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Best Payment Gateway Providers For Your Business
Payment gateways allow you to accept card payments, so you need one that works for you.
What is a Payment Gateway?
Payment gateways allow you to accept various payment methods, including credit cards, debit cards, and mobile payments. While they are usually used for online purchases, some EPOS machines also use them for in-person payments.
They work by collecting the information needed from a customer to allow a payment to happen. Once they have collected the required information, they open the channel for a payment processor to process the payment. Their role in opening the door to allow a payment to happen gives them their name.
While they’re often confused with each other, the difference between payment gateways and payment processors is important. A payment gateway provides the necessary information for the processor to complete the transaction. Payment processors, meanwhile, handle the actual transfer of funds between the customer’s bank and your merchant account.
What is the Difference Between a Payment Gateway and a Merchant Account?
This article will take you through what we consider to be some of the best payment gateways on the market in the UK. You’ll notice that a lot of the gateway providers you see here also feature on our list of best merchant accounts. So, you might be wondering what the difference is between a payment gateway and a merchant account.
Well, a merchant account is where the money ends after a transaction has been green-lit by a payment gateway and gone through a payment processor. Payment gateways are often used and integrated with merchant accounts because this makes it simpler for the provider of payment systems and the businesses that use them.
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If you’re confused about all the jargon you’ve just read, don’t worry. While this article focuses on the best payment gateways for your business, we also have in-depth guides that explain all you need to know about taking payments.
Which is the Best Payment Gateway?
Choosing the right payment gateway can be tricky, especially if you’re new to electronic payments. That’s why we’ve done the research for you.
This article compares what we consider to be the top five payment gateways for your business. We’ll cover processing fees, user-friendliness, and integration options to help you make an informed decision. Click on the provider below to learn more:
Square is one of the big payment processors in the UK. Its services are well suited to small businesses, and it has become a big player in that area in recent years. One of the things that makes it attractive is its fast payouts and lack of contract.
With Square, you can accept payments in-person and online, build an e-commerce store, and use its POS app—all for no monthly fee. You’ll only pay a standard transaction fee of 1.75%.
How Much Does Square Cost?
Square offers a variety of hardware options for accepting payments. Whether you need a card reader or a more comprehensive POS system, they have a solution.
Unlike some providers, Square charges a one-time fee for their hardware, eliminating the need for ongoing rental fees. However, Square does charge transaction fees on all payments processed through its platform, which are listed below:
- In-person payments: 1.75% for chip & PIN, mobile, or contactless payments.
- Manually keyed-in payments: 2.5%.
- Online payments: 1.4% + 25p for UK cards, 2.5% + 25p for non-UK cards.
This pricing structure applies to in-person payments and online checkouts.
Stripe is probably the most versatile payment gateway provider on this list. With its various integrations, range of card machines, multiple ways of accepting payments, and ability to slot right into your existing systems, it’s a strong contender for your business. What’s more, its lack of monthly fees boosts its affordability for smaller businesses.
Its choice of six card machines and mobile apps means whether your business needs a small portable card reader, a mobile app, or a large machine to pair with an EPOS system, Stripe is well-placed to suit your requirements.
How Much Does Stripe Cost?
Stripe charges different transaction fees depending on how the payment is made and where it happens. For businesses that operate solely in the UK, there’s a 1.4% + 10p charge for in-person payments and 1.5% + 20p payment for online payments.
You do pay a higher rate on certain card payments, like those made with commercial, corporate or business cards. For these kinds of payments, you pay a 1.9% + 20p.
The payment gateway takepayments provides is a hosted payment gateway, so you don’t have to have the gateway on your site and the complicated stuff is handled externally. This makes it easy, safe, and secure for your business so you don’t have to deal with any of the nitty gritty hassle. You can, however, fine-tune the payment experience to suit your business’s brand so you still retain control.
Payment gateways are only part of what takepayments provide so, like Stripe, it’s also great for businesses that want to take payments in multiple ways. It offers virtual terminals, QR code payments, and pay-by-links, and you can track all of this with the takepayments app.
How Much Does Takepayments Cost?
While the company does outline the types of fees it charges on its website, which include transaction fees, rental fees, and minimum monthly service charges, it only offers tailored pricing plans. To get a precise quote, you’ll need to share specific details about your business and payment requirements with the company directly, which you can do on its website.
While this might take a little extra time, it does guarantee you’ll only pay for the services you truly need.
As a leading choice for businesses globally, Worldpay offers a variety of payment solutions, from card machines and EPOS systems to payment gateways.
One of Worldpay’s most valuable features is the dashboard, which provides a centralised platform for managing your account. It allows you to track transactions, settlements, and invoicing so you can have a real insight into your business’s payment activity.
Worldpay’s SaferPayments program is an added bonus, ensuring compliance with PCI standards and offering robust fraud prevention measures. This, combined with their expert guidance, makes them a trusted partner for all your payment needs.
How Much Does Worldpay Cost?
Worldpay’s fees come from several sources. Unlike some providers on this list, Worldpay doesn’t offer the option to purchase a card machine outright and instead charges a rental fee.
Worldpay charges a 1.5% transaction fee if you go for its simplicity pricing tariff and 0.75% + 4.5p if you go with its custom pricing tariff. However, you will have to be taking at least £75,000 in card payments annually to access the lower rate.
With its payment gateway fees, there is a monthly fee of £19.95. This, along with the 1.5% transaction fee, is the only cost you need to account for. There are no upfront fees, authorisation fees, or premium charges, which helps if your business is keen on not overspending on its payments. As a bonus, payments are typically processed within the next business day, which also comes with no extra cost.
Zettle is part of PayPal, which is a long-time player in the taking payments game. Zettle is well known for its user-friendly interface and competitive pricing, making it a popular choice for small and medium-sized businesses. With Zettle, Paypal is the company that provides you with the account you use to hold your funds and it’s also Paypal that processes your payment. Like takepayments, they provide you with a hosted payment gateway, so it deals with the actual taking payment; making it less hassle for you.
For this reason, it’s well suited to smaller-sized businesses. Its lack of contract boosts its attractiveness, as does its competitively priced card machines and EPOS systems, which can cover the needs of small and growing businesses. Its main strength, however, is its simplicity; all you need is the Zettle app for both in-person and online payments. You don’t even need a card machine.
How Much Does Zettle Cost?
Zettle offers affordable card machines. The basic Zettle Reader is available for a one-time payment of £29, while the more advanced model is £149. If you don’t need a dedicated card machine, you can use the free Zettle app on your mobile device.
Zettle’s EPOS systems are also reasonably priced. The Zettle Store Kit starts at £169, making it a cost-effective option for businesses looking to upgrade their point-of-sale capabilities.
Zettle’s transaction fees are not as competitivly priced as its hardware. Each payment incurs a 1.75% fee, regardless of the device you use, and payment links and invoices are subject to a 2.5% fee. Therefore, the lack of card rental fees and free membership might not result in significant cost savings.
Verdict
When it comes to choosing your payment gateway, it will ultimately depend on your business’s specific needs. You will need to ask yourself how many card payments you expect to take, whether you’ll need a card machine as well as an online payment gateway, and if you prefer to not be tied down to a contract or rental fees. You know your business better than anyone, so you know what’s best.
That said, of the providers on the list above, Worldpay is most likely to suit you best if you have a larger business that takes lots of payments, takepayments is best for medium-sized businesses, and SumUp is best for small businesses. These generalisations aren’t definitive but they’re good for a general idea of what might suit your business.
FAQs
What is a payment gateway?
A payment gateway allows businesses to accept, process, and manage customer payments. They allow you to accept various payment methods, including credit cards, debit cards, and mobile payments.
Which is the best payment gateway?
When it comes to choosing your payment gateway, you know your business better than anyone.
You will need to ask yourself how many card payments you expect to take, whether you’ll need a card machine as well as an online payment gateway, and if you prefer to not be tied down to a contract.
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