How long does it take to get a business credit card?

Depending on the provider, it could take a few days or a couple of weeks for the business credit card to arrive in the post. Once you submit your application it will need to be reviewed by the card issuer but that is normally approved quickly.

Is my credit record checked for a business credit card?

Yes, when you apply for a business credit card, credit card providers will typically assess both your business's credit record and your company’s overall financial health. If your business has limited or no credit history, the card issuer may also check your personal credit score to evaluate your creditworthiness.

Does using a business credit card affect my personal credit record?

Using a business credit card could affect your personal credit card, particularly if you're the main account holder. It's best to use a business credit card sensibly, as you would a personal credit card, If you're worried about repayments you should speak to the card provider as soon as possible.

Can I get a business credit card with rewards?

Yes, business credit cards with rewards are available. These cards often offer cashback, allowing you to earn a percentage of what you spend back. Other rewards may include air miles, travel points, or shopping vouchers, depending on the card provider. Choose a business credit card with rewards that aligns with your business's spending habits to maximise the benefits.

Can several employees have their own card?

Yes, you can get multiple corporate credit cards under one account, which allows selected employees to have their own cards while the business receives a single bill. Many providers also offer spending controls, so you can set limits and monitor expenses for each card.

Do I need a business current account to apply?

No, a business current account is not a requirement to apply for a business credit card. However, having one can simplify managing your finances, making it easier to pay your bills and keep business transactions separate from personal ones.

Can I get a business credit card as a startup?

Yes, startups can apply for a business credit card, and it can be a useful tool for managing cash flow during the early stages. However, since your business is new, you may be asked to provide additional information to prove your ability to meet repayment requirements. This could include a personal credit check, company financial statements, and details of any assets, which will help the provider determine your credit limit.

Can I check my eligibility before applying for a business credit card?

Many providers let you check your eligibility online before applying. This typically involves a soft credit check, which won’t affect your credit score, and will give you an idea of your chances of approval prior to any application.

Are business credit cards interest-free?

Business credit cards aren’t usually interest-free. However, many providers will offer an interest-free period on purchases if you pay off the balance in full each month. If you carry a balance, interest will apply, so it’s important to check the terms.

Can I get a business current account with bad credit?

Yes, it’s possible to get a business current account even if you have bad credit, though it may be more challenging. Some banks and financial institutions offer business accounts specifically designed for people with poor credit histories. These will sometimes come with fewer features, but can still help you manage your business finances effectively. To improve your chances of being accepted for an account, you can take steps to enhance your credit history, such as paying bills on time, reducing outstanding debt, and regularly checking your credit report for errors.

How long does it take to open a business bank account?

Opening a business bank account typically takes between one and four weeks, though the process can be faster depending on the bank and your business type. Some banks even offer same-day account opening. Factors that can affect the timeline include your business structure (sole traders usually take less time), your relationship with the bank, and the application method. Some banks offer faster services, and non-residents or high-risk businesses may experience longer processing times. Once your application is submitted, the bank will conduct background checks and may contact you for additional information.

Can I use a personal current account for my business transactions?

While it’s technically possible to use a personal current account for business transactions, it’s generally not recommended. Keeping personal and business finances separate helps you stay organised, track expenses more easily, and simplify tax reporting. If you run a limited company, using a business current account is a legal requirement because your company is considered a separate legal entity. Sole traders aren’t legally required to have a business account, but opening one can provide tailored features, such as accounting tools.

What fees can I expect with a business current account?

The fees for a business current account can vary depending on the bank and the account type. Common charges to look out for include: Monthly maintenance fees: A fixed charge for maintaining your account. Transaction fees: Costs for deposits, withdrawals, and payments. Overdraft charges: Fees for accessing overdraft facilities. International transfer fees: Charges for sending or receiving money abroad. Debit card usage fees: Costs for using your business debit card, especially abroad. Some business accounts may offer free banking for an introductory period, so it’s essential to carefully review the fee structure to find an account that matches your business needs and budget.

Are business bank accounts protected by FSCS?

Yes, business bank accounts are protected by the FSCS up to £85,000, provided the bank is FCA or PRA-authorised. For small businesses or limited companies, protection applies if the bank fails. Sole traders have combined protection with personal accounts under one £85,000 limit. For more complex claims, eligibility may vary depending on your business type. Check with your bank for specific coverage details.

Can I have multiple business current accounts?

Yes, you can have multiple business current accounts. This can be useful for managing different aspects of your finances, such as separating operational expenses from tax savings, or tracking revenue for different projects. If you run multiple businesses, separate accounts for each can simplify accounting and financial reporting.

Do I need to maintain a minimum account balance?

Whether you need to maintain a minimum balance depends on the specific business current account you choose. Some banks may require a minimum balance to avoid fees or to access certain account features, while others may be more flexible. Review the account’s terms and conditions or ask your provider directly if you're unsure.

Are there any limitations on the number of transactions or cash deposits I can make?

Many business current accounts have limits on free transactions or cash deposits each month. Exceeding these limits may incur fees. Some accounts also cap the maximum cash deposit per day or month. To avoid extra charges, review the account terms and choose one that suits your transaction volume.

What happens if I close my business?

If you close your business, notify your bank and close your business current account. The bank will guide you through the process, which will typically involve settling any outstanding payments or fees. Any remaining funds can be transferred to a personal account or another business account.

Am I guaranteed an overdraft with a business account?

No, getting an overdraft with a business current account isn’t guaranteed. Just like with personal accounts, you’ll need to pass a credit check to be approved, and the overdraft limit offered will depend on both your financial circumstances, and the bank’s assessment of your business. If you need an overdraft, it’s a good idea to speak directly with your account provider to explore available options and understand the terms, including any fees and interest rates that could apply.

Is my business eligible to use the Current Account Switch Service?

Your business may be eligible to use the Current Account Switch Service if it meets the following criteria: Fewer than 50 employees Annual turnover of £6.5 million or less Both your current and new banks are part of the switch guarantee scheme If you're unsure whether your business qualifies, contact your new bank for confirmation and guidance on the switching process.

Can I have a business current account if I'm a sole trader?

Yes, sole traders can open a business current account, just like partnerships and limited companies. Having a dedicated account is smart as it separates personal and business finances, simplifying income tracking, expenses, and tax management. Many banks offer accounts tailored to sole traders with features like accounting integrations, invoicing tools, and business support, helping you manage cash flow and prepare tax returns more easily.

Can I use my business current account for personal transactions?

Generally, it’s not advisable to use your business current account for personal transactions. Keeping business and personal finances separate helps maintain clear records, avoid tax complications, and ensures compliance with accounting standards. Mixing personal and business expenses can lead to confusion and potential legal issues, especially when it comes to taxes and audits. Additionally, it's worth noting that many banks prohibit the use of business accounts for personal purposes.

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How to accept credit card payments: a step-by-step guide

Accepting credit card payments as a small business

Written by Rachel Wait, Contributing writerEdited by Joe Phelan, Business finance editor, 31 March 2025

Fact Checked

Discover the steps you need to take to enable your business to accept credit card payments.

One of the biggest benefits of accepting credit card payments is that it can lead to increased sales.

Today’s increasingly cashless society means it’s essential for businesses to be able to accept card payments. Without them, you risk losing out on crucial sales.

This guide explains all you need to know.

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How to accept credit card payments: step-by-step

If you want to start accepting card payments, follow these steps:

1. Decide how to accept credit card payments

First, think about how you’re going to accept card payments. If you run your business online, you only need to accept online credit card payments.

But if you operate as a physical shop and have plans to start operating online, too, you need to be able to accept card payments in person and online. You might also want to accept payments over the phone.

2. Choose a payment provider

Next, you need to choose a payment provider. This is the intermediary between the business, the customer’s bank and the card network, and it completes the transfer of funds securely.

When comparing providers, do your research, looking at what each provider offers in terms of features and support, as well as fees. Popular payment providers include Stripe, PayPal and Square.

3. Open a merchant account

Once you’ve chosen your payment provider, follow its instructions for setting up a merchant account. This is a specialised bank account that allows your business to accept card payments.

Many payment providers offer merchant accounts as part of their package, but if yours doesn’t, you need to open one elsewhere.

4. Set up your payment system

How you do this depends on how you plan to accept card payments.

How to accept credit card payments online

If you want to accept online card payments, you need a payment gateway. This is the part of your website where customers input their payment information.

Your payment provider collects payment information from customer transactions and collaborates with the credit card networks and the issuing and receiving banks, so it can transfer the funds.

How to accept credit card payments in person

If you’re accepting card payments in person, you usually need a point-of-sale (POS) system. This is the hardware and software that allows businesses to accept payments. It can include a cash register, a connected device such as an iPad, a receipt printer and a barcode scanner, as well as a card reader or machine.

There’s a wide range of card payment solutions to choose from. If your business runs from a fixed location, a free-standing card machine at the counter is probably most suitable. But if you run a mobile hairdressing salon or are an electrician, for example, you may find a portable card machine works better.

Once you’ve selected a card reader, follow the instructions from your payment provider to set it up. Usually, you connect the card reader to your network and integrate it with your POS system.

How to accept credit card payments on the phone

If you also accept payments over the phone, you can usually enter the customer’s card details into your POS system, rather than the customer presenting their card.

5. Understand security and compliance

All businesses that accept card payments must comply with the Payment Card Industry Data Security Standard (PCI DSS) regulations. These ensure customers’ card information is kept as securely as possible, protecting your business and your customers from fraud and data breaches.

If your business accepts in-person payments, you must ensure your card machines comply with PCI standards, protect card readers from unauthorised use, and regularly update software
If you accept online card payments, you must use PCI-compliant payment gateways, encrypt data during transmission and storage, and use tools to detect and prevent fraudulent transactions
If you accept payments over the phone, you should use PCI-compliant virtual terminals to process payments and avoid storing card data where possible. If you need to store data, make sure it’s encrypted and limit access

6. Consider the costs

Finally, it’s important to have a clear idea of the costs involved. These can include:

Terminal costs: Some card machines charge a one-off upfront fee for buying or renting the payment terminal, while others charge a monthly fee
Transaction costs: You typically pay a percentage fee for each transaction of 1.5% to 3.5%. If you accept American Express payments, fees are usually higher
Authorisation fees: Your payment provider needs to authorise the transaction with the issuing bank, and this incurs another fee
Merchant account fees: You may need to pay a fee for your merchant account
Payment gateway fees: Some payment gateways charge a one-off fee, but you may have to pay a monthly subscription
Early exit fee: If your payment provider ties you into a contract, you may have to pay a fee to leave the deal early
Chargeback fees: If a customer raises a dispute about a transaction, you may need to carry out a chargeback, which incurs a fee
Refund fees: In some cases, you may have to pay a fee to process a refund
Foreign transaction fees: If you accept foreign credit cards and convert the currency, a fee usually applies

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Benefits of accepting credit card payments

With more people than ever using cards instead of cash, accepting card payments can lead to increased sales. Customers are also more likely to make impulse purchases when they can pay by card, boosting your revenue.

Additional benefits include the fact that your business looks more professional, and it’s more convenient for your customers. It’s also essential to accept card payments if you run your business online. Credit cards also reduce the risks of theft and human error associated with handling cash.