Payment Gateway Comparison

There are two main payment options available. Which is best for your business depends on the service you require. It is possible to choose a basic payment gateway or a complete payment service provider, which offers both a payment gateway and a card machine. Both can be integrated with a card machine to allow you to take payments in person.

The cheapest payment gateway will charge the lowest set-up and monthly fees, and transaction charges. It is important to compare these separate costs 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 customer's 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 transactions face-to-face or over the telephone.

Payment gateway fees can 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. Payment gateway providers generally 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 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 that 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 designed to help merchants and financial payment processors provide secure payment solutions. For example, a gateway is designed to ensure that all data is encrypted when transferred to the payment processor for authorisation, meaning it cannot be stolen and used for fraud.

Yes, you can set up recurring payments with some payment gateways. This will enable your business to accept automatic payments at regular times, using a customer's card details.

Yes, you can process international payments with some payment gateway providers. If your business operates within global markets, the best payment gateway will be the one which offers the lowest fees for the currencies 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 or 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 to 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. It's important to compare the options available to ensure you benefit from the best payment gateway service.