Home Finance & Investments The 8 Best Payment Processors for Small Businesses

The 8 Best Payment Processors for Small Businesses

The 8 Best Payment Processors for Small Businesses

With e-Commerce having a significant impact on businesses of all kinds, there is an increasing need for fast and reliable payment processors. Online e-Commerce platforms are doing a great job for most small businesses. They let you target global markets to generate more revenue with a higher profit margin. But this is possible only if you offer multiple reliable and fast payment options for customers in different regions. For example, Stripe and PayPal alone are not sufficient since they are not available in many countries.

Here are the 8 best payment processors for small businesses that you can use to attract a growing, global customer base.

What is a Payment Processor?

A payment processor, also known as a payment gateway, is essentially a bridge that connects your bank and your customer’s bank. They are third-party companies that promise fast transactions and charge some kind of fee for their services.

Our Top 8 Payment Processors for Small Businesses

1.  Stripe

You will see Stripe at the top of similar lists for its excellent services and immense popularity, which has made it one of the top competitors of PayPal. Stripe offers customisable solutions for online payments through its web interface and App.

Stripe charges scaled fees depending on the value of the transaction. It offers integrated as well as customised options.

Integrated optionsfor UK businesses are:

  • 4% plus 20p (European Cards)
  • 9% plus 20p (Non-European Cards)
  • 1% currency conversion

You can also customise Stipe settings by designing packages suitable for your business. However, these packages are usually best suited to large payment volumes.

2. PayPal

PayPal is arguably the most popular name in the industry and businesses love using this service for its ease of use. What attracts most businesses to PayPal is that so many customers trust this platform. Why would a business leader ignore a payment processor that most of their target market prefers?

The service fees may be higher than other alternatives, but this may very well be compensated by increased online sales.

Typical PayPal fees are:

  • Fee per Transaction: From 1.9% to 3.4% plus 20p
  • Chargeback Fee: 14 GBP
  • Monthly Fee: 20 GBP for Website

3. WorldPay

WorldPay is the largest payment processor in the UK, with flexible pricing plans starting at 19.96 GBP a month. WorldPay supports MasterCard, Visa, Maestro, Discover, Union Pay, Diners’ Club International, American Express, and JCB, among other cards. However, an agreement is required for these compatibilities. The good news is that WorldPay also supports PayPal.

4. Shopify Payments

Shopify is not only a reliable e-Commerce interface provider, but it also offers payment processing services. Shopify Payments support contactless credit card transactions in addition to card swipe options with a PIN or Chip.

Shopify has multiple packages including Basic and Advanced:

  • 21 GBP per Month (Basic)
  • 2% plus 20p (credit card transaction)
  • 7% for in-person card transaction
  • 217 GBP per Month (Advanced)
  • 6% plus 20p (credit card transactions)
  • 5% for in-person card transaction

5. Amazon Pay

Customers all over the world have Amazon Pay to buy products on the Amazon platform. Since Amazon is a huge name, this can offer a huge potential online market for businesses.

Amazon Pay fees:

  • 7% for a monthly volume less than 50,000 GBP
  • Addition 30p per transaction as authorisation fee
  • 5pc cross-border fee (for sales outside the country)
  • 14 GBP chargeback fee

6. Takepayments

Takepayments aka Payzonespecialises in payment solutions for SMEs. It is an Independent Service Organisation (ISO) that acts as a conduit between businesses and banks. In addition to offering various types of card readers, Takepayments also offers online solutions and EPOS systems.

7. Ayden

Ayden offers an in-person POS system as well as online payment services. It supports pay by link, in-app, subscription, and web payment methods, with typical fees being:

  • 1 Euro processing fee
  • 6 Euro acquirer fee
  • Additional payment method fees for each transaction

8. Cardstream

Cardstream could be right for your business if you are looking for a payment processor that does not depend on the banks. Working with hundreds of reseller partners puts Cardstreamapart from the above payment processors.

Their fee structure includes:

  • A subscription fee of 18 GBP per month
  • 350 free transactions every month including in the subscription
  • Additional transactions will cost 9p per transaction

Key Takeaways

Make sure to do your research on the pros and cons of various payment processors before you choose one for your business. On paper, everything might look good but there can be issues that blindside you. The right payment processor will help you to attract more customers, lower your rate of cart abandonment, boost revenue and help your business be more successful. Therefore, don’t make a hasty decision, take your time, and make sure you make the best choice for your business!