8 Best Merchant Account Providers in the UK – Reviews
Merchant accounts are financial services that allow businesses to accept payments via credit or debit cards. They facilitate secure transactions, providing businesses with the ability to process card payments efficiently, enhancing customer convenience and expanding revenue streams.
Merchant Account providers:
Takepayments : Bespoke pricing for medium to large retailers (0.3% – 2.5%).
Worldpay : Pay as you go: 2.75% + 20p or pay monthly: 0.75% debit, 2.75% credit.
Lopay : From 0.79% +8p
Barclays Merchant Accounts : Competitive rates for low turnover businesses (<£240,000) of 1.75%
Stripe : 1.5% + 20p
Square : 1.6% + 10p
PayPal : 1.9% + 30p
Elavon : Prices vary, contact for a bespoke quote.
Our Top 3 Merchant Account Providers in April 2024:
Takepayments – 4.8 for their incredibly low and tailored fees
Worldpay – 4.7 stars for theirfantastic technical knowledge and support
Lopay – 4.8 stars for their stellar customer service
How have we selected these providers?
For each provider we review, we assign them a score out of five based on the most useful comparable features and benefits we have selected for mobile providers:
Here’s how we assess and assign scores (out of five) to merchant account providers: We focus on the most critical features impacting businesses:
Processing Rates & Fees: This is crucial for your business’s profitability. So here, we evaluate the transparent pricing structure, including per-transaction fees, monthly fees, chargeback fees, and any hidden costs.
Account Approval & Risk Management: Getting approved for a merchant account can be challenging, so we assess the provider’s application process, approval rates for businesses like yours, and the risk management tools they offer to minimise chargebacks and fraud.
Payment Processing Speed & Functionality: Fast and reliable processing is vital for customer satisfaction and cash flow. So here we evaluate transaction processing speed, supported payment methods (credit cards, debit cards, eWallets), and any additional features like recurring billing or invoicing.
Security & Compliance: Protecting customer data is paramount, so we assess the provider’s security measures (PCI compliance, data encryption), fraud prevention tools, and their history of data breaches.
Customer Support & Reputation: Reliable customer support is essential for resolving issues quickly. We assess response times, availability of support channels (phone, email, online chat), and the overall knowledge and helpfulness of the support team.
Why listen to our reviews?
Our team boasts over a decade of experience in financial transactions. This expertise, coupled with our CEO’s proven leadership in payment processing strategies, empowers us to guide you towards the ideal merchant account provider for your business. We are passionate about delivering in-depth analyses and unbiased reviews to equip you with the knowledge to make informed decisions for your company’s financial health.
While we strive to offer the most comprehensive recommendations, remember that the landscape of merchant account providers in the UK is vast. Each provider caters to specific needs, and one might be the perfect fit for your business.
For a comprehensive comparison, use our comparison tool here today.
Topics covered in this article include:
What are Merchant Accounts?
A merchant account serves as a specialised business bank account designed to facilitate the acceptance and processing of electronic payments, including debit and credit card transactions.
When a customer makes a card-based purchase from your business, the funds are initially deposited into the merchant account. Subsequently, these funds are transferred to your business bank account, typically daily.
With the diminishing reliance on cash payments, projected to drop to just 9% of purchases by 2028, alternative payment methods such as debit cards, credit cards, contactless, and smartphone payments have become increasingly prevalent. To adapt to this shift away from cash transactions and remain competitive in today’s marketplace, having a merchant account is imperative for every business.
Benefits of Merchant Accounts
Merchant accounts are essential for many types of businesses and have a wide range of benefits that will suit various types of businesses depending on your needs. They allow businesses to accept electronic payments and in doing so expand their customer base by allowing them to accept credit, debit and contactless payments.
By offering convenient payment options, businesses can increase their sales, removing any barriers that may be put in place by only accepting cash.
In addition, by streamlining the checkout process with efficient hardwar e, businesses can be confident knowing that they can provide faster transactions with quicker electronic payment processing and receive their funds promptly.
Businesses can enjoy enhanced security features such as encrypted transactions and protection against counterfeit bills by using merchant accounts. In addition, they can access detailed sales data and a range of transaction reports for sales trend analysis and business optimisation.
Disadvantages of Merchant Accounts
As with most things, there are always some downsides that we must consider when choosing a merchant account provider. Perhaps the most important is the transaction fees, which will vary based on the provider and card types used.
Businesses should be mindful that they may incur monthly fee s regardless of their sales volume (depending on the provider). In addition, they will be locked into some form of contractual obligations with the provider’s terms and conditions; this may include early termination fees.
While merchant accounts can provide robust security features, businesses must be aware that they must adhere to specific security protocols to mitigate any fraud risks.
Lastly, the merchant’s account application process can be tedious and involves submitting detailed financial statements.
Types of Merchant Accounts
There are many types of merchant accounts, each intended to suit different industries and business needs. We have explored some of the main ones below:
Merchant Account Type
Features
Best For
Standard
Ideal for a broad range of businesses with moderate transaction volumes.
Businesses that don’t require specialised features and prioritize a well-rounded solution.
Retail
Often includes point-of-sale (POS) system integration for in-person transactions.
Brick-and-mortar stores like restaurants or retail shops that need to accept payments on-site.
Internet
Facilitates secure online transactions through payment gateways.
Businesses operating online stores or relying on e-commerce for sales.
Mobile
Enables accepting payments using portable card readers, smartphones, or tablets.
Businesses with on-the-go operations, such as food trucks or mobile service providers.
MOTO (Mail Order/Telephone Order)
Designed for manually keying in transactions received by phone or mail orders.
Businesses primarily taking payments over the phone or through mail orders.
Aggregated/Third-Party
Multiple businesses share a single merchant account, often with lower fees for smaller merchants.
Startups, individual sellers, or businesses with lower transaction volumes seeking cost-effective solutions.
Enterprise
Customized packages with advanced features to cater to high-volume businesses.
Large businesses with significant transaction volumes requiring a tailored solution.
High-Risk
Often have stricter terms and higher fees due to the perceived risk of fraud or chargebacks.
Businesses in industries like travel or gambling that might be considered high-risk by traditional providers.
Low-Volume
Streamlined fee structures for businesses with minimal transaction volume.
New businesses or those with low sales volume seeking a simple and affordable option.
Non-Profit
Special pricing structures and support for processing donations.
Non-profit organisations that require a merchant account for accepting donations.
International
Enables multi-currency processing for international businesses.
Businesses with international operations or accepting payments from customers abroad.
How Do Merchant Accounts Work?
A customer completes a purchase using a credit or debit card, and the merchant (business) sends the customer’s card details and purchase amount to the payment processor to initiate a transaction.
The payment processor forwards the transaction details to the card issuer (bank), which verifies the availability of funds and sends an authorisation response.
If approved, the payment processor notifies the merchant, and the transaction proceeds; if declined, the merchant informs the customer.
Upon approval, funds are reserved in the customer’s account for the transaction.
The merchant consolidates transactions and submits them to the payment processor for processing.
The payment processor transfers the approved funds from the card issuer to the merchant’s bank account, deducting fees.
Processing typically takes 1-5 working days to complete.
How to Choose the Best Merchant Account
As we’ve mentioned, this will depend on your specific business needs as each provider is different (we go into more detail of some of the top UK providers below). However, we’ve also made a general checklist to help you decide:
Compare fees.
Consider your needs.
Read ALL of the fine print.
Review their customer service.
Check out standard and add-on security features.
Costs of Merchant Accounts
The expenses associated with a merchant account can vary significantly based on multiple factors, but we have compiled a rough breakdown of the primary cost elements:
Transaction Fees, which are typically the largest costs, are usually a percentage of each transaction (ranging from 0.25% to 3.5%). However, remember that these rates will probably vary based on factors like card type (debit vs. credit) and transaction volume.
Some providers will also impose a fixed monthly fee regardless of sales volume, ranging from £10 to £75+. In addition, certain providers may charge a one-time setup fee for account activation and processing. Lastly, exiting a contract prematurel y may incur penalty charges.
Additional factors influencing costs include:
Industry
Transaction value
Payment history
Negotiation ability
Therefore, a rough estimate of total costs based on transaction volume could be:
Low Volume (under £10,000/month): £20-50 monthly, with transaction fees as the primary expense.
Medium Volume (£10,000 – £50,000/month): £50-100 monthly, with a more balanced contribution from transaction and monthly fees.
High Volume (over £50,000/month): Costs vary, but negotiation opportunities exist, though expenses can still be substantial depending on the provider and plan selected.
Merchant Account Providers
At a glance, below is a table of the biggest UK merchant account providers, their minimum cost per month and their most reputable features:
Provider
Main Feature
Transaction Fee
Worldpay
Established player a wide range of services
Pay as you go (2.75% + 20p) or pay monthly (0.75% debit, 2.75% credit)
Barclays Merchant Accounts
Competitive rates for low turnover businesses (<£240,000)
1.75%
Lopay
Incredibly low fees
0.79%
Stripe
Popular online payment gateway, simple integration
1.5% + 20p
Square
Easy-to-use POS system for in-person payments
1.6% + 10p
PayPal
Widely recognised brand, ideal for online transactions
1.9% + 30p
Takepayments
Bespoke pricing for medium to large retailers
0.3% – 2.5%
Elavon
Global reach, suitable for multi-currency transactions
Varies
GoCardless
Specialist for recurring payments
Varies
Clover
POS system with advanced features for restaurants & retailers
1.69%
Opayo
Established provider with international reach
1.2% + £10 per month
Takepayments
Our performance rating of Takepayments out of 5 stars:
Our Overall Rating
4.8 out of 5 stars
Pr ocessing Rates and Fees
4 .2 out of 5 stars
Account Approval and Risk Management
5 out of 5 stars
Payment Processing Speed
5 out of 5 stars
Security and Compliance
4 .9 out of 5 stars
Customer Support
4 .9 out of 5 stars
What other people think of Takepayments:
Real Customer Reviews:
Summary of Takepayments:
Takepayments is a merchant account provider that stands out for its exceptional ease of account approval, risk management, and speedy payment processing speed. Customers also highly rate security and customer support. While processing rates and fees receive a slightly lower score, Takepayments offers bespoke pricing for medium to large retailers, potentially making it a cost-effective option depending on your business volume.
Positive customer reviews:
Negative customer reviews:
Takepayments : Video from a user’s perspective:
Takepayments : Visual from a user’s perspective:
Takepayments : The design & how it affects users:
The Takepayments card machines are designed with a user-friendly interface, which minimises the learning curve for staff. They are suitable for businesses with high volume, as they are optimised for quick transactions. Each device is PCI compliant, offering robust security as a standard, ensuring that your customer data is handled securely. In addition, they have a friendly team of experts who can help with the setup, or any follow-on concerns once you get going.
Takepayments : What sets it apart from its competitors?
Takepayments tailored transaction fees offer users bespoke rates, making them suitable for such a wide range of business needs. If you have a Barclay card business merchant account, you will incur no monthly merchant account fees. We think they are a reliable choice for small-medium-sized businesses.
Features of Takepayments
What we love most about Takepayments is their transparent pricing and that they will tailor their transaction rates to best suit your business requirements. Another bonus is that monthly fees are waived when linked with a Barclaycard Business merchant account, enhancing affordability.
They also offer a v ariety of payment methods, from card readers to phone/mail orders and unique checkout links. Takepayments offers diverse payment acceptance methods, catering to varied customer preferences.
With support for 170 currencies , Takepayments accommodates businesses with international clientele, facilitating seamless transactions across borders.
They also offer real-time inventory tracking , which aids businesses in efficiently managing stock levels, ensuring optimal inventory control.
They pride themselves on their PCI compliance and robust security protocols, which safeguard your data. Takepayments also implement 3D Secure authentication.
Takepayments offers API integration for custom POS software, automating the sales process and enhancing operational efficiency. In addition, while providing essential e-commerce integration, Takepayments enables secure online payments through the same merchant account.
Pros and Cons of Takepayments
Takepayments Pros and Cons
Pros
Cons
Tailored pricing
Feature-rich platform
Next-day fund transfer
Excellent customer service
Limited online presence and reviews
No invoice creation options.
We don’t think they are suitable for startups
Our own experience with the pros & cons of Takepayments:
Takepayments have incredibly competitive fees, and customers will pay nothing to get set up. They have also capped their early termination fee at £30 per month for the remaining months, and as their contracts are never more than 18 months, you can be confident that you would not be too out of pocket should circumstances change.
The evolution of Takepayments over the years:
Improvements:
We think that the Takepayments tailored pricing plans are the standout feature of the company, and combined with their excellent customer service, you have a reliable and secure merchant account. They offer a whopping 170 currencies, higher than their competitors (for example, Worldpay offer 120 and RMS offer 100).
Issues:
As mentioned above, many customers seemed surprised when they were charged a hefty early termination fee. In saying this, Takepayments takes their complaints seriously and has responded to almost every negative review on their Trustpilot (which is only 3%!)
How can I purchase Takepayments?
Direct:
You can check their website for the latest deals here .
Or via a reseller:
Merchant Savvy can help you here .
You can check their offers on Epos Now here .
Our concluding thoughts of Takepayments:
In our assessment, Takepayments stands out as one of the top-rated payment processing companies. While there are no setup fees, the £20 monthly account fee may be higher for some, although their transaction fees remain competitive. They are suitable for small businesses and up who are looking for a straightforward and affordable solution. We think that Takepayments may not be the best fit for larger businesses with high transaction volumes or specific requirements. For instance, they lack integrated online stores, which may necessitate using another service.
However, their stellar customer service and diverse payment options, covering countertop, portable, mobile, mail, and telephone orders, are commendable. They lead the way in features, offering an extensive list of 16 e-commerce integrations, including popular platforms like WordPress and WooCommerce .
Takepayments has glowing customer reviews attest to their exceptional customer satisfaction levels. They are an excellent choice for those prioritising scalability and superior customer service.
Worldpay
Our performance rating of Worldpay out of 5 stars:
Our Overall Rating
4 .7 out of 5 stars
Pr ocessing Rates and Fees
3 .9 out of 5 stars
Account Approval and Risk Management
4 .5 out of 5 stars
Payment Processing Speed
4.7 out of 5 stars
Security and Compliance
5 out of 5 stars
Customer Support
4 .6 out of 5 stars
What other people think of Worldpay:
Real Customer Reviews:
Summary of Worldpay:
Worldpay is a well-established and reviewed merchant account provider with a solid overall rating. It excels in security and processing speeds, and account approval and customer support are outstanding. However, processing rates and fees are the areas where Worldpay scores slightly lower based on customer reviews. While Worldpay offers a reliable and secure service, it might not be the most cost-effective option for all businesses.
Positive customer reviews:
Negative customer reviews:
Worldpay : Video from a user’s perspective:
Worldpay : Visual from a user’s perspective:
Worldpay : The design & how it affects users:
While Worldpay may not be the sleekest or most aesthetically designed system, they are incredibly sturdy and reliable little machines that will work hard for you.
Worldpay : What sets it apart from its competitors?
The biggest drawcard for Worldpay is its integrations, which can be tailored to even the most complex of business needs. Users love that they can create an almost entirely bespoke interface for an incredibly reasonable price.
Features of Worldpay
Worldpay offer their users global payment capabilities allowing them to conduct transaction in a range of currencies which is great for businesses who have international dealings.
In addition, they offer both traditional merchant accounts and integrated payment solutions which integrates processing and reporting, as well as customer service functions.
Worldpay are also renowned for the fraud prevention measures, utilising Fraud Sight , a robust fraud screening tool. In addition they offer a safer payments program where b usinesses can ensure compliance with Payment Card Industry Data Security Standard (PCI-DSS) requirements.
Their online portal, Worldpay qi, provides account management functionalities such as accessing transaction data, as well as the option to view invoices, and generate reports.
Worldpay also offers round-the-clock support via phone, email, and online chat to address customer inquiries promptly.
Pros and Cons of Worldpay
Worldpay Pros and Cons
Pros
Cons
Worldpay boasts a long history and formidable reputation in the merchant services industry.
Worldpay offers a comprehensive suite of services beyond just payment processing.
Worldpay’s solutions cater to businesses of all sizes, from startups to large enterprises.
Complex Pricing Structure
Limited Customer Support Reviews
Not the Cheapest Option
Our own experience with the pros & cons of Worldpay:
The evolution of Worldpay over the years:
Improvements:
Worldpay mobile card machines connect with EE, Vodafone or O2, and also offers wi-fi as a backup. Worldpay is renowned for its reporting capabilities and the addition of Worldpay from FIS, which allows remote payments. Their comprehensive suite of services and ability to tailor bespoke packages makes them an attractive option as a merchant account provider.
Issues:
Worldpay has one of the higher contract lengths, with 18 months being standard. They can also be on the more expensive side compared to some other providers we have reviewed, but we think that their integrated solutions, fraud prevention measures and 24/7 customer support makes up for it.
How can I purchase Worldpay?
Direct:
You can find all you need to know on their website here .
Or via a reseller:
Amazon sell their terminals here .
You can restock on printer rolls here .
Our concluding thoughts of Worldpay:
Worldpay stands out as an industry leader offering comprehensive solutions for businesses of all sizes. While its transaction fees are competitive, particularly for larger enterprises, there is room for improvement in transparency, contractual terms, and customer service.
With high ratings for features, payment processing, and customer support, combined with fast payouts and multi-currency capabilities, Worldpay is an ideal choice for SMEs aiming for rapid scalability. With over 100 integrations across 26 categories and top-notch customer support, Worldpay excels in providing seamless integration and comprehensive assistance to its clients.
Although not the most budget-friendly option, Worldpay’s reputation as one of the world’s largest and most trusted payment processors justifies its pricing.
Lopay
Our performance rating of Lopay out of 5 stars:
Our Overall Rating
4 .8 out of 5 stars
Pr ocessing Rates and Fees
5 out of 5 stars
Account Approval and Risk Management
4 .7 out of 5 stars
Payment Processing Speed
4 .5 out of 5 stars
Security and Compliance
4 .6 out of 5 stars
Customer Support
5 out of 5 stars
What other people think of Lopay:
Real Customer Reviews:
Summary:
Lopay stands out to us for its competitive pricing, and customer reviews show that they are a cost-effective option for businesses. Additionally, customer support reviews indicate a high level of service. Account approval, payment processing speed, and security also all score very highly through our reviews, and customer reviews.
Positive customer reviews:
Negative customer reviews:
Lopay: Video from a user’s perspective:
Lopay : Visual from a user’s perspective:
Lopay : The design & how it affects users:
Lopay provides a convenient solution for mobile businesses by offering a tap-to-pay feature directly on your smartphone, eliminating the need to invest in additional hardware. However, if needed, they also offer card readers and business terminals for those who require them.
Lopay : What sets it apart from its competitors?
Lopay receives high ratings overall due to its excellent product and top-notch customer service. Although it may not have as many customer reviews as some of its more established competitors, the Lopay team consistently demonstrates their commitment to their expanding customer base. Their fees are competitive, and with the tap-to-pay option, businesses can get started within minutes.
Features of Lopay
Lopay Can onboard the new customers in minutes or hours rather than the days a week that some of their competitors can take.
By partnering with Stripe, Lopay are able to offer lower transaction fees for their users as they can keep their overhead costs low.
Lopay offers an enticing rewards visa card which gives users instant access to their payouts and the ability to earn a percentage of their spending back in processing credits. For example, if users were to make a £100 purchase on their card they wouldn’t pay fees for the next £25 of customer transactions.
The Lopay app provides leading reliability for its users’ payments, and it is able to do this because Stripe delivers 99.999% uptime.
Pros and Cons of Business
Pros and Cons
Pros
Cons
Low fees
Great app that is well received by users.
No need to invest in hardware
Not suitable for businesses with complex payment needs
Relatively new to the industry
Our own experience with the pros & cons of Lopay:
Lopay is very transparent with its pricing, offering straight-up explanations on its website with no hidden fees for customers. We also love that you earn rewards with them for every £1 fee-free transaction, meaning the more you use their tap-to-pay system, the less you pay.
The evolution of Lopay over the years:
Improvements:
Lopay’s tap-to-pay feature is a brilliant solution for businesses reluctant to incur upfront costs on terminals. All you need to get started is an iPhone XS or any device running Android 10 or above.
Issues:
It’s important to mention that Lopay relies on Stripe’s payment platform for its core technology. While this isn’t necessarily a drawback, it’s certainly something to be aware of when considering the service.
How can I purchase Lopay?
Direct:
You can check out their website here .
Or via a reseller:
You can buy accessories for their hardware here .
Our concluding thoughts of Lopay:
Lopay offers an excellent merchant account solution tailored for start-ups and sole traders, including taxi or Uber drivers, and food vendors. Ideal for those who prefer not to invest in or lease hardware and primarily handle simple and straightforward payments, Lopay provides a seamless and user-friendly app interface, as evidenced by their positive app store reviews. If you’re content with weekly payouts, Lopay’s competitive fees make it particularly attractive for small businesses. However, opting for next-day payouts will result in higher fees. For businesses with uncomplicated payment requirements, Lopay presents a suitable and efficient solution.
Barclays Merchant Accounts
Our performance rating of Barclays Merchant Accounts out of 5 stars:
Our Overall Rating
2 .2 out of 5 stars
Pr ocessing Rates and Fees
2 .5 out of 5 stars
Account Approval and Risk Management
2 .7 out of 5 stars
Payment Processing Speed
2 .5 out of 5 stars
Security and Compliance
1 .3 out of 5 stars
Customer Support
3 out of 5 stars
What other people think of Barclaycard:
Real Customer Reviews:
Summary:
Users like that Barclaycard offers user-friendly card machines with a convenient pay-as-you-go option and a well-regarded app for managing sales, ideal for startups and seasonal businesses. However, there are many reviews that have hidden fees, potentially high transaction fees for low-volume users, and mixed customer reviews are drawbacks to consider.
Positive customer reviews:
Negative customer reviews:
Barclays Merchant Accounts: Video from a user’s perspective:
Barclays Merchant Accounts: Visual from a user’s perspective:
Barclays Merchant Accounts : The design & how it affects users:
Barclaycard pride themselves on having a bestselling, easy to use range of products.
Barclays Merchant Accounts : What sets it apart from its competitors?
The Barclaycard anywhere app allows customers to track and manage sales and payments anywhere, making it a big drawcard for users.
Features of Barclays
Barclays allows its users to accept multiple payment methods and offers a variety of card machines and terminals catering to a wide range of different business types and transaction volumes, giving their customers flexibility to choose the most suitable option for their specific needs.
Barclays offer competitive rate s and transparent pricing plans which they can tailor to specific business types and transaction volumes. They are renowned for being very reasonable especially for businesses with consistent transaction flows.
Depending on the account setup, Barclays can offer reasonable settlement times , allowing businesses to receive funds from processed transactions within 2-3 business days.
By prioritising security, Barclays ensures the integrity and confidentiality of payment processes for businesses and their customers.
Pros and Cons of Barclays
Barclays Pros and Cons
Pros
Cons
Barclays Merchant Accounts offer attractive transaction fees, particularly for businesses with a turnover below £240,000 per year.
Being a Barclays customer offers additional benefits.
Barclays is a well-established bank with a compelling reputation.
Limited Features
Strict Application Process
Limited Customer Service Options
Our own experience with the pros & cons of:
To make the most of Barclaycard services, you’ll need to have relatively stable financial records, as they are not well-suited for high-risk merchants. While they have a well-received app, it’s worth noting that the app experience varies for users based on their fee structure, which can be somewhat disappointing.
The evolution of over the years:
Improvements:
Barclaycard’s smartphone app is definitely one of its biggest drawcards. Its machine is simple to use and connects with the app seamlessly, making it ideal for seasonal businesses or individual sellers/sole traders.
Issues:
We’ve noticed that while Barclaycard offers next-day payouts, they are only for existing Barclays customers. So, while there are benefits to these customers, it may be worth reading the fine print when signing up if you are not.
How can I purchase Barclays Merchant Accounts ?
Direct:
You can check their bestselling card readers out on their website here .
Or via a reseller:
You can also find them on Amazon here .
Our concluding thoughts on Barclays Merchant Accounts :
We will give credit to Barclaycard as it stands out for its flexibility by offering three card machine options that cater to diverse business needs. With lower-than-average transaction fees and no long-term commitments with their PAYG model, it’s an attractive choice for businesses seeking customisability. Particularly beneficial for small ventures or startups, its pay-as-you-go model aligns with the needs of businesses with fluctuating transaction volumes. However, despite its competitive transaction fee of 1.6%, Barclaycard’s overall rating of 2.2/5 is due to its subpar customer service.
Stripe
Our performance rating of Stripe out of 5 stars:
Our Overall Rating
4.2 out of 5 stars
Pr ocessing Rates and Fees
4.5 out of 5 stars
Account Approval and Risk Management
4 out of 5 stars
Payment Processing Speed
4.6 out of 5 stars
Security and Compliance
4.7 out of 5 stars
Customer Support
3 out of 5 stars
What other people think:
Real Customer Reviews:
Summary:
Stripe offers a convenient and secure payment processing solution with a somewhat mixed overall rating from customers. While it excels in processing and security, customer support receives a lower score with a wide range of complaints from users worldwide. Account approval and pricing are satisfactory, however.
Positive customer reviews:
Negative customer reviews:
Stripe : Video from a user’s perspective:
Stripe : Visual from a user’s perspective:
Stripe : The design & how it affects users:
Stripe integrates with a range of online shopping carts, so you do not need to invest in any hardware if you don’t want to. This makes them a quick and suitable solution for ecommerce businesses who do not have a brick-and-mortar store.
Stripe : What sets it apart from its competitors?
We like Stripe as it is a versatile solution for primarily online businesses that would like to attach a merchant service to their shopping carts. They offer robust solutions that can manage extensive subscription services and periodic transactions.
Features of Stripe
Stripe offers all its customers 24/7 support , with an average response time to emails being 24 hours, and chat and phone support being 3 minutes. Users can use their live chat support feature to help resolve technical issues.
They are PCI-certified at Level 1 and undertake regular SOC1 and SOC2 audits to ensure compliance at all times. They also provide customers with on-call security experts and a wide range of other additional security benefits.
They offer users a massive library of plugin s, some of which include Mailchimp, Hubspot, Xero and SimplyVAT. They also partner with BigCommerce, Amazon, Salesforce, Shopify, WordPress and Wix.
They are available in over 46 countries , enabling users to conduct business globally. Customers can also charge their customers in their native currency and receive their funds in whichever preferred currency is chosen.
Their Direct and Standard accounts have access to the Stripe Dashboard on the mobile app (for iOS and Android users). With this app, users can track earnings, receive notifications, complete refunds and monitor their customers activity.
Pros and Cons of Stripe
Stripe Pros and Cons
Pros
Cons
User-friendly interface
Effective technical support
Well-reviewed mobile app
No monthly fees
Seamless dashboard
Strong security measures
Customers dissatisfied with the online payment solutions
Our own experience with the pros & cons of Stripe:
We think Stripe is one of the best online merchant payment solutions, however, we think that there in person terminals are not the best on the market. They offer competitive fees and a pretty straightforward setup process. However, this will depend slightly on your type of business.
The evolution of Stripe over the years:
Improvements:
We love that Stripe gives users the flexibility to create a fully customisable checkout, allowing you to add branding and logos to create a professional appearance. They are fully scalable, and can grow with any sized business, offering well-reviewed 24/7 support to all customers.
Issues:
Stripe does Require a little bit of technical ability from the users, with quite a few reviews stating that they have to pay developers to integrate the stripe payment tools onto their websites.
How can I purchase Stripe?
Direct:
Or via a reseller:
Our concluding thoughts on Stripe:
While we applaud Stripe for its transparent transaction fees, these will vary based on your location and the payment you receive, confusing the process. We love that they are available in over 130 currencies spanning 46 countries, allowing businesses an international reach that may otherwise be limited. While some may find their setup a little tricky, they offer developer-friendly APIs that businesses can easily customise to suit their branding, integrating payment solutions seamlessly into apps and websites. Overall, we think Stripe is a top choice for online businesses.
Square
Our performance rating of Square out of 5 stars:
Our Overall Rating
out of 5 stars
Pr ocessing Rates and Fees
out of 5 stars
Account Approval and Risk Management
out of 5 stars
Payment Processing Speed
out of 5 stars
Security and Compliance
out of 5 stars
Customer Support
out of 5 stars
What other people think of Square:
Real Customer Reviews:
Summary:
Square users like that they offer no monthly fees and have powerful app features and multiple payment options (in-person, online, remote). However, Square might not be perfect for everyone due to its occasional customer service issues and reports of frozen accounts.
Positive customer reviews:
Negative customer reviews:
Square : Video from a user’s perspective:
Square : Visual from a user’s perspective:
Square : The design & how it affects users:
Square prides itself on making things simple and easy to use. Their products make it easy to manage and streamline interactions without fuss. In addition, they offer the ability to manage your team, making their products suited to the hospitality industry.
Square : What sets it apart from its competitors?
What sets Square apart is that it offers customers the opportunity to pay as you go, saving them from committing to a lengthy contract. It also provides face-to-face, online, and remote payment tools and a free app that complements all its products.
Features of Square
Square boasts a user-friendly setup process, which allows businesses to register and commence accepting payments via their mobile app swiftly – no convoluted applications or intricate configurations are necessary.
Also, from the fundamental and cost-effective Square Reader to the sophisticated Square Register equipped with touchscreen functionality and receipt printing capabilities, Square offers a variety of card readers to accommodate varying business needs.
Square also implements a fixed transaction fee (approximately 1.69%) per card payment, which is appealing to businesses with predictable sales volumes seeking cost-effective solutions.
Pros and Cons of Square
Square Pros and Cons
Pros
Cons
Easy-to-Use POS system
Integrated payment processing:
Mobile payment options
High transaction fees
Limited Reporting features
While Square offers free basic hardware options, additional features or functionalities require purchasing specific card readers/stands
Our own experience with the pros & cons of Square:
The square card readers come at a very desirable price point making them accessible for a wide range of businesses, making them extremely versatile. They have a fixed transaction rate and offer the ability to simply use the payment app without even needing to buy any hardware.
The evolution of Square over the years:
Improvements:
Square really stand out to us by not charging their users a monthly fee or requiring users to sign up to any contract. They also have an instant payout option and a vast array of online payment tools depending on your needs. In addition, they provide a wide range of integrations so you can tailor their products to suit your business needs.
Issues:
This may seem quite trivial due to the vast advantages that come with the square app and readers, but many of their customers complain about the small buttons when entering their pin number, which could slow down transactions. Currently, with most people playing via contactless or using their digital wallet, this is just a minor setback. Their customer service could also be improved.
How can I purchase?
Direct:
Via the Square website here .
Or via a reseller:
You can find their machines and reviews on Amazon here .
You can also find them on Argos here
Our concluding thoughts of Square:
We think Square is an excellent choice for businesses just starting out and uncertain about their revenue potential. With zero monthly fees, Square offers flexibility, ensuring that you only pay processing charges based on your actual earnings. This makes it particularly suitable for businesses with low or fluctuating transaction volumes. So, whether you’re a brand-new startup or a larger enterprise, Square’s affordable fee structure caters to businesses of all sizes, making it a user-friendly and cost-effective POS solution.
PayPal Business Accounts
Our performance rating of PayPal out of 5 stars:
Our Overall Rating
4 .6 out of 5 stars
Pr ocessing Rates and Fees
4.4 out of 5 stars
Account Approval and Risk Management
4.5 out of 5 stars
Payment Processing Speed
4 out of 5 stars
Security and Compliance
5 out of 5 stars
Customer Support
3 out of 5 stars
What other people think of PayPal:
Real Customer Reviews:
Summary of PayPal:
Customer reviews of PayPal show that it excels in ease of use has no monthly fees and integrates well with sales tracking and inventory management. However, their customer service has been rated poorly, and their payment processing can be slow (2-3 days). Additionally, PayPal might not be the best fit for online sellers due to higher fees than competitors and a lack of some ecommerce features.
Positive customer reviews:
Negative customer reviews:
PayPal : Video from a user’s perspective:
PayPal : Visual from a user’s perspective:
PayPal : The design & how it affects users:
PayPal business accounts are perfect for small to medium-sized businesses, as they offer a range of straightforward integrations such as sales tracking and inventory management. They are well known for their affordable, user-friendly innovations. PayPal also offers the Zettle Go app, which gives users the option to pay via a link.
PayPal : What sets it apart from its competitors?
PayPal’s platform is one of the biggest of all the providers we have reviewed, and that gives it a big advantage over its competitors, and it is incredibly easy to set up and use.
Features of PayPal
The PayPal Merchant Account setup is typically hassle-free, making it ideal for businesses seeking a swift and simple solution, even without advanced technical knowledge.
We think that customers can also benefit from PayPal’s widely recognised brand name, fostering confidence and familiarity among customers at the checkout.
With PayPal, you can expand your business reach with PayPal’s ability to accept payments from customers worldwide, supporting transactions in multiple currencies and catering to international sales.
With PayPal, integration complexities are minimised., and customers can conveniently use their existing PayPal accounts, which streamles the checkout experience without requiring intricate setup procedures.
PayPal also offers seller protection initiatives, safeguarding businesses against potential losses due to fraudulent chargebacks, enhancing security and providing reassurance.
Pros and Cons of PayPal
PayPal Pros and Cons
Pros
Cons
One of the most popular payment processors
Very easy to integrate with online shopping carts.
Transparency with fees
Not suitable for high-risk businesses
Mixed customer reviews
Our own experience with the pros & cons of PayPal:
PayPal integrates with hundreds of different shopping carts, POS systems, accounting products, and much more. We think they have some of the best security and seller protection of all the providers we have reviewed, and we like that they offer their users the ability to set up customised subscription options and other valuable incentives.
The evolution of PayPal over the years:
Improvements:
PayPal is super straightforward and easy to use, which we think is the biggest advantage of using their merchant services. They are also incredibly safe to use, and you can incorporate a huge range of shopping cart systems to create a fully customised shopping experience.
Issues:
PayPal does have somewhat expensive chargeback fees. However, they do have incredibly competitive merchant fees.
How can I purchase PayPal?
Direct:
You can buy their readers via their website here .
Or via a reseller:
Amazon also stock their readers here .
You can also find them on Card Pay Accept here .
Our concluding thoughts of PayPal:
PayPal serves as a convenient and reliable payment solution, particularly beneficial for new businesses seeking quick setup and online sales. For new businesses or eCommerce merchants, PayPal offers a range of robust selling tools, especially for international sales. While its in-person sales tools are simpler, the processing rate remains competitive. In addition, we like its user-friendly platform and widespread acceptance instil consumer trust, making it suitable for both primary and backup payment methods.
PayPal’s fixed per-transaction fee for online sales can impact small-ticket sellers negatively. Despite this, PayPal’s ease of use and extensive features make it a solid choice for various businesses, catering to their diverse processing needs effectively.
Elavon
Our performance rating of Elavon out of 5 stars:
Our Overall Rating
4 .4 out of 5 stars
Pr ocessing Rates and Fees
4 .5 out of 5 stars
Account Approval and Risk Management
4 .5 out of 5 stars
Payment Processing Speed
4 out of 5 stars
Security and Compliance
4 .6 out of 5 stars
Customer Support
4 .2 out of 5 stars
What other people think of Elavon:
Real Customer Reviews:
Summary:
Customer reviews highlight Elavon’s extensive range of stylish card machines, POS systems, and integrations (over 180!). However, concerns about their lack of pricing transparency, potential high costs, lengthy contracts (typically 3 years), and limited customer support make them a less appealing choice for businesses focused on affordability and user-friendliness.
Positive customer reviews:
Negative customer reviews:
Elavon : Video from a user’s perspective:
Elavon : Visual from a user’s perspective:
Elavon : The design & how it affects users:
Elavon gives users the option to do pre-authorisation checks on guests, which is particularly useful for hotel or bed and breakfasts.
Elavon : What sets it apart from its competitors?
As a major player in the industry, Elavon processes over 6.6 billion global transactions annually and ranks among the top-five global payment processors. Elavon stands out with an extensive catalogue of business integrations, boasting over 180 options, which enables businesses with diverse requirements to easily incorporate desired features into their merchant services. They also have great rates for non-profits!
Features of Elavon
Elavon provides support for an extensive array of payment methods for users, and also offer a diverse selection of point-of-sale (POS) solutions which are designed to cater to various business types and financial considerations.
Elavon places a paramount emphasis on security, maintaining adherence to PCI compliance standards and implementing advanced fraud prevention mechanisms for their users.
Pros and Cons of Elavon
Elavon Pros and Cons
Pros
Cons
Elavon boasts a strong international presence.
Elavon has experience catering to high-risk industries where traditional payment processors might be hesitant.
Elavon offers robust solutions with advanced features and integrations suitable for large or complex businesses with high transaction volumes.
Pricing Complexity
Focus on Enterprise Clients
Limited Online Presence
Our own experience with the pros & cons of Elavon:
One significant advantage of Elavon is the provision of a dedicated merchant account tailored to your business needs, which can be particularly beneficial for larger companies. This feature might justify their higher pricing compared to many competitors.
The evolution of Elavon over the years:
Improvements:
The Elavon app is provided for free and includes many features that are not typically found in complimentary apps. For instance, you can apply VAT and discounts to purchases, utilise tipping functions, and send email or text receipts. The app even allows for cash transactions. Elavon’s MobileMerchant service doesn’t require a long-term contract but do note that it comes with higher fee rates.
Issues:
Despite being a major player in the industry, Elavon’s customer service often falls short of expectations for such a large company. Some businesses have even struggled to operate due to the lack of support provided. Additionally, Elavon’s pricing isn’t transparent, and reviews complain about high prices. Given this and the extensive integrations they offer, they might not be the most cost-effective option available.
How can I purchase Elavon ?
Direct:
You can find the latest information on their products via their website here
Or via a reseller:
Santander provide information on their collaboration here .
You can find compatible terminals here .
Our concluding thoughts of Elavon :
Based on the available information on the Elavon website, it’s challenging to assess whether it’s a suitable merchant services provider for your business. Unlike transparent companies like Stripe, Elavon requires you to request a quote even for basic service details. The website lacks clarity on rates, funding times, and additional fees, focusing more on marketing hype than specifics.
Their customer feedback indicates issues with accounting, delayed payments to merchants, and inadequate customer support. The negative consumer experiences raise concerns about signing up with Elavon, so we think that to make an informed decision, you’ll need to complete the quote process and compare Elavon with other providers in the market.
Merchant Account FAQS
How do I Acquire a Merchant Account
Your first step in accepting credit and debit cards is applying for a merchant account, which is the initial step in accepting payments into your bank account. There are several factors to consider when choosing the perfect merchant account, such as fees and security: research all options thoroughly before making your final choice.
How do I get approved for a Merchant Account ?
The most common way to acquire a merchant account is through traditional acquiring banks. This option is more reliable as they are more accommodating with pricing and can tailor your merchant account according to specific business needs.
However, traditional acquiring banks may only accept your application if your business is in a risky industry or needs a better credit score. In such cases, look into high-risk merchant account providers specialising in small businesses and offer quick approval processes.
How does a Merchant Account Provider Make Money ?
Merchant account providers (MAPs) earn money by partnering with banks and charging their clients’ bank associations, set-up, and transaction fees. These fees help compensate for the low profit margins experienced on merchant accounts; however, not all MAPs have the same fee structure.
How do I select the Appropriate Third-Party Payment Service Provider
Deciding on a merchant account provider is no small feat, yet it’s essential for your business’ success. Factors like fees, security and compliance, and how much support you can expect from them should all be considered when making this choice.
How long does it take to receive merchant funds?
For traditional retailers, money from credit and debit card transactions can be deposited into your business bank account within one to three days. Conversely, for internet-based retailers, funds are immediately released after the acquiring bank approves the transaction.
Why Are Merchant Accounts Important?
Merchant accounts enable businesses to accept debit and credit card payments from customers. These accounts can be found through banks, payment processing providers, and payment gateways. Though establishing an account may seem complex at first glance, it’s necessary for any online business.
What are Retail and Mail Order/Telephone Order (MOTO) Accounts
Brick-and-mortar retailers can benefit from a retail merchant account, which enables them to process card-present transactions in person. While these accounts are more costly than other options, they provide greater security and an improved chance of approval.
Depending on your business model and location, you may qualify for a mail-order or phone-order account. With these merchant accounts, you can accept debit and credit cards via mail or phone.
How do Merchant Accounts Process Credit Cards?
You have two options for processing debit and credit cards: use your business bank account or collaborate with a third-party company to collect funds and send them directly to your official checking account. Both options provide convenience and security when handling credit or debit card payments.
How do I apply for a merchant account?
The application process is typically quick and effortless, but it’s wise to do your due diligence and compare multiple options before selecting which company best meets your needs. When choosing, look for an affordable rate, low minimum balance requirement, and a reputable customer service record.
How do I find the right Merchant Account Provider?
Finding a merchant account that meets your needs requires comparing several options. When making your decision, be sure to consider fees and customer support.
Some of the most popular merchant accounts include PayPal, Barclays, and HSBC. These accounts provide various features and services that simplify your online business operations, from managing customer payments to increasing sales.
How do I register for a Merchant Account ?
Registering for a merchant account requires filling out an application form and providing evidence of your business’s financial stability. After reviewing your information, a merchant provider will approve your application.
Once approved, you’ll have an account with a card processor who works directly with card networks (Visa and MasterCard), card issuers (the customer’s bank), and the terminal payment provider to clear transactions into your bank account. Within days, funds from customers’ card payments will arrive in your business account, which can be used to fund operations.
Why do Merchant Accounts Charge a Monthly Fee?
Merchant services companies charge you a monthly fee to cover the costs of providing software and hardware necessary to accept credit and debit card payments. This may include a gateway fee, minimum fee payment requirement, and PCI compliance fee.
What is Internet or Mobile Accounts?
Internet or mobile accounts refer to online or digital accounts that individuals or businesses use to access banking services, manage finances, make transactions, and conduct various financial activities through internet banking platforms or mobile banking applications. These accounts provide convenient access to banking services anytime, anywhere, using internet-connected devices such as computers, smartphones, or tablets.
What are Wireless Mobile Merchant Accounts?
These accounts enable you to accept credit and debit card payments from your smartphone or tablet, making them ideal for businesses that frequently travel, such as food trucks or industry shows, where payment processing must occur on the go.
What are the key benefits of a Merchant Account?
Avoid bad checks.
Increase Sales
Better money management
Accept credit cards.
Customer convenience
What is the difference between a merchant and a regular account?
A merchant account is a business account with a payment aggregator. The funds you receive in this account from the issuing bank are transferred to the linked bank account as per the payment gateway settlement cycle.
Do I need a Merchant Account?
Reasons you might need a Merchant Account:
If you wish to accept credit or debit card payments from customers.
If you sell goods or services online, a merchant account facilitates online transactions.
To provide convenient payment options for your customers, enhancing their shopping experience.
Having a merchant account can enhance your business’s professional image, fostering trust and credibility among customers.
Especially beneficial for businesses with high transaction volumes, as it streamlines the payment process.
Reasons you might not need a Merchant Account:
If your business primarily deals with cash transactions and doesn’t require card payment processing.
For businesses with minimal transaction volumes, the need for a merchant account may be less pressing.
If you prefer invoicing or direct bank transfers, particularly applicable to service-based businesses.
Businesses operating on a seasonal or temporary basis may not require a merchant account year-round.
If you prefer a simple payment process without the complexities associated with merchant accounts.
If you opt to use online payment processors like PayPal or Stripe, which offer alternative payment solutions.
What sets apart a merchant account from a regular bank account?
A typical business bank account oversees financial matters, while a merchant account is tailored for processing electronic payments, particularly card transactions.
How does a merchant account differ from a payment gateway?
While a merchant account manages financial tasks like transaction approval and fund handling, a payment gateway ensures secure transmission of payment data between your website and the bank, ensuring a safe and smooth transaction process.
What distinguishes a merchant account from a payment processor?
A merchant account, a specialised bank account, facilitates card payments for businesses, focusing on monetary transactions. Conversely, a payment processor is a service that manages data processing, handling technical transaction aspects to ensure secure processing among the merchant, customer, and bank.
Merchant Account Providers & related articles:
James Ward is CEO and founder of CompareYourBusinessCosts.co.uk, a website that won the Prestigious ‘Website of the Year’ only in its second year of operations in 2015. The website has grown organically since then offering comparisons on over 20 different products including insurance, energy, telecoms, card machines, coffee machines and much more. James has a range of interests including horse racing, skiing, rugby and boxing. He splits his time between home family life, friends, exercise and socialising.