As of April 28, 2026, UK banks and payment providers (PSPs) must provide 90 days' notice and a detailed written explanation before closing a merchant account. This guide explains your new rights and how to appeal a termination.
Why the Rules Changed
For years, UK merchants were often "debanked" with only 60 days' notice and zero explanation. Under the Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025, the power balance has shifted back toward the business owner to ensure market fairness and business continuity.
Key Changes at a Glance
| Feature | Old Rule (Pre-2026) | New Rule (Post-April 2026) |
|---|---|---|
| Notice Period | 60 Days (2 Months) | 90 Days |
| Reasoning | None required ("Commercial decision") | Detailed & Specific Explanation |
| Scope | Basic Bank Accounts | All PSPs (Stripe, Square, Adyen, etc.) |
| Appeal Path | Internal only | Financial Ombudsman Service (FOS) |
How to Use the 90-Day Window
If you receive a termination notice, the 2026 regulations provide you with three critical advantages:
- Detailed Justification: Your provider must specify if the closure is due to risk, compliance, or specific transaction patterns.
- The Shopping Period: 90 days is the industry gold standard for securing a high-risk merchant account without losing processing uptime.
- The Right to Challenge: You can use the specific reasons provided to file a formal complaint, potentially pausing the closure.
FAQ: When does the 90-day rule NOT apply?
There are specific exceptions where a bank can still close an account immediately:
- Serious Crime: Suspicion of money laundering or terrorism.
- Regulatory Requirement: If the FCA orders the account closed.
- Illegal Activity: Engagement in fraud or prohibited goods.
