In short: A merchant account is a dedicated account in your business name for processing card payments, usually giving lower rates and more control but slower setup and approval. A payment facilitator, like SumUp or Square, pools many sellers under one account, offering instant sign-up and simple pricing with less control and quicker onboarding.
Why can you start taking payments with SumUp in minutes, but a traditional merchant account takes days? It comes down to two different models.
Payment facilitator (PayFac)
SumUp, Square and Zettle are payment facilitators. You sit under their master merchant account, so sign-up is fast and there's no separate underwriting. Trade-off: flat-rate pricing and less negotiation.
Traditional merchant account
Worldpay, Barclaycard and bank acquirers give you your own merchant account. Set-up involves underwriting and takes longer, but you can negotiate bespoke rates - better at higher volumes.
FAQs
Is SumUp a merchant account?
No. SumUp is a payment facilitator, not a traditional merchant account. It processes your payments under its own master account, so you can start taking cards almost immediately without a separate application. The trade-off is less control and flat pricing rather than a negotiated rate.
Which is cheaper, a merchant account or a payment facilitator?
It depends on volume. Payment facilitators have no setup hurdles and simple flat fees, which suits lower or irregular sales. A dedicated merchant account can offer lower per-transaction rates that save money once you process high, steady volumes, despite extra account and setup costs.
How long does it take to set up a merchant account?
A traditional merchant account can take several days to a few weeks, as the provider reviews your business, trading history and risk. Payment facilitators like Square and Zettle are far quicker, often letting you sign up and take payments the same day.
Reviewed by Nathan Keeble - Founder, The POS
Independent UK payments research. We research the pricing, read the small print and write it up in plain English.