The verdict in three sentences
For a London services SME taking 1.05 million GBP online, the annual bill for payment fees lands between 13,000 and 19,000 GBP depending on the share of UK cards, international cards and Direct Debit. The right provider is not necessarily the cheapest on paper: compare the real cost on your mix, how Strong Customer Authentication (3-D Secure) is handled and an integration cost of 1,800 to 4,500 GBP. By moving recurring clients to Direct Debit and negotiating Interchange++ pricing, an SME of this size saves 4,000 to 5,000 GBP a year.
Public provider pricing in 2026
The rates below are 2026 public orders of magnitude for a UK merchant without negotiation. They change regularly: always check the current price list before signing.
| Provider | Standard UK card | International card | Direct Debit | Subscription | Strength |
|---|---|---|---|---|---|
| Stripe | 1.5 % + 20p | 3.25 % + 20p (EU cards 2.5 % + 20p) | Bacs 1 % + 20p (capped at 2 GBP) | 0 GBP | API, recurring billing |
| Adyen | Interchange++ + about 0.10 GBP | Interchange++ | Bacs around 0.20-0.30 GBP | Monthly minimum invoice | High volumes, multi-country |
| GoCardless | No | No | 1 % + 20p (capped at 4 GBP) | 0 GBP | Pure recurring Direct Debit |
| Mollie | 1.2 % + 20p | 3.25 % + 20p | Varies | 0 GBP | Simplicity, European methods |
| Bank acquirer | 0.6 to 0.9 % + 0.10 GBP | 1.5 to 2.5 % | Bureau fees | 20 to 50 GBP/month | Negotiated rate, banking relationship |
| Open Banking (pay by bank) | 0.5 to 1 % or fixed 0.20 GBP | No | n/a | 0 GBP | Low cost, instant settlement |
The bank looks cheaper, but technical integration, the refund interface and subscription handling are often heavier. The real comparison is total cost.
Simulating your real cost on 1.05 million GBP
Take a consulting and training SME with an average card ticket of 180 GBP and a Direct Debit ticket of 350 GBP. Mix: 70 % UK cards, 10 % international cards, 20 % Direct Debit.
| Flow | Annual volume | Transactions | Stripe standard cost | Optimised cost (IC++ and more Direct Debit) |
|---|---|---|---|---|
| UK cards | 735,000 GBP | 4,080 | 11,840 GBP | 5,300 GBP (555,000 GBP at 0.9 % + 0.10 GBP) |
| International cards | 105,000 GBP | 580 | 3,530 GBP | 3,530 GBP |
| Direct Debit | 210,000 GBP | 600 | 1,200 GBP | 3,200 GBP (390,000 GBP, 1,600 payments) |
| Disputes (0.1 %) | n/a | 5 | 100 GBP | 100 GBP |
| Extras (FX, payouts) | n/a | n/a | 300 GBP | 300 GBP |
| Annual total | 1,050,000 GBP | ≈ 5,265 | ≈ 16,970 GBP | ≈ 12,430 GBP |
The gap comes from two levers: moving clients on annual contracts to Direct Debit and getting Interchange++ pricing on UK cards, where consumer debit interchange is capped at 0.2 %. Most providers grant it above 500,000 to 1 million GBP of annual volume.
SCA, integration and contract traps
Under the UK's PSD2-derived rules, Strong Customer Authentication (3-D Secure 2) is mandatory for card payments, with exemptions for low amounts, merchant-initiated recurring payments and trusted beneficiaries. A well-configured provider cuts SCA-related drop-off from 5-8 % to 2-3 %.
| Item | Indicative cost or delay | To check |
|---|---|---|
| Hosted checkout integration | 1,800 to 2,600 GBP, 1 to 2 weeks | Branding, language, logo |
| API and subscription integration | 3,000 to 4,500 GBP, 3 to 4 weeks | Invoices, reminders, credit notes |
| Accounting link (Xero, QuickBooks) | 700 to 1,300 GBP | Automatic reconciliation |
| Payout delay | T+2 to T+7 | Cash flow, rolling reserve |
| Dispute fees | 15 to 20 GBP per dispute | Refunded if won? |
| Contract length | None to 36 months | Exit penalties |
| Card scheme fees | Separate line on IC++ | Total effective rate |
Mini case study
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Emma, managing director of a 22-person training company in London, takes 1.05 million GBP a year online via Stripe standard pricing, about 16,970 GBP in fees. She moves her 40 corporate clients to annual Bacs Direct Debit (180,000 GBP shifted from cards, capped at 2 GBP per payment) and moves her UK cards to Adyen IC++ at about 0.9 % + 0.10 GBP all-in. New cost: about 12,430 GBP, i.e. 4,540 GBP saved a year. Integrating Direct Debit mandates and reminders costs 3,000 GBP: payback in 8 months, then a net gain every year.
FAQ
From what volume can we negotiate with a provider?
Most providers open pricing discussions above 500,000 to 1 million GBP of annual volume. The typical gain is 0.2 to 0.6 points on UK cards.
Should we keep two providers?
For an SME at 1 million GBP, one provider is usually enough. A second one makes sense above 3 to 5 million GBP, or if a few hours of downtime cost more than 4,000 GBP.
Is Direct Debit risky?
Under the Direct Debit Guarantee, a payer can claim an immediate refund for an error at any time. Failure rates remain low in B2B, often under 1 %.
Does SCA hurt conversion?
Badly configured, it can lose 5 to 8 % of payments. With exemptions handled well, the loss drops to 2 to 3 %.
How long does switching provider take?
Plan 3 to 6 weeks: account opening and KYC in 1 to 2 weeks, integration in 2 to 4 weeks. Migrating stored cards for subscriptions requires a specific provider-to-provider procedure.
Let's scope your project. Send us your volumes, your card and Direct Debit mix and your billing tool: we price your payment integration between 1,800 and 4,500 GBP, delivered in 2 to 4 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
