Best UK payment
gateways compared

Payment gateways are the virtual equivalent of a credit card machine, they work by encrypting and transferring the payment information received during an online or offline transaction. The payment gateway checks to see whether the payment should be authorised or declined. If the transaction is authorised the payment moves from the payment gateway to the merchant account, before finally settling into the merchant’s bank.

There are two main payment options available, which will depend on the service your business requires. It is possible to choose a basic payment gateway, or a complete payment service provider, which offers both a payment gateway and a merchant account.

The cheapest payment gateway will charge the lowest set-up fees, monthly fees and transaction charges. It is important to compare these separate costs if you want to find the most competitive deal. Depending on the type of business you operate, a provider charging more for a monthly fee with lower transaction charges, may save you money if you process lots of transactions. In comparison, if you are a smaller business, a lower monthly fee and more expensive transaction charges may work out to be more cost effective.

The difference between a gateway and a virtual terminal is the way the card details are processed. A virtual terminal requires the merchant to enter the customers card details into the terminal, whereas a payment gateway asks for the customer to enter their own card details. Typically, a payment gateway is used for online transactions, whereas a virtual terminal is used for face to face sales or telephone orders.

Payment gateway fees will vary significantly between providers, with some charging fees based on the whole service provided, and others charging separate fees for the merchant account and the payment gateway. In general, payment gateways will charge monthly fees, with additional charges for various optional services. In addition, your business will need to pay transaction fees, which may be a set amount per transaction, alongside a charge based on a percentage of each transaction.

To create a payment gateway you will typically need a UK bank account, a website and an email address. Depending on the gateway provider you choose, you may also need to answer some questions about your business. The simple payment service providers offer a merchant account as part of their package, however, if you also need to open a merchant account you may need to show sales projections and a business plan.

There are several payment types which you can process with a virtual terminal, as the software allows you to turn your tablet, smartphone or computer into a point of sale connection. This means you can process card payments over the phone or in person, simply enter the card details which your customer provides along with the verification checks and the transaction will be processed.

Yes, gateways are secure, with the best payment gateways making it possible for merchants to implement the highest levels of security. The Payment Card Industry Data Security Standard (PCI DSS) is guidance which is designed to help both merchants and financial payment processors provide secure solutions. For example, a gateway is designed to ensure that all data is encrypted when transferred to the payment processor for authorisation, this means it cannot be stolen and used for fraud.

Yes, you can setup recurring payments with some payment gateways. This will enable your business to accept automatic payments at regular times, using your customers card details. The following are examples of payment solutions which offer support for recurring payments; Cardsteam, Amazon Pay, Stripe, Square and PayPal.

Yes, you can process international payments with some payment gateway providers. For example, PayPal, Verifone and Stripe all support international payments. If your business operates within global markets the best payment gateway will be the one which offers the lowest fees for the currencies which you accept.

Yes, it is possible to integrate with existing systems, although there are some restrictions which vary between providers. If you already have systems in place such as an eCommerce website, it is important to choose a payment gateway which offers integration into your chosen platform, such as Wordpress, Woocommerce and Shopify.

There are some gateways which are easy to use, in comparison to the more complicated platforms. For example, PayPal and Amazon both offer payment gateways with systems which are more likely to be familiar with your customers. This may result in a more seamless payment experience and a reduction in the number of shopping carts which are abandoned.

Collecting payments from customers via a payment gateway will offer your business a simple, secure payment processing method. However, there are some differences between providers, and it is important to compare the options available to ensure you benefit from the best payment gateway service. Here at BusinessComparison, we can help you find the payment gateway which is the best fit for your business. To find out more use our simple comparison service and get the best payment gateway for your business.