• Accessibility statement [Accesskey '0']
  • Skip to Content [Accesskey 'S']
  • Skip to site Navigation [Accesskey 'N']
  • Go to Home page [Accesskey '1']
  • Go to Sitemap [Accesskey '2']
Bank of Scotland logo
Search
  • Personal
  • Business
  • Private Banking
Bank of Scotland logo
  • Search
  • Register for internet banking
  • Help and support for business banking
  • Login to your online banking

    Online Banking

    Business Internet Banking

    Commercial Banking Online

    About Internet Banking
  • Products and services
    • Business accounts

      Products

      • Business accounts

      • Apply for a Business Account

      • Switch to Bank of Scotland

      • Community accounts

      • Client accounts

      Existing Customers

      • Manage account access

      • Product terms and conditions

      • Rates and charges

      • Help & Support

      • Business Debit Card

      • Business Key Card

      • Overdraft

      Find out more

      • Starting a business

      • Writing your business plan

      • Statements for closed accounts

      • Help with bereavement

      • Accessibility and disability

    • Savings

      Products

      • View all savings accounts

      • Instant Access Account

      • Fixed Term Deposit Account

      • Notice Accounts

      • Client accounts

      Existing customers

      • Manage your savings accounts

      • Useful forms

      Find out more about

      • Manage returns on your savings

      • Financial Services Compensation Scheme

      • Savings Strategy Tool

      • Accessibility and disability

    • Making payments

      Products

      • View all payment services

      • International payments

      • Bulk Payments

      • Bacs Payments

      Existing Customers

      • Faster Payments

    • Take payments with Cardnet®

      Secondary Navigation 'Take payments with Cardnet®' links to /content/bos/en-gb/business/payment-services/cardnet

    • Accounting software

      Products

      • View our accounting software

      Existing customers

      • Log on to Business Finance Assistant

      • Get more from Business Finance Assistant

    • Credit and Charge Cards

      Products

      • Credit Card

      • Charge Card

      Existing customers

      • Existing card customer support

      • Lost or stolen cards

      Find out more

      • Why use a business card

      • Merchant Services

    • Business Loans

      Products

      • View all Business Loans

      • Small business loans

      • Commercial Mortgages

      • Government-backed lending schemes

      Find out more

      • Managing interest rate risk

      • Finance application checklist

      • Lending process

      • Lending appeals

      • Lending support and standards

      • Ranking agreement

    • Asset Finance

      Products

      • View all asset finance products

      • Vehicle Contract Hire

      • Apply or enquire about asset finance

    • Overdrafts

      Products

      • Business Overdraft

      Find out more

      • Finance application checklist

      • Lending process

      • Lending appeals

      • Lending support and standards

      • Ranking agreement

    • Invoice Finance

      Products

      • View finance liquidity products

    • International trade

      Products

      • View all international products

      • Import and export products

      • International Payments

      • Foreign exchange

      • Currency accounts

      Find out more

      • Managing international-trade risk

      • Product Selector

      • International Rates and Charges

    • Insurance

      Products

      • View all business insurance products

      • Public Liability Insurance

      • Landlord Insurance

      • Professional Indemnity Insurance

      • Shop Insurance

      Find out more

      • Insurance contact directory

  • Corporate solutions
    • Sustainability

      Financing a sustainable future

      • View all sustainable business solutions

      • Clean growth financing

      • Energy-efficiency tool

      • Lex Autolease® electric vehicles

      Find out more

      • Sustainability Voices: Valuable Insights & Expert Opinion

    • Working capital

      Managing operating finance

      • View all working capital solutions

      • Release funds against assets

      • Trade and working capital solutions

      • Supplier finance

      • Overdraft

      • Corporate card solutions

    • Financing

      Funding growth

      • View all financing solutions

      • Lending

      • Clean Growth Financial Initiative

      • Capital markets

      • Corporate Asset Finance

      • Fleet Finance - Lex Autolease®

      • Private Equity

      Specialist finance teams

      • Our specialist finance teams

    • Liquidity & accounts

      Cash deposits & liquidity management

      • View all liquidity solutions

      • Fixed Term Deposit

      • Corporate Instant Access Account

      • Notice Accounts

      • Monthly Bonus Account

      • Pooling and Sweeping

    • Risk management

      Solutions

      • View all risk management solutions

      • Managing the cost borrowing

      • Managing currency fluctuations

      • Managing price moves

      • Trade risk

      • Debtor Protection

      • Financial risk advisory

      • Corporate cards

    • Cash management

      Solutions

      • View all cash management solutions

      • Current accounts

      • Payment solutions and cash sales

      • Card solutions

      • Client money channels

      • Foreign exchange

      • Online services

    • Card solutions

      Secondary Navigation 'Card solutions' links to /content/bos/en-gb/business/corporate-banking/working-capital/corporate-cards

    • Payments

      Making & Receiving Payments

      • View all payment solutions

      • Domestic payments

      • International payments

      • Online services and API solutions

    • International trade

      Solutions

      • View all international trade solutions

      • Importing and exporting

      • International cash management

      • Trading in China

      Find out more

      • International Trade Portal

      • Risk management

    • Contact us

      Secondary Navigation 'Contact us' links to /content/bos/en-gb/business/25m-plus-turnover/contact-us.html

    • Online services

      Online services

      • Arena

      • Commercial Banking Online

      • Commercial Cards Internet Servicing CCIS

    • Banking with us

      Secondary Navigation 'Banking with us' links to /content/bos/en-gb/business/25m-plus-turnover/banking-with-us

    • Commercial terms
      • Home

      • About your account

      • Interest rates and charges

      • Core Banking Agreement

  • Industry expertise
    • Sectors
      • Manufacturing

      • Retail

      • Professional services

      • Real Estate & Housing

      • Charities & not-for-profits

      • Agriculture

      • Education

      • Healthcare

      • Introducers

    • Backing Scottish business

      Secondary Navigation 'Backing Scottish business' links to /content/bos/en-gb/business/25m-plus-turnover/regional-expertise

    • Corporate & Institutional sectors
      • Asset & Wealth Managers

      • Banks & Specialist Finance

      • Consumer & Technology

      • Financial Sponsors

      • Infrastructure, Energy & Industrials

      • Insurance & Group Subsidiaries

      • Real Estate & Housing

      • Services & Public Sector

      • Sustainability & ESG Financing

    • Contact us

      Secondary Navigation 'Contact us' links to /content/bos/en-gb/business/25m-plus-turnover/contact-us

    • Commercial Finance Brokers

      Secondary Navigation 'Commercial Finance Brokers' links to /content/bos/en-gb/business/industry-specialists/introducers

    • Franchising

      Secondary Navigation 'Franchising' links to /content/bos/en-gb/business/industry-specialists/franchising

  • Business Resource Centre
    • Managing business costs and uncertainty
      • Managing business costs and uncertainty

      • Inflation, costs and cash flow

      • Financial worries support

      • Build mental resilience

      • Business change

    • Build mental resilience

      Secondary Navigation 'Build mental resilience' links to /content/bos/en-gb/business/managing-business-costs/mental-resilience

    • Sustainability
      • Visit our sustainable business hub

      • Getting started

      • Sustainable finance products

      • Sustainability insight and guidance

    • Supporting Black-owned businesses

      Secondary Navigation 'Supporting Black-owned businesses' links to /content/bos/en-gb/business/business-resource-centre/guidance/supporting-black-owned-businesses

    • Supporting women-owned businesses

      Secondary Navigation 'Supporting women-owned businesses' links to /content/bos/en-gb/business/business-resource-centre/guidance/supporting-women-owned-businesses

    • Insights and ideas

      Secondary Navigation 'Insights and ideas' links to /content/bos/en-gb/business/business-resource-centre/insights-and-ideas

    • Business guidance
      • Starting a business

      • Managing your business

      • Growing your business

      • Build mental resilience

      • Digital Knowhow

      • Fraud prevention

      • Cyber risk

    • Case studies

      Secondary Navigation 'Case studies' links to /content/bos/en-gb/business/business-resource-centre/case-studies

  • Online Banking
    • Business Internet Banking

      Business Internet Banking

      • How to register

      • Mobile banking

      • What you can do online

      • Online payment control

      • Extra security checks when you bank and shop online

      Help and guidance

      • How to log in

      • Manage access to Business Internet Banking

      • Deposit cheques

      • Help & Support

    • Commercial Banking Online

      Secondary Navigation 'Commercial Banking Online' links to /content/bos/en-gb/business/25m-plus-turnover/online-services/commercial-banking-online

    • Accounting software

      Secondary Navigation 'Accounting software' links to /content/bos/en-gb/business/accounting-software

    • Arena

      Secondary Navigation 'Arena' links to /content/bos/en-gb/business/international/arena

    • Banking online services

      Secondary Navigation 'Banking online services' links to /content/bos/en-gb/business/online-banking

    • Ways to bank

      Secondary Navigation 'Ways to bank' links to /content/bos/en-gb/business/online-banking/alternative-ways-to-bank

  • Products and services click to go to sub menu of Products and services
  • Corporate solutions click to go to sub menu of Corporate solutions
  • Industry expertise click to go to sub menu of Industry expertise
  • Business Resource Centre click to go to sub menu of Business Resource Centre
  • Online Banking click to go to sub menu of Online Banking
  • Back

  • Business accounts Business accounts collapsed

    Products

    • Business accounts

    • Apply for a Business Account

    • Switch to Bank of Scotland

    • Community accounts

    • Client accounts

    Existing Customers

    • Manage account access

    • Product terms and conditions

    • Rates and charges

    • Help & Support

    • Business Debit Card

    • Business Key Card

    • Overdraft

    Find out more

    • Starting a business

    • Writing your business plan

    • Statements for closed accounts

    • Help with bereavement

    • Accessibility and disability

  • Savings Savings collapsed

    Products

    • View all savings accounts

    • Instant Access Account

    • Fixed Term Deposit Account

    • Notice Accounts

    • Client accounts

    Existing customers

    • Manage your savings accounts

    • Useful forms

    Find out more about

    • Manage returns on your savings

    • Financial Services Compensation Scheme

    • Savings Strategy Tool

    • Accessibility and disability

  • Making payments Making payments collapsed

    Products

    • View all payment services

    • International payments

    • Bulk Payments

    • Bacs Payments

    Existing Customers

    • Faster Payments

  • Take payments with Cardnet®
  • Accounting software Accounting software collapsed

    Products

    • View our accounting software

    Existing customers

    • Log on to Business Finance Assistant

    • Get more from Business Finance Assistant

  • Credit and Charge Cards Credit and Charge Cards collapsed

    Products

    • Credit Card

    • Charge Card

    Existing customers

    • Existing card customer support

    • Lost or stolen cards

    Find out more

    • Why use a business card

    • Merchant Services

  • Business Loans Business Loans collapsed

    Products

    • View all Business Loans

    • Small business loans

    • Commercial Mortgages

    • Government-backed lending schemes

    Find out more

    • Managing interest rate risk

    • Finance application checklist

    • Lending process

    • Lending appeals

    • Lending support and standards

    • Ranking agreement

  • Asset Finance Asset Finance collapsed

    Products

    • View all asset finance products

    • Vehicle Contract Hire

    • Apply or enquire about asset finance

  • Overdrafts Overdrafts collapsed

    Products

    • Business Overdraft

    Find out more

    • Finance application checklist

    • Lending process

    • Lending appeals

    • Lending support and standards

    • Ranking agreement

  • Invoice Finance Invoice Finance collapsed

    Products

    • View finance liquidity products

  • International trade International trade collapsed

    Products

    • View all international products

    • Import and export products

    • International Payments

    • Foreign exchange

    • Currency accounts

    Find out more

    • Managing international-trade risk

    • Product Selector

    • International Rates and Charges

  • Insurance Insurance collapsed

    Products

    • View all business insurance products

    • Public Liability Insurance

    • Landlord Insurance

    • Professional Indemnity Insurance

    • Shop Insurance

    Find out more

    • Insurance contact directory

  • Sustainability Sustainability collapsed

    Financing a sustainable future

    • View all sustainable business solutions

    • Clean growth financing

    • Energy-efficiency tool

    • Lex Autolease® electric vehicles

    Find out more

    • Sustainability Voices: Valuable Insights & Expert Opinion

  • Working capital Working capital collapsed

    Managing operating finance

    • View all working capital solutions

    • Release funds against assets

    • Trade and working capital solutions

    • Supplier finance

    • Overdraft

    • Corporate card solutions

  • Financing Financing collapsed

    Funding growth

    • View all financing solutions

    • Lending

    • Clean Growth Financial Initiative

    • Capital markets

    • Corporate Asset Finance

    • Fleet Finance - Lex Autolease®

    • Private Equity

    Specialist finance teams

    • Our specialist finance teams

  • Liquidity & accounts Liquidity & accounts collapsed

    Cash deposits & liquidity management

    • View all liquidity solutions

    • Fixed Term Deposit

    • Corporate Instant Access Account

    • Notice Accounts

    • Monthly Bonus Account

    • Pooling and Sweeping

  • Risk management Risk management collapsed

    Solutions

    • View all risk management solutions

    • Managing the cost borrowing

    • Managing currency fluctuations

    • Managing price moves

    • Trade risk

    • Debtor Protection

    • Financial risk advisory

    • Corporate cards

  • Cash management Cash management collapsed

    Solutions

    • View all cash management solutions

    • Current accounts

    • Payment solutions and cash sales

    • Card solutions

    • Client money channels

    • Foreign exchange

    • Online services

  • Card solutions
  • Payments Payments collapsed

    Making & Receiving Payments

    • View all payment solutions

    • Domestic payments

    • International payments

    • Online services and API solutions

  • International trade International trade collapsed

    Solutions

    • View all international trade solutions

    • Importing and exporting

    • International cash management

    • Trading in China

    Find out more

    • International Trade Portal

    • Risk management

  • Contact us
  • Online services Online services collapsed

    Online services

    • Arena

    • Commercial Banking Online

    • Commercial Cards Internet Servicing CCIS

  • Banking with us
  • Commercial terms Commercial terms collapsed
    • Home

    • About your account

    • Interest rates and charges

    • Core Banking Agreement

  • Sectors Sectors collapsed
    • Manufacturing

    • Retail

    • Professional services

    • Real Estate & Housing

    • Charities & not-for-profits

    • Agriculture

    • Education

    • Healthcare

    • Introducers

  • Backing Scottish business
  • Corporate & Institutional sectors Corporate & Institutional sectors collapsed
    • Asset & Wealth Managers

    • Banks & Specialist Finance

    • Consumer & Technology

    • Financial Sponsors

    • Infrastructure, Energy & Industrials

    • Insurance & Group Subsidiaries

    • Real Estate & Housing

    • Services & Public Sector

    • Sustainability & ESG Financing

  • Contact us
  • Commercial Finance Brokers
  • Franchising
  • Managing business costs and uncertainty Managing business costs and uncertainty collapsed
    • Managing business costs and uncertainty

    • Inflation, costs and cash flow

    • Financial worries support

    • Build mental resilience

    • Business change

  • Build mental resilience
  • Sustainability Sustainability collapsed
    • Visit our sustainable business hub

    • Getting started

    • Sustainable finance products

    • Sustainability insight and guidance

  • Supporting Black-owned businesses
  • Supporting women-owned businesses
  • Insights and ideas
  • Business guidance Business guidance collapsed
    • Starting a business

    • Managing your business

    • Growing your business

    • Build mental resilience

    • Digital Knowhow

    • Fraud prevention

    • Cyber risk

  • Case studies
  • Business Internet Banking Business Internet Banking collapsed

    Business Internet Banking

    • How to register

    • Mobile banking

    • What you can do online

    • Online payment control

    • Extra security checks when you bank and shop online

    Help and guidance

    • How to log in

    • Manage access to Business Internet Banking

    • Deposit cheques

    • Help & Support

  • Commercial Banking Online
  • Accounting software
  • Arena
  • Banking online services
  • Ways to bank
  • Home
  • ...
    • Business Resource Centre
    • Business Guidance
    • How online payments work

    How online payments work: a step-by-step guide

    Read time: 5 mins Added: 27/10/2023

    Online payments provide a means of getting money from your customer or donor to your bank account.

    It’s worth taking the time to understand how an online transaction process works. You will then know how long it will take and what is involved. But first, you’ll need to understand some of the terminology involved.

    Online payments allow you to easily make and receive payments from your customers or suppliers. This guide sets out the process and how long payments take.

    Important terms

    A merchant account is an account that exclusively holds funds from card transactions. These funds are regularly transferred to your organisation’s bank account by your Merchant Acquirer.

    An Issuer / Issuing bank is the bank (or financial institution) that issued a customer with their card and maintains a contract with them for repayment of card transactions.

    A payment gateway is a service provider, often referred to as a Payment Service Provider (PSP). It links your website’s shopping basket or donor form to the card processing network. Bank of Scotland Cardnet has a Payment Gateway platform that supports this requirement.

    You must choose a suitable Payment Gateway to meet your business's initial and future needs. Ideally, it should support tokenisation which enables your customers to securely store their card details in a virtual wallet to simplify payment at your checkout.

    Fraudsters regularly target ecommerce websites so choose a Gateway with good fraud management.

    A Merchant Acquirer will handle the transaction, moving it through the processing network. They will also send you a billing statement.

    How the process works

    1. Your customer buys an item on your website with a credit or debit card, or with Google Pay® or Apple Pay®.
    2. Their personal details and card information then pass through the payment gateway. Their data is encrypted to protect it before forwarding it to the merchant acquirer.
    3. The merchant acquirer sends a request to the customer’s issuing bank for funds to pay for the items or services they wish to purchase.
    4. The issuer will either approve or refuse the transaction.
    5. If approved, the result is passed back through the payment gateway to advise that:
      • the transaction is accepted
      • your merchant acquirer should credit your account.

      The customer will then be told whether or not their payment is accepted.
      If the payment is refused, you can simply cancel the purchase with the buyer, or request an alternative card or payment method.
      This entire first part of the process takes place within a few seconds. The second part, known as settlement, can take up to a few days.

    6. The card issuer sends the funds to your merchant acquirer, which deposits the money into your bank account.
    7. The funds are now available for you to use. Your bank may let you access your money before it is even sent to them, but this can vary between banks and accounts.

    Your bank may also ringfence some of the money in your account so that you can’t yet spend it. This is known as a reserve. It’s done in case the customer decides to return the goods later. Under the Distance Selling Regulations, customers have the right to change their minds within 14 days.

    When considering provider options, make sure you fully understand the charges

    These can include:

    • a Merchant Service Charge (MSC)
    • set up fees
    • monthly fees.

    Make sure your customers’ money is safe.

    This should inform your decisions about how you build your website, which providers you select and how they integrate.

    Some solutions have secure built-in payment software modules that connect to secure payment gateways. 

    If you haven’t chosen a packaged approach you should select secure, third-party payment software. They’re vital when it comes to protecting your customers' payment details. Options include Google Wallet®† or Paypal†.

    There are also secure payment options designed specifically for non-profit organisations. Options for accepting donations include Blackbaud† and DonorPerfect†.

    † These are just examples of the types of software available and Bank of Scotland does not endorse the services they provide.

    Cardnet® is a registered trademark of Lloyds Bank plc.
    Google Pay® is a registered trademark of Google LLC.
    Apple Pay® is a registered trademark of Apple inc.

    While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Bank of Scotland for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance.

    Important legal information

    Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ.  Registered in Scotland no. SC327000. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 169628.

    Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS).

    Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.

    Lloyds Banking Group is a financial services group that incorporates a number of brands including Bank of Scotland. More information on Lloyds Banking Group can be found at lloydsbankinggroup.com.

    © Bank of Scotland plc 2025. All rights reserved

    • Print
      • share on Twitter
      • share on Linkedin
      • share on Facebook

    Existing customers

    • Help and support details
    • Contact us

    Bank with us

    • Find a branch
    • Terms and conditions
    • Rates and Charges
    • Legal and regulatory

    About Bank of Scotland

    • About Bank of Scotland
    • Lloyds Banking Group
    • Careers
    Find out how we work with the FSCS to protect your deposits.
    Legal information Privacy Security Cookies Accessibility Sitemap Modern Slavery Statement (PDF, 2.5 MB) PDF opens in new window
    Visit the Bank of Scotland Facebook page. Opens in a new browser window.
    Visit the Bank of Scotland Linkedin page. Opens in a new browser window.
    Visit the Bank of Scotland Twitter page. Opens in a new browser window.