Funeral directors have a particular payment challenge.
The service is personal and often arranged face to face, but the payment itself may involve several different people, deposits, large card transactions, bank transfers, remote payments, outstanding balances or third-party finance.
For the funeral business, payments also need to be easy to reconcile, secure and compatible with the systems used to manage each funeral arrangement.
This guide is for funeral directors and funeral groups choosing how to accept and manage customer payments. It covers merchant accounts, card machines, payment links, telephone payments, split payments, integrations, finance and the regulatory distinctions funeral businesses need to understand.
Payments for Funeral Directors
- Funeral directors can accept card payments face to face, remotely and online, subject to their payment provider's acceptance and underwriting.
- A payment link can allow a family member to complete a card payment remotely without giving card details to funeral-home staff.
- More than one family member can potentially contribute towards the same funeral invoice where the payment system supports part-payments or multiple transactions.
- Splitting an invoice between several payers is different from providing credit to one customer.
- Funeral directors should distinguish between ordinary card payments, staged payments, third-party finance and regulated prepaid funeral plans.
- Third-party Deferred Payment Credit, commonly called Buy Now Pay Later, became FCA regulated on 15 July 2026.
- Prepaid funeral plans have been regulated by the FCA since 29 July 2022.
- Merchant-account providers may look at transaction values, card-not-present volumes, refunds, chargebacks, payment timing, business structure and whether the business undertakes regulated activities.
- For multi-branch funeral groups, integration and reconciliation can be as important as the headline card-processing rate.
- Funeral directors should compare the complete payment setup rather than choosing a provider solely because it advertises a low transaction percentage.
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What Payment Methods Can Funeral Directors Accept?
There is no single payment setup that every funeral business needs.
A small independent funeral director may primarily require a card terminal and bank transfer details.
A larger group might need:
- countertop or mobile card terminals;
- debit and credit card acceptance;
- telephone payments;
- secure payment links;
- deposits;
- part-payments;
- several family members contributing towards one balance;
- recurring or scheduled payments;
- automated payment reminders;
- branch-level reporting;
- accounting or funeral-management-system integration;
- online payment functionality;
- refunds;
- payment reconciliation; and
- access to third-party finance where appropriate.
The starting point should therefore be the payment journey, rather than the provider.
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Ask:
How do families actually need to pay us?
Then establish which merchant account, gateway and technology can support that journey.
Doing this in reverse — choosing a provider first and trying to fit the funeral home's processes around it — can create unnecessary limitations later.
Do Funeral Directors Need a Specialist Merchant Account?
Not necessarily.
A funeral director is not automatically a high-risk merchant simply because it operates in the funeral sector.
However, acquiring decisions are provider-specific. Different acquiring banks and payment providers have different risk appetites and acceptance criteria.
A payment provider may consider factors including:
- what services the business provides;
- whether payments relate to at-need funerals or prepaid funeral plans;
- average transaction value;
- monthly card turnover;
- percentage of payments taken face to face;
- percentage taken online or over the telephone;
- deposits;
- timing between payment and delivery of services;
- refund levels;
- chargeback history;
- number of branches;
- business ownership;
- processing history;
- customer geography;
- regulatory permissions where relevant; and
- required payment technology.
This forms part of merchant account underwriting.
The fact that one acquiring provider accepts a funeral business does not mean every provider will assess it in exactly the same way.
What Do Payment Providers Check When Underwriting a Funeral Director?
For an established funeral business, an underwriter may want to understand both the company and the transactions passing through the merchant account.
Typical questions can include:
What Is Being Paid For?
The provider needs to understand whether transactions relate to:
- a funeral being arranged now;
- deposits;
- disbursements or third-party costs;
- additional services;
- prepaid funeral plans; or
- another product or service.
Different payment arrangements can create different regulatory and acquiring considerations.
When Is Payment Taken?
There is an important difference between:
customer pays → funeral takes place shortly afterwards
and:
customer pays → service may be provided years into the future.
The second scenario may involve a prepaid funeral plan and should not simply be treated as an ordinary future card transaction.
Payment providers can pay particular attention to businesses collecting money significantly before the service is delivered. Our guide to future-delivery risk in payments explains how this type of exposure can affect underwriting, settlement and reserves.
How Are Payments Taken?
The provider may need to understand the mix between:
- card-present transactions;
- ecommerce payments;
- payment links;
- Mail Order / Telephone Order (MOTO);
- recurring transactions; and
- other payment methods.
What Are the Transaction Values?
Funeral transactions can be materially larger than everyday retail purchases.
Providers may therefore consider:
- average transaction value;
- maximum expected transaction;
- monthly turnover;
- unusually large transactions; and
- whether transaction values are consistent with the services advertised by the business.
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A funeral director changing payment provider should explain the whole payment model, not simply say:
“We need a card machine.”
A stronger provider conversation explains who pays, how they pay, typical transaction values, when payment is taken, how the funeral is delivered and what technology the business needs.
Card Payments for Funeral Directors
Card payments can be taken at several points in the funeral arrangement.
For example:
- a deposit in branch;
- a family member paying the full balance;
- a relative making a contribution;
- a final balance paid remotely; or
- additional services purchased after the initial arrangement.
The appropriate setup may include a physical card terminal, online checkout, payment link or virtual terminal.
When comparing payment providers, funeral directors should consider more than the advertised transaction percentage.
Look at:
- debit-card pricing;
- credit-card pricing;
- commercial and international card charges;
- per-transaction fees;
- authorisation charges;
- monthly fees;
- gateway costs;
- terminal rental;
- refund charges;
- chargeback fees;
- PCI-related charges;
- settlement;
- contract length; and
- early termination provisions.
For larger funeral groups, the effective total processing cost is more useful than one advertised card rate.
Are Payment Links Useful for Funeral Directors?
They can be particularly useful.
A payment link allows the funeral director to create a payment request and send it to the payer, commonly by SMS or email.
The customer then enters their own payment details into a hosted online payment page.
For example:
Funeral arranged → invoice or balance agreed → secure link sent → family member completes payment → funeral director receives confirmation
This can be useful where the person paying:
- is not present at the funeral home;
- lives elsewhere;
- wants to make a contribution;
- is dealing with the arrangement by telephone; or
- would prefer not to give card details verbally.
Payment links can also be attached to a particular customer reference or invoice, depending on the provider.
That can make reconciliation considerably easier than trying to match an unidentified bank transfer to a funeral arrangement.
Payment Link vs Telephone Card Payment
These are not necessarily the same transaction type.
With a traditional MOTO payment:
customer gives card details → employee enters them into a virtual terminal
With a payment link:
funeral director sends link → customer enters their own card details → online transaction is completed
The second approach can allow online authentication and fraud tools to be used where applicable and can reduce the amount of cardholder information handled directly by staff.
It does not, however, remove PCI DSS responsibilities or make transactions immune from fraud or chargebacks.
Can Several Family Members Pay Towards One Funeral?
Potentially, yes.
This is an important distinction from finance.
A funeral invoice might be £4,500, for example, with:
- one family member paying £2,000;
- another paying £1,500; and
- a third paying £1,000.
That is essentially multiple payments towards the same balance.
The payment system needs to keep track of:
- the original amount due;
- each individual contribution;
- the remaining balance;
- who made each payment;
- transaction references;
- receipts;
- refunds; and
- the person contractually responsible for the funeral account.
The final point is particularly important.
Allowing several people to contribute does not automatically change who is responsible for settling the funeral director's invoice.
The funeral home's contractual terms should make this clear.
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Is a Split Payment the Same as Paying in Instalments?
No.
These terms can describe completely different arrangements.
| Payment arrangement | What is happening? | Main consideration |
|---|
| Multiple family contributions |
Several people each pay part of one funeral bill |
Tracking and reconciliation |
| Deposit and final balance |
Customer pays at agreed stages |
Clear payment terms |
| Merchant's own instalment arrangement |
Funeral director allows customer to pay over time |
Check whether credit rules apply |
| Third-party payment finance |
Separate lender finances the purchase |
Lender and regulatory structure |
| Prepaid funeral plan |
Customer pays towards a funeral required in the future |
Separate FCA funeral-plan regime |
Funeral directors should therefore avoid treating split payments, instalments, finance and funeral plans as interchangeable terms.
They are not.
What Changed for Buy Now Pay Later in July 2026?
An important regulatory change took effect on 15 July 2026.
The Financial Conduct Authority now regulates qualifying third-party Deferred Payment Credit (DPC) agreements, commonly described as Buy Now Pay Later.
DPC broadly covers qualifying interest-free credit provided by a third-party lender where the agreement falls within the relevant regulatory definition.
This distinction matters for funeral businesses considering a third-party instalment product.
The FCA states that qualifying DPC is regulated where the lender and supplier are different businesses.
The FCA also explains that merchant-provided DPC and broking DPC can be treated differently under this particular regime.
However, this should not be interpreted as meaning that every instalment or finance arrangement offered by a funeral director is automatically unregulated.
Different types of consumer credit can fall under different rules.
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Do not use split payment, payment plan, BNPL and finance as if they mean the same thing.
Before introducing a product, establish:
- Who is providing the credit?
- Is interest charged?
- How many repayments are made?
- Over what period?
- Who contracts with the customer?
- What activity is the funeral director performing?
- Which regulatory framework applies?
Where consumer credit is involved, the funeral business should obtain appropriate regulatory or legal advice rather than relying on the terminology used by a technology provider.
What Is the Difference Between Funeral Finance and a Prepaid Funeral Plan?
This is another important distinction.
Funeral Finance
Finance normally helps a family meet the cost of a funeral that is being arranged now.
A third-party lender may provide credit to an eligible customer, with the proceeds being used towards the funeral.
The lender, credit product and relationship with the funeral director determine the regulatory requirements.
Prepaid Funeral Plan
A prepaid funeral plan is arranged before the funeral is needed, potentially many years beforehand.
The FCA has regulated prepaid funeral plans since 29 July 2022.
Businesses undertaking regulated funeral-plan activities need the appropriate regulatory status.
The FCA explains that funeral-plan providers must be authorised and that intermediaries involved in selling or arranging funeral plans may need to be directly authorised or act as an appointed representative of an appropriately authorised principal.
A merchant account used for ordinary funeral payments should therefore not automatically be assumed to cover prepaid funeral-plan activity.
The business should make the distinction clear to its payment provider.
What Payment Information Must Funeral Directors Publish?
The payment journey does not sit separately from a funeral director's wider consumer obligations.
The Competition and Markets Authority's Funerals Market Investigation Order 2021 introduced specific price and transparency requirements for funeral directors.
CMA guidance says funeral directors must display specified information including:
- the Standardised Price List;
- an Additional Options Price List;
- relevant crematorium pricing;
- certain terms of business; and
- certain information about interests with other parties.
Importantly for payments, the CMA guidance specifically refers to terms of business covering matters such as deposits and late-payment fees.
That means the technology used to collect money should work consistently with the terms being presented to customers.
For example, funeral directors should be clear about:
- whether a deposit is required;
- when the final balance becomes due;
- whether third-party costs must be paid in advance;
- what happens when several relatives contribute;
- refund arrangements; and
- any applicable late-payment terms.
How Should Funeral Directors Handle Outstanding Payments?
Funeral directors need to collect legitimate outstanding balances, but the process should be structured and clear from the start.
Good payment administration can include:
- stating payment terms at arrangement stage;
- recording the person responsible for the account;
- issuing properly referenced invoices;
- recording deposits;
- tracking part-payments;
- sending payment links against outstanding balances;
- recording communications;
- providing clear receipts;
- identifying overdue accounts promptly; and
- giving staff a consistent process for follow-up.
Technology can help automate parts of this process, but it should not replace appropriate judgement when dealing with individual circumstances.
The objective is not simply to send more reminders.
It is to prevent the funeral home losing visibility of what has been paid, what remains outstanding and who is responsible for the account.
Why Does Payment Reconciliation Matter for Funeral Groups?
Payment reconciliation becomes increasingly important as a funeral business grows.
Consider a group with:
- 20 branches;
- hundreds of active arrangements;
- deposits;
- balances;
- card-terminal payments;
- online payments;
- bank transfers;
- family contributions; and
- third-party finance.
A payment confirmation showing:
£1,250 received
is much less useful than:
£1,250 received → Arrangement 18273 → Branch 06 → Client account → Remaining balance £2,450
For larger businesses, payment reporting may need to connect with:
- funeral-management software;
- CRM;
- accounting software;
- ERP;
- customer records;
- invoices; and
- branch reporting.
This is where integrated payments can become more important than simply changing card-terminal provider.
Do Funeral Directors Need Integrated Payments?
Not every funeral director does.
A single-site independent business with relatively straightforward payment volumes may be perfectly well served by:
- card terminals;
- bank transfers; and
- payment links.
Integration becomes more valuable where staff are repeatedly moving payment information between different systems.
For example:
arrangement created → invoice raised → payment request generated → customer pays → transaction reconciled against arrangement → outstanding balance updated
Without integration, employees may have to perform several of those steps manually.
Funeral businesses reviewing integrated payments should establish:
- what funeral-management software they use;
- whether it has existing payment integrations;
- whether an API is available;
- which provider owns the integration;
- whether payment references pass between systems;
- whether multiple branches are supported;
- how refunds are recorded;
- how users and permissions work; and
- what happens if the payment provider is changed later.
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For a multi-branch funeral group, ask providers to demonstrate the reconciliation journey, not just the checkout.
Getting money into the merchant account is only half of the payment problem.
The other half is knowing exactly which arrangement it belongs to.
How Should Funeral Directors Compare Payment Providers?
Merchant Advice Service would use the following framework.
1. Acceptance
Will the acquiring provider underwrite the actual business and activities being processed?
2. Payment Channels
Do you need:
- card terminals;
- online payments;
- MOTO;
- payment links;
- recurring payments; or
- several channels?
3. Customer Payment Journey
Can the system support:
- deposits;
- balances;
- family contributions;
- different payers;
- refunds; and
- remote payments?
4. Integration
Does it work with the funeral-management, CRM, accounting or other software the business already uses?
5. Reconciliation
Can transactions be linked to:
- arrangements;
- invoices;
- branches;
- customers; and
- outstanding balances?
6. Regulation
Are prepaid funeral plans, consumer credit or third-party finance involved?
If so, make sure the business understands the relevant regulatory structure separately from its card-processing arrangement.
7. Commercial Terms
Finally compare:
- processing rates;
- transaction fees;
- terminal costs;
- gateway fees;
- settlement;
- contract terms;
- chargeback fees;
- refunds; and
- other provider charges.
MAS Funeral Payments Framework
Acceptance → Payment Channel → Customer Journey → Integration → Reconciliation → Regulation → Cost
Price comes last deliberately.
A very cheap merchant account that cannot support the funeral home's payment journey, software or regulatory structure is not necessarily the cheapest solution overall.
What Should a Funeral Director Prepare Before Changing Merchant Account Provider?
An established funeral business can make the provider-selection and underwriting process easier by preparing:
- legal company name;
- company registration number;
- ownership information;
- number of branches;
- website;
- services offered;
- current provider;
- recent processing statements;
- monthly card turnover;
- average transaction value;
- largest expected transaction;
- card-present/card-not-present split;
- refund history;
- chargeback history;
- payment timing;
- settlement requirements;
- funeral-management software;
- required integrations;
- details of any prepaid funeral-plan activity; and
- details of any finance arrangements.
For a larger group, it can also be worth documenting:
customer → payment method → merchant entity → payment provider → settlement account → funeral record
This gives the provider a much clearer picture of the proposed payment arrangement.
Finding a Payment Provider for a Funeral Business
There is no single merchant account or payment provider that is automatically right for every funeral director.
The right setup depends on factors including how customers pay, average transaction values, whether payments are taken face to face or remotely, how quickly services are delivered, the software used by the business and whether finance or prepaid funeral-plan activity is involved.
Merchant Advice Service helps funeral businesses compare payment providers based on these wider requirements rather than simply looking for the lowest advertised processing rate.
Our service is free to merchants.
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Sources & Further Reading
This guide has been informed by regulatory guidance, government information, payment-industry documentation and Merchant Advice Service research.
Financial Conduct Authority — Regulating the Funeral Plans Sector
FCA guidance covering providers and intermediaries operating in the prepaid funeral-plan market.
Read the FCA guidance on funeral plans
Financial Conduct Authority — Buy Now Pay Later / Deferred Payment Credit
Current FCA guidance following the introduction of Deferred Payment Credit regulation on 15 July 2026.
Read the FCA Deferred Payment Credit guidance
Financial Conduct Authority — Regulation of Deferred Payment Credit, PS26/1
The FCA policy statement setting out its approach to the regulation of qualifying third-party Deferred Payment Credit arrangements.
Read FCA Policy Statement PS26/1
Competition and Markets Authority — Funeral Directors and Crematorium Operators Guidance
Official guidance covering funeral-pricing transparency, terms of business and requirements introduced following the Funerals Market Investigation.
Read the CMA funeral-sector guidance
Ensembl Payments — Payment Solutions for Funeral Directors
An industry example of a sector-specific funeral payment platform, including functionality such as payment links, payment tracking, split payments and finance options.
View Ensembl's funeral director payment solution
Related Merchant Advice Service Guides
Understand how acquiring providers assess business activity, ownership, processing history, payment flows and financial exposure before approving a merchant account.
Understand why one payment provider may accept a merchant that another provider declines.
Understand how the period between taking payment and providing a service can affect merchant underwriting, reserves and settlement.
Understand how payments can connect with CRM, ERP, EPOS and specialist business software.
Understand how businesses can securely request remote card payments by email or SMS.
Compare acquiring and payment providers based on business requirements, technology, provider fit and total processing costs.
Editorial & Commercial Disclosure
Merchant Advice Service provides independent information about merchant accounts, payment gateways and payment providers.
We may introduce businesses to payment providers and may receive commission where a merchant chooses to proceed with a provider following an introduction.
Providers or technology companies referenced as sources or examples do not determine the editorial conclusions of this guide.
Merchant Advice Service does not provide legal or regulatory advice. Businesses should obtain specialist advice where they are unsure whether a proposed finance, credit or funeral-plan arrangement falls within FCA regulation.
