Payments
Payment processor comparisons for UK businesses
Payment processing fees look close on paper — 1.5% here, 2.9% there — but the compounding effect across a year of revenue is often the biggest line item you'll overlook. We compare UK providers on the fees that actually move the needle: domestic card rates, cross-border surcharges, FX margins and dispute handling.
Last reviewed: April 2026
Featured comparison
PayPal vs Stripe vs Wise
Full fee breakdown for UK businesses — domestic card rates, cross-border surcharges, FX margins and developer tooling compared.
Winner: Stripe →
What actually differentiates a payment processor
The headline transaction fee is the smallest part of the story. Providers with the lowest visible rates sometimes recover it through FX margins or payout fees. These are the six dimensions that move the real cost.
Transaction fees
The rate charged on each payment — the headline 1.5% vs 2.9% difference compounds into thousands of pounds a year at scale. Always check the fee for your specific card mix (UK, EEA, international) rather than the advertised rate.
Cross-border and FX costs
Hidden by design on most platforms. Exchange-rate margins (sometimes 3-4%) and non-EEA card surcharges can double your effective fee. The best providers use the mid-market rate and publish their FX spread.
Payout speed and cost
Standard payouts are 2-5 business days on most platforms. Instant payouts cost between 0% (Wise) and 1.5% (PayPal). Cash-flow matters more than it sounds for small businesses — factor it in.
Developer experience
Quality of the SDKs, webhook reliability, testing tools and documentation. Stripe set the modern standard here. Weight this highly if you'll integrate payments yourself rather than use a plugin.
Dispute and chargeback handling
Chargeback fees range from nothing to £20 per case. Equally important: the interface for responding, how evidence is presented, and how often the provider sides with the merchant vs the cardholder.
Coverage and customer trust
PayPal's brand still converts better for some B2C audiences. Stripe covers 40+ countries with local acquiring. Wise specialises in multi-currency businesses. Match the provider's footprint to yours.
Need a different angle?
The comparison above covers the three providers most UK businesses shortlist. If your situation is different — enterprise volumes, subscription billing, a specific ecommerce platform — build your own on Comparia with the providers and criteria that match.
Build your own payment comparison →Frequently asked questions
Which payment processor has the lowest fees in 2026?
For UK card payments, Stripe has the lowest standard rate at 1.5% plus 20p. PayPal is 2.9% plus 30p base plus cross-border surcharges. Wise Business is competitive for international payments (around 1% domestic, mid-market FX) but charges more for domestic cards. On a typical UK-only business, the difference between Stripe and PayPal is roughly £1,400 per £100,000 processed.
Can I use more than one payment processor?
Yes, and many businesses do. A common setup is Stripe for card payments (lowest fees, best developer tools), PayPal as a checkout option for customer familiarity, and Wise for receiving international transfers at the mid-market rate. The cost of running parallel integrations is usually worth the conversion and fee savings.
Is Stripe worth it for a small business?
Generally yes, if you can handle the integration. Stripe's fees are the lowest of the big three and the tooling is excellent. For very small businesses with no developer time, Shopify Payments or PayPal's hosted checkout can be simpler to set up — but you pay for the convenience in fees.
What's the real cost of accepting international payments?
On PayPal, expect the 2.9% base rate plus 1.29% EEA or 1.99% non-EEA cross-border fee, plus FX margin of roughly 3-4% if you receive in a different currency. Stripe applies a 1% or 2% cross-border fee depending on the card origin. Wise bills itself on this specifically and typically lands between 0.4% and 1% for the FX leg.
How do chargeback fees compare?
Stripe charges £20 per chargeback (non-refundable even if you win the dispute). PayPal charges £14 but refunds it if you win. Wise doesn't support card acceptance so doesn't charge chargeback fees but has its own dispute process for received payments.
Picking a provider for your specific situation?
Describe your business — card mix, volume, international share — and Comparia will weigh the providers against your priorities, not a generic average.
Start a payment comparisonHow Comparia evaluates payment processors
Every payment processor comparison starts with the six weighted criteria above. We use published 2026 fee schedules from each provider and verify them against real processed transactions where possible. Exchange-rate margins are measured against the mid-market rate on the day, not against the provider's own benchmark.
Comparia does not accept payment from processors. Some provider links are affiliate links which support the site at no cost to you. Recommendations are based on structured analysis, not sponsorship.