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Opening Merchant Account For Online Store In The UK

If you are looking to open a merchant account for your online store in the UK, then keep reading on. We are going to provide a full guide.


Trends Driving The Growth In Online Shopping In The UK


The growth of online shopping in the UK is driven by convenience and great choice at ones fingertips. Consumers increasingly value the ease and accessibility of shopping from the comfort of their homes, aided by robust mobile applications and optimized websites. The prevalence of secure payment options, coupled with expedited and reliable delivery services, has further fueled the adoption of online shopping. Moreover, a heightened emphasis on sustainability and ethical considerations, coupled with the continual enhancement of customer experiences through personalized recommendations and responsive customer service, contributes to the ongoing surge in online retail in the UK and globally.


Why Having A Local Merchant Account In The UK For Online Store Is Important?


Securing a local merchant account for your online store in the UK is crucial for various reasons.


Firstly, it streamlines payment processing by allowing transactions in the local currency, simplifying the checkout experience for customers. The use of a local merchant account often comes with reduced transaction costs, offering financial savings compared to international payment processing.


Furthermore, it fosters customer trust and familiarity, as shoppers are more likely to feel at ease when presented with recognizable local payment methods and banking names.


Compliance with local regulations is ensured, mitigating potential legal complications, and the faster settlements associated with local merchant accounts contribute to improved cash flow management.


Additionally, some banks in the UK beside the merchant account offer card processing services to under one banking solution umbrella that makes the merchant life so much easier and less costly. If you would like to learn which banks can offer both the merchant account with GB IBAN and card processing in one package, reach out to us and we will share an up to date list of such banks.


Overall, a local merchant account not only aligns your store with local preferences but also supports a seamless and trustworthy online shopping experience for your UK-based customers.



How To Open A Merchant Account For Online Store In The UK, Easy Guide


Opening a merchant account in the UK involves several steps. Keep in mind that the specific requirements and procedures may vary among financial institutions. Here's a general guide:


1.     Deciding which bank to use. Start by researching and comparing different banks or payment service providers that offer merchant account services. Consider factors such as fees, services offered, customer support, and especially the fact if that can open an account remotely or online. Often, merchants are based outside the UK and will not be able to come for a branch visit. Contact us if you would like to receive a list of banks that can open account fully remotely.

2.     Prepare the documents. Prepare the necessary business documents that the banks analysts will likely request. This may include business registration documents, proof of identity, proof of address, financial statements if available, business plan, online store website link (make sure business address and contact details match the ones provided to the bank), some banks might also ask address for the warehouse and supplier invoices.

3.     Submitting the application. Complete the merchant account application forms that will be provided to you by your account manager. This should be done online. Be thorough and accurate when filling out the application to avoid delays.

4.     Be patient with Due Diligence Procedure. The bank will typically conduct a risk assessment to evaluate the level of risk associated with your business. This may include assessing your credibility and legitimacy of your business, especially if it is newly incorporated. Onboarding team will also look into business model, industry risk and your personal ability to conduct specific business operations. We highly advise clients to be patient and answer all requests and questions with as much as possible detail.

5.     Integration and account set-up. Set up the necessary integration with a payment gateway, which might require linking to the newly opened bank account (unless you will have the same provider for both). The payment gateway acts as a bridge between your website or point-of-sale system and the merchant account, facilitating secure transactions.

6.     Go live. Once everything is in order, you can start accepting payments through your new merchant account. Monitor transactions and stay informed about any updates or changes in the payment processing landscape.


Besides these easy steps, you may also consider your currency conversions and hedging, as a lot of online stores actually have to import products from overseas and sell them in GBP. Your new bank account might have such capability and you would like to have that unlocked before conducting business.





In conclusion, establishing a merchant account in the UK is a pivotal step for businesses seeking to thrive in the country. This process involves careful research, meticulous documentation, and a commitment to compliance standards.


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