When Should a Business Move Beyond a Single Payment Provider?

In the PSR's 2021 review, switching card-acquiring provider could bring costs from the POS terminal contract, because a merchant cannot typically continue to use an existing POS terminal with a new card-acquirer, and termination fees may apply if they cancel their existing POS terminal contract (1). The gateway providers the PSR asked said their products are 'acquirer agnostic', integrated with generally between five and 15 UK acquirers. Check these conditions before deciding whether to add or switch provider.

Which contract and integration conditions decide whether I can add or move to another card-acquiring provider?

Start with your payment gateway, because gateway providers told the PSR their products are acquirer agnostic and that configuring a small or medium-sized merchant's gateway for a new acquirer is straightforward and free of charge (1). In its 2021 review of UK card-acquiring services, the Payment Systems Regulator (PSR) reported that gateway providers describe their products as "acquirer agnostic", integrated with generally between five and 15 UK acquirers. They also said that configuring a small or medium-sized merchant's gateway for a new acquirer is straightforward and that they would help with this at no charge.

Some acquirers' own payment gateways are not compatible or integrated with card-acquiring services provided by other acquirers (1). Where that is the case, the PSR found those gateway contracts usually have no initial term or an initial term of less than 12 months, so the lock-in is short.

The terminal contract is where switching costs tend to appear (1). If you cancel the terminal contract early, termination fees may apply. In some of the contracts the PSR reviewed, these fees included the total value of outstanding payments up to the end of the initial term, plus administrative fees. Once the initial term ends, the contract usually renews on a rolling one-month basis or for fixed terms, and in fixed-term contracts you can only leave at the end of a renewal term, after giving the notice the contract requires.

The PSR's figures on gateway integrations and termination fees come from its 2021 review of UK card-acquiring services and describe card acquiring, not every payment method (1). Where the gateway you use is an acquirer's gateway that is integrated with the second provider's card-acquiring services, the PSR found that merchants switching to that acquirer do not pay additional fees. The PSR also found that merchants can face costs from their POS terminal contract even where cancelling the card-acquiring contract carries no termination fee. The PSR review passage on payment gateways covers integration with acquirers (generally between five and 15 in the UK) and contracts with no initial term or an initial term of less than 12 months, so this article sets out only those contract and integration conditions and does not say when a single provider stops being enough.

Switching costs at a glance

• between five and 15 Acquirers a gateway provider integrates with — Gateway providers said their acquirer-agnostic product is generally integrated with this many UK acquirers. Configuring a small or medium-sized merchant's gateway for a new acquirer is straightforward and free of charge.
• less than 12 months Initial term on gateways not compatible with other acquirers — Where an acquirer's gateway is not compatible with other acquirers' card-acquiring services, the contracts usually have no initial term or one shorter than this.
• between £10 and £40 Typical terminal rental per terminal per month — Merchants typically rent POS terminals within this range. Early termination fees may apply when a merchant cancels a terminal contract to switch provider.

What pricing and onboarding information should I get from a second provider before comparing it with my current one?

Do not compare headline rates on their own (1). The PSR heard from one acquirer and one independent sales organisation that comparing headline rates can mislead, because it ignores the additional fees acquirers charge for card-acquiring services. Merchants can also find it hard to work out what they are paying from the statements their provider sends (1).

Regulation 48 of the Payment Services Regulations 2017 requires payment service providers, including acquirers and payment facilitators, to give you details of all charges payable and, where applicable, a breakdown of them before you enter a contract (1). Regulation 54 requires them to give transaction information, including the amount and any breakdown of transaction charges. Under the IFR, acquirers must offer and charge merchant service charges broken down by card category and brand, and can charge a blended rate only if the merchant has first requested that in writing.

Expect the second provider to run onboarding checks as well (1). Acquirers carry out due diligence when they onboard a merchant and on an ongoing basis, including know-your-customer and anti-money-laundering checks.

Regulation 48 and 54 information rules can be varied: business customers can agree different terms through the corporate opt-out, so check what your own contract says (1). Under regulation 54 of the Payment Services Regulations 2017, the information you receive on each transaction must include any breakdown of the transaction charges payable.

Pricing and onboarding checks before comparing a second card-acquiring provider

Which authentication, liability and dispute rules apply to payments handled by any provider I add?

Every provider you add must apply strong customer authentication (2). Regulation 100 of the Payment Services Regulations 2017 requires a payment service provider to apply it when a user initiates an electronic payment transaction. For electronic remote payments, the authentication must dynamically link the transaction to a specific amount and a specific payee. The Financial Conduct Authority (FCA) states in its Payment Services and Electronic Money approach guidance of March 2026 that all payment service providers must comply with regulation 100 and with the SCA-RTS (3).

Where a provider's liability is attributable to another provider or an intermediary, including through a failure to use strong customer authentication as required by regulation 100, that other party must compensate the first provider under regulation 95 (2). Under regulation 76(6), if the payee or the payee's provider does not accept strong customer authentication where it is required, they must compensate the payer's provider for the losses.

For card disputes, the issuer raises a chargeback if it considers the cardholder has the right to dispute a transaction, for example where goods are not delivered or a payment appears fraudulent (1). The acquirer carries the credit risk if it cannot recover the amount it must pay the issuer, which can happen if the merchant becomes insolvent or acts fraudulently.

Sources

1. Market review into card-acquiring services: Final report MR18/1.8, Payment Systems Regulator, November 2021
2. The Payment Services Regulations 2017, legislation.gov.uk, accessed 10 November 2026
3. Payment Services and Electronic Money – Our Approach – March 2026 (version 7), Financial Conduct Authority, accessed 10 November 2026