Selling online changes what you need from a business account. Money arrives in batches from marketplaces and payment processors rather than from one customer at a time, stock is often bought from abroad, and your tax records have to line up with what the platforms report. The right account makes all of that routine. The wrong one costs you in transfer fees and currency margins.
This guide sets out what an online business should look for, explains the difference between a bank account and an e-money account, and compares six UK options side by side. Fees and plans change, so figures are as published by each provider in November 2026.
What an online business needs from a business account
The best business account for an online seller is the one that matches how your money actually moves. Marketplaces such as Amazon, eBay and Etsy, and payment processors, pay out to the account details you give them, so the account sits at the centre of your sales, refunds and costs. It also keeps that money apart from your own. For a limited company that is a legal requirement, because the company is a separate legal entity. Sole traders are not legally required to open a separate account, but it makes your records far easier to follow.
Five things matter most for an online business:
- Cheap incoming payments. Check whether the account charges for receiving money, and how many free transfers you get each month. Online sellers move a lot of small amounts.
- Currency. If you sell to customers abroad or buy stock from overseas suppliers, check which currencies you can hold and receive, and what a conversion costs.
- Payment tools. Payment links, QR codes and invoices help if you take orders by message, sell at markets or invoice trade customers.
- Accounting and tax tools. Since 1 January 2024, digital platforms may have to report sellers' income to HMRC. Sellers with fewer than 30 sales of goods in a year and under about £1,700 in sales are not reported. A report does not automatically mean you owe tax, but your own records need to match it, so an account that connects to accounting software saves time.
- Money protection. Know whether the provider is a bank or an e-money firm, because the protection differs.
Bank account or e-money account: what is the difference?
Both kinds of provider are regulated by the Financial Conduct Authority, but they are not the same thing, and the difference affects what happens to your money if the provider fails.
A bank account is held with a bank that is authorised by the Prudential Regulation Authority. If the bank fails, the Financial Services Compensation Scheme (FSCS) protects eligible deposits up to £120,000 per person per bank, a limit that rose from £85,000 on 1 December 2025.
An e-money account is issued by an electronic money institution. It works like a current account day to day, but your money is safeguarded rather than protected by the FSCS: it is held separately from the provider's own funds. Some platforms sit in between. Tide, for example, is not a bank itself, but its current accounts are provided by ClearBank, a bank, so eligible deposits are FSCS protected.
Neither type is automatically better. What matters is that you know which one you are opening and that the protection matches how much money you plan to hold.
Business accounts for online businesses compared
The table below puts six accounts side by side. ANNA is listed first, followed by the other five in a fixed order. Check each provider's current tariff before you apply.
Provider Type Monthly fee Good to know If the provider fails
ANNA
E-money institution
£0 on the Free plan; paid plans from £12.90 + VAT
Connects to Shopify, Etsy, Amazon, eBay and WooCommerce; free USD, EUR and CHF accounts
Safeguarded: held separately from company funds (FSCS does not apply)
Starling
Bank
£0
No fees on UK payments in or out; free invoicing
FSCS up to £120,000
Monzo
Bank
£0 on Lite; Pro £9
Lite files to HMRC for Making Tax Digital; payment links
FSCS up to £120,000
Tide
Platform; accounts provided by ClearBank (a bank)
£0 on Free; Smart £12.49
Payment links on every plan; 0% FX fee on card payments abroad from Smart
FSCS up to £120,000 via ClearBank
Revolut
Bank
From £10 (no free plan)
25+ currencies with local account details; payment links and Revolut Pay
FSCS up to £120,000
Wise
E-money institution
No monthly fee; one-off £50 set-up fee
Receive in 22 currencies; exchange at the mid-market rate
Safeguarded: held separately from Wise's own funds (FSCS does not apply)
The six accounts in more detail
ANNA
ANNA suits online sellers who want sales, accounting and tax in one place. It connects to Shopify, Etsy, Amazon, eBay, WooCommerce and Stripe, and offers payment links with QR codes. The Free plan costs £0 and includes one card and unlimited outgoing transfers. The first £1,000 of incoming payments each month is free, then 0.95% applies, which is worth checking if most of your income arrives by transfer. Paid plans start at £12.90 a month plus VAT for Grow, which includes 15 transfers a month and two cards.
Auto Accountant, ANNA's AI accounting and tax tool recognised by HMRC, is free for the first four months and then £29 a month plus VAT. It handles Corporation Tax, VAT returns and Self Assessment. Currency accounts in USD, EUR and CHF, each with its own IBAN, are free on every plan, which helps if you sell or buy abroad. ANNA is available to UK residents.
ANNA is an e-money business account, not a bank. The account is issued by PayrNet Limited, which is authorised by the FCA, and your money is safeguarded: held separately from company funds and never lent out or invested. It is not covered by the FSCS.
Starling
Starling is a licensed UK bank with no monthly fee and no fees on UK payments in or out, which suits a seller whose sales and costs are mostly in pounds. Invoicing is free, it connects to Xero, QuickBooks and FreeAgent, and you can order up to five expense cards for your team at no cost. Spending and cash withdrawals abroad carry no fees from Starling, and you can send payments to accounts in 34 countries. The limits: payment links are not among its listed features, and you need to be UK-based and at least 18 to apply.
Monzo
Monzo is a UK bank. Its Lite plan is free, offers payment links and files directly to HMRC for Making Tax Digital. Pro costs £9 a month, with the first month free, and adds invoicing, tax pots that set money aside automatically, and connections to Xero and other bookkeeping tools. Team starts from £25 a month and adds expense cards. Only sole traders and limited company directors based in the UK can apply, and invoicing and accounting connections sit behind the paid plans, so a seller who wants them should budget for Pro.
Tide
Tide is not a bank. It is an FCA-authorised e-money firm, and its current accounts are provided by ClearBank, so eligible deposits are covered by the FSCS up to £120,000. Payment links are available on every plan, and the free Making Tax Digital tools suit sellers who file their own returns. The Free plan includes five transfers a month, then 20p each, and charges a 2.75% fee on international card payments, which adds up if you pay overseas suppliers by card. Smart costs £12.49 a month, removes that card fee and raises the transfer allowance. Pro costs £27.49.
Revolut
Revolut Business became a UK bank in March 2026, so eligible deposits are FSCS protected up to £120,000. It is built for cross-border trade: more than 25 currencies, local account details to receive money, and exchange at the interbank rate up to a monthly allowance (£1,000 on the Basic plan), then a 0.6% fee. Payment links, QR codes, Revolut Pay and invoicing are included, with card acceptance fees from 0.8% plus 2p. There is no free plan: Basic costs £10 a month and includes 10 free local transfers, then 20p each. Revolut does not file taxes for you, so you will connect Xero, Sage or QuickBooks.
Wise
Wise Business is an international account first. There is no monthly fee. A one-off £50 set-up fee unlocks every feature, including receiving money in 22 currencies, payment links, invoices and card payments. Wise does not mark up the mid-market exchange rate, which is a real saving for a seller who converts regularly. It suits businesses paying overseas suppliers or collecting foreign payments, and it works well alongside a UK account for everyday costs. Wise is an FCA-authorised e-money institution, so funds are safeguarded but not covered by the FSCS, and tax work happens in connected software such as Xero, QuickBooks or FreeAgent.
Which account suits which kind of online seller
- Marketplace seller, mostly in pounds: Amazon, eBay and Etsy payouts to a sterling account are routine, so low transfer fees matter most. Starling and Monzo Lite charge no monthly fee, and ANNA adds tax tools if you want them.
- Shopify or WooCommerce store: look for payment links and store connections. ANNA, Tide and Revolut all offer payment links, and ANNA connects to both store platforms.
- Selling or sourcing abroad: currency handling decides it. Compare Wise, Revolut and ANNA's USD, EUR and CHF accounts, and work out what a typical month of conversions would cost.
- Very small side business: a free plan is enough to start, but check the allowances. Tide's Free plan includes five transfers a month, and ANNA's Free plan charges 0.95% on incoming payments above £1,000 a month.
Costs that catch online sellers out
Headline monthly fees tell you little about what an online business pays. Four things add up fastest:
- Transfer allowances. Free plans cap the number of transfers, then charge per payment: 20p on Tide Free and Revolut Basic, 27p on ANNA Grow. A seller paying many small suppliers or refunding customers can hit the cap quickly.
- Fees on incoming money. A plan that charges for receiving payments, as ANNA's Free plan does above £1,000 a month, changes the sums for a growing shop.
- Currency conversion. Margins differ widely: Tide Free charges 2.75% on international card payments, Revolut charges 0.6% above its monthly allowance, and Wise converts at the mid-market rate with a separate fee.
- Paid add-ons. Invoicing, accounting connections or extra cards can sit behind a paid plan, as with Monzo Pro.
Add up a typical month before you choose, using your real number of orders, payouts and supplier payments.
How to choose
- Mostly UK sales and tight margins: look at the zero-fee accounts and check the transfer limits.
- You want accounting and tax built in: compare ANNA's Auto Accountant, Tide's tools, Monzo Pro and Starling's connections to accounting software.
- You trade in other currencies: compare conversion costs first, and consider pairing a multi-currency account with a UK one.
- You will hold large balances: check the provider type. Bank deposits and e-money accounts are protected differently.
What you need to open a business account
Most providers ask for the same basics: your company number if you have a limited company, photo ID for the directors or owner, proof of address, and a description of what the business sells and the payments you expect. Several providers only accept UK residents, and some do not support certain types of business, so check eligibility before you apply. Opening takes minutes at some providers and several days at others, so apply before your first payout is due.
Frequently asked questions
Do I need a business account to sell online in the UK?
If you run a limited company, yes: it is a separate legal entity and must keep its finances apart from yours. Sole traders are not legally required to open one, but many providers do not allow personal accounts to be used for business, which makes a separate account the practical choice.
Can I receive Amazon, eBay or Etsy payouts into a business account?
Yes. Marketplaces pay out to the account details you give them. If you sell abroad, check which currencies the account can receive, because some providers give you local account details in several currencies and others do not.
Is an e-money account safe for an online business?
Funds in an e-money account are safeguarded, which means they are held separately from the provider's own money. They are not covered by the FSCS, which protects deposits at banks up to £120,000. If you plan to hold large balances, check what protection applies.
What is the cheapest way to receive payments from customers abroad?
It depends on the currency and your volume. Compare conversion margins, and check whether the account can receive the currency directly, because avoiding a conversion is usually cheaper than converting at a good rate.
Can I use a personal account to run an online shop?
Often it is possible in practice, but it makes your tax records harder to follow, and many providers prohibit business use of personal accounts in their terms. A separate account keeps sales, fees and refunds in one place.
