiliate disclosure: approved partner links may earn us a commission. It never affects rankings or recommendations. See affiliate disclosure.

★ Editorial pick — Flatpay
Flatpay offers UK small businesses card payment terminals with transparent, flat-rate pricing — no monthly fees or long tie-ins.
Visit Flatpay →

How UK small businesses take card payments in 2026

MethodBest forTypical cost
Card terminal (SumUp, Zettle, Flatpay)In-person retail, hospitality, market stalls1.4-1.99% per transaction
Online payment gateway (Stripe, PayPal)E-commerce, invoice payments1.5-2.9% + 20p per transaction
Direct Debit (GoCardless, Wise)Recurring bills, subscriptions1% capped at £2
Bank transfer (BACS, Faster Payments)B2B invoicing, larger amountsFree to receive

Flatpay — flat-rate card processing

Flatpay's pitch is transparent pricing — one flat rate per transaction with no monthly fees, hidden charges, or lengthy contracts. Card terminal, contactless, and Apple/Google Pay supported. Suitable for hospitality, retail, and any UK small business taking regular in-person card payments.

Visit Flatpay →

★ Editorial pick
For UK small businesses wanting simple, flat-rate card payment terminals without monthly fees.
Visit Flatpay →

Alternatives — the UK card terminal market

Decision framework

  1. Occasional in-person transactions? — SumUp Air (cheap terminal, no monthly fee).
  2. Regular in-person with variable volume? — Flatpay's flat-rate model.
  3. High volume (£20,000+/month card sales)? — Get a traditional merchant account for better rates.
  4. Online-first business? — Stripe or PayPal.
  5. Recurring subscriptions? — GoCardless direct debit.

Common card-processing mistakes

Frequently asked questions

How much do card terminals cost the UK small business?

Typically 1.4-1.99% per transaction with no monthly fee at the small-business tier. Terminals cost £29-£99 upfront.

Do I need to be a Ltd company to accept cards?

No. Sole traders can accept card payments via all major providers.

How quickly do card payments hit my bank?

1-3 working days typically. Some providers offer same-day settlement for a fee.

What is a chargeback?

When a customer disputes a card payment with their bank. Merchant must provide evidence within a deadline or lose the payment.

Related pages

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Buying/selling a UK business

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General information only, not personalised financial advice. Pennywise Finance is not authorised by the FCA. For decisions involving significant sums, consult an FCA-authorised adviser or the free MoneyHelper service.