Now that your business is ready to pay, it’s time to think about how you will process the payment. Alternatively, you may want to change your current payment systems. What are the top payment solutions for you and your business?
You’ll see that online payment solutions work almost identically, but it could be a feature – or a cost – that will guide your final decision.
Knowing what’s on the market will help you move forward, so we’ve compiled a list of the most widely recognized systems that help you to grow your small business. But first: a quick definition for better understanding.
What is a payment processor?
A payment processor is a third-party payment systems that transfers money between your customer’s bank account and your business account. Payment processors can also authorize transactions and work on making payments to merchants over a specific period.
The term is often used interchangeably with payment gateways, which are a means of approving payments. Many companies combine mobile money payment solutions and payment gateways into one product, so you will see that this is commonly referred to as a payment gateway.
Best online payments for small businesses in the United Kingdom
Let’s compare some of the best online payment systems in the market, focusing on price, pros, and cons, and what kind of system is most suitable for payments.
There is a reason why Stripe is one of the big names in the industry, with attractive and flexible options for paying online. Stripe’s emphasis on design and integration makes it easy to create your payment form, fully customized with your branding. This ensures that your customers get a paid experience that looks and feels the same as they browse your website and helps you gain confidence and increase conversions as you build your brand.
Stripe also provides a form of payment that you can embed in your website. This means your customers can easily pay without the hassle of being redirect there and then elsewhere. Overall, Stripe provides a simple and intuitive interface to facilitate your customers through the payment process. And the best bit? It was cheap! Stripe charges 1.45% of transactions, plus 20p transaction fees (2.9% + 20p for non-European cards).
PayPal is the name of a trusted home by 17 million businesses worldwide. With PayPal, you can accept payments in more than 25 currencies worldwide – that’s fine if your business expands beyond borders. This is one of the most versatile solutions – you can accept payments online through your website, invoicing or subscription, and recurring billing. And, if you want to accept payments over the phone, PayPal’s virtual terminal includes no setup, no software, coding, and fees. You will also need to pay an additional cost depending on where your customer is buying from – up to 0.5% if they are in Europe and up to 2% for Canada and the US.
WorldPay (although now a part of FIS Global) is a big name when it comes to accepting online payments systems. For starters, you can get paid in 116 currencies, and its online payment gateway offers advanced protection against fraud. It’s also PCI compatible, so you don’t have to worry about small prints!
Even better, Worldpay’s online reporting tools are some of the bests. Its online dashboard allows you to manage your card sales, invoicing, and settlement while being the most important for your business.
A Worldpay payment page can be hosted on their site or integrat into your website, providing flexibility. And while you’ll need to spend some time studying their pricing plans, you’ll find a definite deal that reflects the unique qualities of your small business. If you take more than 1,000 card payments per month, you can contact WorldPay for a better rate. WorldPay also charges a fee for PCI compliance, £ 29.95 per year.
Square can be a good option if you want an all-in-one package. If you do not already have a website, you can create one for free. There is no monthly fee, but you pay 2.5 percent per transaction. You can integrate other applications with Square, including Wix (to build your website) and Xero (to combine sales with your accounting).
There is no monthly fee for the Square online store, and you pay 2.5 percent per transaction, with various features and low prices on their payment plans. Square also has point-of-sale systems that you can use in-store and an invoice app that you can use to create invoices and send them to customers so they can pay their bills online.
Sage Pay is another well-known name in business software – Sage Pay is a payment gateway for businesses that want to set up online. Sage Pay can help you set up a merchant account and ensure you’re consistent.
Sage Pay does not charge transactions. Instead, it has a flat fee of £ 27 per month for its flex offering. This gives you 350 transactions per month, fraud screening tools, and 24/7 support.
You can also try Sage Pena’s e-invoicing software, which can send you invoices with the ‘Pay Now’ button. A transaction fee of 2.2 percent for credit cards and 1.2 percent for debit cards cost £ 5 per month (for payments of £ 1000 or less per month). You can integrate it with other Sage Business Cloud software, including Sage Accounts.
The most popular e-commerce platform in the UK, Shopify, offers you everything you need to start selling. Everything from web hosting to payment processing is taken care of, and they also offer free trials for indecisive businesses. However, ease of use comes at a price, as Shopify is one of the most expensive payment solutions.
Customers on Amazon Pay can make purchases using their Amazon account on eligible websites and apps and make purchases by voice with Amazon Pay for Alexa Skills. How much does it cost? If your monthly payment systems is less than £ 50,000, your payment processing fee will be 2.7 percent, and the authorization fee will be 30p per transaction.
Amazon Pay gets a huge boost from its name recognition – many people have an Amazon account. It also has high security, offers merchant security, and integrates with Shopify and BigCommerce. Purchases are quick and easy if the user is already logged in, but you can emb the “Buy Now” button on your site to make the purchase easier.