A merchant account is an acquiring relationship in your own business's name, underwritten for your trade and your turnover. An aggregated account, which is what most payment apps offer, puts you under the provider's own acquiring instead. The first gives you your own pricing and more control; the second opens in days and asks fewer questions.
Which one you actually have
If you signed up online, took payments the same week and never saw an underwriting decision, you almost certainly have an aggregated account. If a provider asked for accounts, projected turnover and a merchant category code and gave you a merchant ID, that is a merchant account. Paymentsense's pricing tool asks for the merchant category precisely because it is quoting the second kind.
What each costs
Aggregated accounts advertise a single blended rate and no monthly fee: SumUp at 1.69%, Zettle and Square at 1.75%. Merchant accounts are quoted per business and typically carry a minimum monthly service charge, authorisation fees and a term. Lloyds Cardnet prints its minimum monthly charge; most of the others quote it privately.
When the paperwork is worth it
Above roughly 50,000 pounds of annual card turnover, bespoke pricing usually beats a blended rate, which is exactly the threshold Tyl by NatWest names on its own page as the point where it stops publishing. Below it the aggregated accounts are hard to beat on price and impossible to beat on speed of opening.
Questions people ask about merchant accounts
Do I need a merchant account to take card payments?
No. Aggregated accounts from payment apps let you take cards without one, which is why most small UK businesses now start that way. A merchant account becomes worth having as volume grows and bespoke pricing beats a blended rate.
How long does a UK merchant account take to open?
Underwriting typically takes days rather than minutes because the provider is assessing your trade and turnover. Aggregated accounts from the apps here usually open the same day, subject to identity checks.
Can I have a merchant account without a business bank account?
Some providers settle into an account they open for you, which is how Tide, Teya and Revolut Business work. Traditional acquirers settle to a UK business bank account in the same name as the merchant, so you will need one.