Comparison of Payment Gateways and Merchant Accounts in UK

March 16, 2016
Comparison of Payment Gateways and Merchant Accounts in UK

 


SagePay

 

Sage is a popular provider of accounting systems and recently they have moved towards web based solutions. One of the solutions from Sage is SagePay. The basic plan starts at just £ 19.90. Under this plan you can process up to 350 transactions per month completely free of charge. If you are a company that processes individual payments of £50 onwards, we believe this is a good solution for you.

Please note that SagePay does provide an API that allows you to charge the customer from your own website. However you will have to implement this gateway yourself. To the best of our knowledge Sage does not provide physical terminals, but they do provide a virtual terminal in which you have to enter the card details manually.

 

WorldPay

 

Worldpay claim themselves to be the market leader in the payment sector. They have a pay as you go plan that starts at 2.75% +  20 p for each transaction. However, if you pay a monthly fee of  £19.75 then you will be able to process each debit card transaction for 0.75% and remove the 20p flat rate fee that you have on top for the pay as you go plan.

One thing that is worth noting here is that if you refund any payments the transaction fee is not refunded.

Worldpay also offers APIs that you can implement of your website and process the payments through them.

 

Barclaycard

 

This is a solution from Barclays Bank. To get an accurate quote you will need to contact them directly. However, we have learned from many of our clients that you can get it between 1 – 3 % if you are a small business and under 1% for medium scale businesses. Please note that Barclaycard tend to charge different rates for different types of cards. The percentages mentioned here are for personal debit cards. The rates for personal credit cards are usually slightly higher (0.2-0.3% more). And for business credit cards the rates will be much higher (1-2% more).

If you are medium scale business that takes payments mostly by personal debit cards then this is an ideal solution for you.

Please note that Barclaycard also offers an API that allows you to implement the payment system in your website.

 

Paypal

 

Paypal is one of the most popular online solutions. Users trust PayPal because of their reputation and Payment Protection Scheme (that allows users to challenge transactions if the service is not delivered). The starting rate for PayPal is 3.4% + 20p.

You can get it down to 1.9%+20p if you start processing in large volumes.

PayPal also offers an API that allows you process that payment entirely through you own website.

If you are a start up then PayPal is one of the solutions that you can opt for as the implementation is much easier.

 

2Checkout

 

2Checkout is yet another online payment processor that start up companies (and small businesses) can go for. The rates begin at 2.4% + 30 cents (US dollars) and you can get it down if you start processing in large volumes. They also offer an API that you can implement in your own website.

 

Stripe

 

Stripe is one of the best payment processing system out there currently.  They have recently reduced their transaction fees considerably and you can currently process a transaction for just  1.4% + 20p. They charge the same rate for all European cards which is an added advantage.

If you process in large volumes you can contact Stripe and they will reduce the transaction fees even further. Stripe offers a very good API (with good documentation) that allows you to implement the solution in your own website.

 

Amazon Checkout

 

If you would like to use one of those big names, then Amazon checkout is the solution for you. However, the transaction fee is quite high – 3.4% + 20p

 

GoCardless

 

This is a great solution if you accept most of your payment via Direct Debit. They allow you to setup direct debit  for a 1% fee and they have capped the maximum fee per transaction at £2. However, as the name suggests, they don’t support card payments.

 

Subscriptions Services

 

Sometimes you may want your clients to enter into a subscription system. If you would like to charge your customers on a weekly, monthly or yearly basis both PayPal and Stripe offers good mechanisms that allows you to create and manage subscriptions.

 

Our own payment system (bizzyBud)

 

If you are looking for a complete solution for your business the  checkout bizzyBud. Using bizzyBud you can:

  • Manage Clients
  • Manage Leads
  • Create your own store
  • Create your own website and add domain name
  • Manage Subscriptions
  • Create and manage invoices
  • Create, manage and send marketing emails to all your clients
  • Built-in Payment Processing and many more….

 

You can sign up for our free plan here. We charge a processing fee of 2% + 20p if you process any payments and if you would like to lower this rate and avail many more features, you can upgrade any time to any of our paid plans.