If you’re a UK business planning to accept credit or debit card payments, one of the first terms you’ll come across is a merchant account. But what exactly is it—and why is it so important?
In this guide, Scalex Technology breaks down everything you need to know about merchant accounts, including how they work, their benefits, and how to get one quickly and easily.
💳 What Is a Merchant Account?
A merchant account is a type of business bank account that allows your company to accept and process card payments from customers.
It acts as a temporary holding account where funds from card transactions are verified and settled before being transferred to your main business bank account—usually within 1–3 working days.
🏦 How Does a Merchant Account Work?
Here’s how the process typically looks:
- Customer pays using a debit or credit card (online or in-person).
- The payment is sent to your merchant account, where it is verified by your payment processor.
- After fraud checks and authorisation, the money is cleared.
- The cleared funds are then transferred to your business bank account.
🔐 It ensures payment security, fraud protection, and seamless transactions—both online and in-store.
✅ Why Do You Need a Merchant Account?
If you want to accept Visa, Mastercard, Amex, or digital wallet payments (Apple Pay, Google Pay), a merchant account is essential.
Key Reasons:
- 🏪 Retail businesses need it for in-store card terminals.
- 💻 E-commerce sites need it for online checkout payments.
- 📱 Mobile traders use it for card readers on the go.
- 🧾 Recurring payments and subscriptions require it for auto-billing.
Without a merchant account, you can’t legally or securely process card payments in the UK.
🛠️ Types of Merchant Accounts
There are different merchant account setups depending on your business needs:
| Type | Description | Best For |
|---|---|---|
| Aggregated | Shared account (e.g., Stripe, Square) | Start-ups, small businesses |
| Dedicated | Set up solely for your business | Medium to large enterprises |
| High-Risk | For industries with high chargeback rates | Gambling, travel, CBD, etc. |
Scalex Technology can help you determine which type suits your operations and transaction volumes.
💷 Merchant Account Fees to Consider
While rates vary, here are common fees involved:
- Transaction fees (e.g., 1.5%–2.9% per sale)
- Monthly service fees
- Setup or integration charges
- Chargeback fees
At Scalex, we help you compare providers to minimise hidden costs and negotiate better rates.
🔌 How to Get a Merchant Account in the UK
Setting up a merchant account involves:
- Choosing a provider (direct bank or through a broker like Scalex)
- Submitting documents (proof of business, ID, bank info)
- Risk assessment by the provider
- Approval & integration with your POS or payment gateway
Scalex simplifies the process by handling paperwork, approvals, and tech setup in under 48 hours for most businesses.
🛒 Merchant Account vs Payment Gateway: What’s the Difference?
- A payment gateway is the tech that captures card details online.
- A merchant account is the bank account where the funds go.
You need both to process payments. Scalex Technology can bundle these services for seamless integration.
🏆 Why Choose Scalex Technology?
- Fast merchant account setup
- Competitive transaction rates
- Integration with card machines, EPOS, and websites
- UK-based support team
- Options for all business sizes and industries
We help UK businesses get paid faster, more securely, and with full support from day one.
Final Thoughts
A merchant account isn’t just a tool—it’s the backbone of your payment infrastructure. Whether you’re starting your business or scaling up, getting the right merchant account can streamline your cash flow and build trust with your customers.
💬 Ready to Accept Card Payments?
Get your merchant account set up with Scalex Technology today. Speak to our payment experts and unlock the tools your business needs to grow.
