Key takeaways
- Stripe charges 1.5% + 20p for standard UK cards and 2.8% + 20p for premium UK cards, with payment links included at no extra cost.
- PayPal payment links cost 1.2% + 30p when the customer pays by card and 2.9% + 30p when they pay with a PayPal account.
- SumUp payment links cost 2.5% per transaction with no monthly fee.
- Square charges 1.4% + 25p for online checkout with UK cards and 2.5% for invoices paid by card.
- GoCardless Direct Debit costs 1% + 20p, capped at £4, on its Standard plan, plus VAT.
- On a £500 invoice paid by standard UK card, fees range from about £6.30 to £12.50 across these providers.
- UK law bans surcharging customers for paying by consumer cards; only commercial cards can be surcharged, and only up to your cost.
A payment link is a web address you send a customer, by email, text or on an invoice, so they can pay you by card or bank without you needing a website or card machine. For UK small businesses the main costs are a percentage of each payment plus, with some providers, a fixed fee per transaction. This page compares five providers in alphabetical order, using fees from their own UK pricing pages checked on 6 November 2026.
How much do payment links cost?
Payment link fees for UK cards run from about 1.2% to 2.9% of the payment, depending on the provider and how the customer pays. None of the five providers below charges a monthly fee for its basic plan.
| Provider | Fee for a UK card payment | Monthly fee |
|---|---|---|
| GoCardless | Not cards; Direct Debit 1% + 20p (cap £4) | £0 |
| PayPal | 1.2% + 30p (card); 2.9% + 30p (PayPal account) | £0 |
| Square | 1.4% + 25p (online checkout); 2.5% (invoices) | £0 (Free plan) |
| Stripe | 1.5% + 20p (standard card); 2.8% + 20p (premium) | £0 |
| SumUp | 2.5% (payment links) | £0 |
Fees for overseas cards are higher with every provider. Check the international rates on each pricing page if you sell abroad.
Provider details
GoCardless
GoCardless collects by Direct Debit from the customer’s bank account rather than by card. Its Standard plan costs 1% + 20p per payment, capped at £4, with an extra 0.3% on payments over £2,000. VAT is charged on UK transaction fees. It suits regular invoices and subscriptions; see collecting payments by Direct Debit.
PayPal
PayPal’s UK fee page shows a split rate on payment links. Customers paying with a standard card, Apple Pay or another wallet cost you 1.2% + 30p. Customers paying through their PayPal account cost 2.9% + 30p, and Buy Now Pay Later costs 3.9% + 30p. Payments from the EEA add 1.29%, and from other markets 1.99%.
Square
Square’s UK pricing lists online checkout at 1.4% + 25p for UK cards and 2.5% + 25p for non-UK cards. Invoices paid by card cost 2.5%, and manually keyed card payments also cost 2.5%. Square lists Payment Links from £0 a month but does not show a separate rate for them, so confirm which rate applies before you rely on it.
Stripe
Stripe charges 1.5% + 20p for standard UK cards, 2.8% + 20p for premium UK cards, 2.5% + 20p for EEA cards and 3.15% + 20p for international cards. Payment links are included at no extra charge. Optional extras are a custom domain at US$10 a month and post-payment invoices at 0.4%, capped at US$2 per invoice.
SumUp
SumUp payment links cost 2.5% per transaction with no monthly fee. SumUp also sells a Payments Plus subscription at £19 a month and an Invoices Plus subscription at £8 a month plus VAT, but its pricing page did not show the online rates under those plans when we checked.
Worked example: a £500 invoice
Here is what each provider would charge on a single £500 invoice, using the rates above.
| Provider and method | Fee | You receive |
|---|---|---|
| GoCardless Direct Debit | £4.00 (capped) | £496.00 |
| PayPal link, paid by card | £6.30 | £493.70 |
| Square invoice, paid by card | £12.50 | £487.50 |
| Stripe link, standard UK card | £7.70 | £492.30 |
| SumUp payment link | £12.50 | £487.50 |
The figure changes with the customer’s choice. The same £500 through Stripe on a premium card costs £14.20, and through PayPal with a PayPal account it costs £14.80. GoCardless VAT on the fee is not included above.
Which option fits you?
- If you send a few one-off invoices, a free payment link from PayPal, Square, Stripe or SumUp avoids monthly costs.
- If your customers pay the same amount every month, Direct Debit through GoCardless caps the fee at £4 per payment.
- If your average invoice is large, a capped fee or a low percentage matters more than the fixed fee.
- If you also take payments in person, look at the card machine rates from the same provider; see card machines compared.
- If you sell mostly to overseas customers, compare the international surcharges, which can double the cost.
Can you pass fees on to customers?
Not for most card payments. Regulation 6A of the Consumer Rights (Payment Surcharges) Regulations 2012 bans fees for paying by card-based instruments that are not commercial cards. Where a surcharge is allowed, such as on a commercial card, it cannot exceed your cost.
Build the cost into your prices instead, and set clear payment terms. If a customer pays late, you may be able to claim statutory interest; try our late payment interest calculator.
How to record payment fees in your books
- Record the invoice at its full value as a sale.
- Record the payout received in the bank.
- Post the difference to a bank charges or merchant fees expense account.
- Match payouts to invoices using the provider’s report, because many providers batch several payments into one payout.
Many accounting packages offer a direct feed from Stripe, PayPal and similar providers that does this for you.
Frequently asked questions
What is the cheapest way to take online payments in the UK?
It depends on the invoice size and how the customer pays. On a £500 invoice by standard UK card, PayPal’s card rate of 1.2% + 30p gave the lowest card fee in our example, and GoCardless Direct Debit was lower still at £4.
Do payment links have a monthly fee?
Not on the basic plans of GoCardless, PayPal, Square, Stripe or SumUp. Each charges per transaction instead.
Can I charge customers a card fee?
Not on consumer cards. UK rules ban surcharges on them, and any surcharge on a commercial card is limited to your actual cost.
Are payment processing fees tax deductible?
Yes. Card and payment fees are a business expense, recorded as bank or merchant charges in your accounts.
Do I need a website to use a payment link?
No. You can send the link by email or text, add it to an invoice or show it as a QR code.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.