A Quick Guide To 11 Top Payment Processors for UK Small Businesses

Being a savvy small business owner, it’s important to explore platforms that process payments effectively. This guide walks you through 11 top payment processors in the UK, helping to demystify the landscape and letting you decide what’s best for your business.

Breaking Down Payment Processors

Before we delve into the specific services, let’s briefly touch on what a payment processor exactly is. Simply put, a payment processor handles transactions between your business and your customers. But not all are created equal, some serve different types of payments or offer particular features that can sway your decision based on cost and suitability.

Top Payment Processors: Pros, Cons, Costs

1. SumUp

Pros

• Lower fixed transaction rate in comparison.
• No monthly fees.
• Processes over 500 transactions on a single charge.

Cons

• Weekend and late evening phone support lacking.

Cost

• The transaction fee is 1.49% for the first month, 1.69% thereafter.
• Reader cost: Air £39, SumUp Air and cradle £44, SumUp Solo £79.

Perfect for

Mobility-driven sectors like freelance beauticians or food vans in the Health and Beauty or Food and Drink industries.

2. Square

Pros

• Quick startup.
• Free real-time analytics.
• Next-day money transfer.

Cons

• Less than stellar customer service.

Cost

• Transaction fees varying from 1.75% to 2.5% plus additional charges for card-not-present payments and non-UK cards.

Perfect for

Small businesses with inconsistent sales.

3. Zettle

Pros

• No contract.
• Multiple payment integrations.
• Deposits to bank account in one-two business days.

Cons

• Limited phone support.

Cost

• £149 monthly for the terminal payment structure (plus VAT)
• £29 monthly for the card reader structure (plus VAT)

Perfect for

Establishments in the Food and Drink, Retail, Health and Beauty, or service-based businesses.

4. (Formerly WorldPay) - FIS

Pros

• Highly rated customer reviews.
• Single merchant ID for different payments.

Cons

• Auto renewal triggers without written notice 30 days prior.
• Pushy salespeople reported.

Cost

• Gateway Standard (£19 a month)
• Gateway Advanced (£45 a month)
• Bespoke Package

Perfect for

Medium-sized businesses with consistent transaction levels.

5. Stripe

Pros

• Rolling bank transfers.
• Over 135 different currencies accepted.
• No setup fees or hidden charges.

Cons

• Disputes come with a charge of £20.

Cost

• Integrated pricing scheme revolved around transaction volume.
• Customized pricing for unique business needs.

Perfect for

Online businesses with developer access.

6. GoCardless

Pros

• Integrations with Xero, QuickBooks, Sage, and Salesforce.
• 99% successful one-off payments collection.

Cons

• Delayed payments clearance.
• Limited currency acceptance.

Cost

• Standard: £0 (pay per transaction only)
• Plus: £50 per month
• Pro: £200 per month

Perfect for

Small businesses wanting simplicity.

7. Amazon Pay

Pros

• Name recognition.
• High security and merchant protection.

Cons

• High fraudster target.
• High transaction fees.

Cost

• Varies depending on monthly payment volume and transaction type.

Perfect for

Online retail businesses.

8. Shopify Payments

Pros

• Instant setup.
• Removes extra transaction fees.

Cons

• £10 per chargeback fee.

Cost

• Basic Shopify: £25 monthly
• Shopify: £65 monthly
• Advanced: £344 monthly

Perfect for

Online retail businesses.

9. Adyen

Pros

• No fee for monthly usage.
• No set-up, integration, or closure fees.

Cons

• High fees for businesses with lower sales volumes.
• Not suitable for high-risk merchants.

Cost

• Processing fee of €0.11 (~9p), plus a transaction fee.

Perfect for

Larger Small Medium-Sized Enterprises (SMEs), not startups.

10. Cybersource

Pros

• Payment acceptance in over 160 countries around the world.
• Over 50 currency acceptance.

Cons

• Larger sales volumes incur larger fees.
• Short storage duration for past transactions.

Cost

• Dependent on requisition from Cybersource.

Perfect for

Established small businesses.

11. Formerly Opayo - Elavon

Pros

• No hidden fees.
• 24/7 telephone support.
• Fast setup.

Cons

• More expensive than its predecessor, Sage Pay.

Costs

• Varies with different plans for face-to-face payments and online transactions.

Perfect for

Small businesses who want a trusted name for online transactions.

Conclusion: Legal Considerations

Understanding the fine print of these payment processors is crucial. It’s important to be aware of transaction charges, dispute fees, how card-not-present payments are processed, and how payments are handled with international customers. Awareness of these factors can help you reduce risk and have solid, legal foundations when dealing with transactions.

To further streamline business documentations and legal agreements, consider signing up to Genie AI. Genie AI offers an AI Legal Assistant for Drafting, Reviewing, Negotiating, and Signing legal agreements. Amid a sea of options, finding the right one for your business may take time, but it’s an investment that will undoubtedly pay off, creating a more seamless commerce experience for you and your customers. Steer your venture towards success.

The world’s largest open source legal library is at your disposal for insightful legal information, advice and assistance. Simplicity and organization are the keys to successful legal drafting, and Genie AI helps you achieve both.

Next time you need to review a legal contract, give Genie a try!

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