Home Payment processors The 8 best payment processors for small businesses

The 8 best payment processors for small businesses


WAs e-commerce has a significant impact on businesses of all kinds, there is a growing need for fast and reliable payment processors. Online e-commerce platforms do a great job for most small businesses. They allow you to target global markets to generate more income with higher profit margin. But this is only possible if you offer several reliable and fast payment options for customers in different regions. For example, Stripe and PayPal alone are not enough as they are not available in many countries.

Here are the 8 best small business payment processors you can use to attract growing global customer base.

What is a payment processor?

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

Our 8 best payment processors for small businesses

1. Stripe

You’ll see Stripe at the top of similar lists for its great services and immense popularity, which has made it one of PayPal’s top competitors. Stripe offers customizable solutions for online payments through its web interface and app.

Stripe charges a tiered fee based on the value of the transaction. It offers integrated and personalized options.

The built-in options for UK businesses are:

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

You can also customize Stipe’s settings by designing packages to suit your business. However, these plans are generally better suited for large payment volumes.

2. PayPal

PayPal is arguably the most popular name in the industry and businesses love to use 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 owner 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 offset by an increase in online sales.

Typical PayPal fees are:

  • Fees per transaction: 1.9% to 3.4% plus 20p
  • Chargeback fee: GBP 14
  • Monthly fee: GBP 20 for website

3. WorldPay

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

4. Shopify Payments

Shopify is not only a reliable eCommerce interface provider, but it also offers payment processing services. Shopify Payments supports contactless credit card transactions in addition to card swipe options with a PIN or chip.

Shopify offers several packages, including Basic and Advanced:

  • GBP 21 per month (basic)
  • 2% plus 20p (credit card transaction)
  • 7% for in-person card transactions
  • GBP 217 per month (advanced)
  • 6% plus 20p (credit card transactions)
  • 5% for in-person card transactions

5. Amazon Pay

Customers all over the world have Amazon Pay to purchase products on the Amazon platform. Since Amazon is such a huge name, it can offer a huge potential online marketplace for businesses.

Amazon Pay fees:

  • 7% for a monthly volume of less than 50,000 GBP
  • Additional 30 pence per transaction as an authorization fee
  • 5pc cross-border fee (for sales outside the country)
  • 14 GBP chargeback fee

6. Advance payments

Takepayments aka Payzone specializes in payment solutions for SMEs. It is an independent service organization (ISO) that acts as an intermediary between businesses and banks. In addition to offering different types of card readers, Takepayments also offers online solutions and EPOS systems.

7. Ayden

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

  • 1 euro processing fee
  • 6 euros buyer fees
  • Additional payment method fees for each transaction

8. Cardstream

Cardstream might be right for your business if you are looking for a payment processor that is not bank dependent. Working with hundreds of reseller partners sets Cardstream apart from the above payment processors.

Their pricing structure includes:

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

Key points to remember

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

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