Online businesses need to provide a smooth and convenient shopping experience to their customers. When customers move to the checkout page and don’t find their preferred online payment methods, they may be forced to abandon their cart and leave the website without making a purchase, leading to increased shopping cart abandonment. To address this issue, merchants should consider using the best online payment gateway for small UK businesses. This not only allows customers to make instant payments using their preferred payment methods but also allows merchants to run their businesses more efficiently.
To help you make the right choice, we have compiled a list of the best online payment gateways. Compare the options described in this article and use the tips on choosing the most suitable payment gateway to pick the best option available.
Types Of Payment Gateways
Payment gateways enable online businesses to connect to a payment processor, ensuring a streamlined checkout experience. When selecting an online payment system for small business in the UK, business owners come across multiple available options. However, what are the various kinds of payment gateway for small businesses in the UK? Here is what you need to know.
Redirects
When a customer clicks on the 'Buy' button on a merchant website, the payment gateway system redirects them to the payment service provider's website. The customer must then enter their relevant card or bank account details to confirm the purchase. Upon completion, the customer is returned to the merchant's website to receive their order confirmation. To promote customer confidence, merchants can include their logo on the payment page.
Self-Hosted
The difference between a hosted and self-hosted gateway is that, with the latter, customers' payment details are collected directly on the merchant's website and encrypted before they are sent to the third-party payment gateway for authorisation. This can lead to a faster checkout process, and the merchant is in full control of the user's payment experience. However, self-hosted services do not have access to the same technical support team as hosted services.
API-Hosted
An API-hosted payment gateway is an ideal choice for merchants who want to create a fully customisable checkout experience and take full control of their website design. This gateway type requires extra security measures, such as SSL certification and PCI DSS compliance. The customer inputs their bank account and credit/debit card details on the merchant's website in this payment gateway, which processes payments via HTTPS queries or APIs rather than directing them to a URL page. An API-hosted gateway can integrate with various setups, including mobile devices.
How To Choose The Best Online Payment Gateway For Small Business In The UK
The ideal online payment system for small UK business will make it cost-effective, simple, and secure for your customers to make payments, regardless of where they find your services or products. It should guarantee security, provide you with the ability to manage customer data, and enable an uncomplicated customer experience. More information on the main criteria for choosing the right payment gateway can be found below.
Security & Fraud Prevention
Security should be your top priority when selecting a payment gateway for handling online card payments for your small business in the UK. Ensure that the payment gateway you select meets the highest standards of PCI DSS level 1 compliance and is equipped with advanced anti-fraud technologies and the latest encryption protocols.
Data Portability
On occasion, as an owner of a small business, you may need to switch to a different online payment gateway. It's important to research the gateway's data portability processes and policies to ensure that sensitive information is handled properly. Inquire about tools and support for importing and exporting customer and payment information and if there are any associated fees or delays.
Checkout Experience
The payment gateway must provide a user-friendly interface and a clear path from cart to payment to guarantee a seamless checkout process. Additionally, you need to make sure that the checkout experience is optimised for various mobile devices and networks.
Accepted Payment Options
Offering a large number of online payment options will not only enlarge your customer base but also encourage more sales. If customers are reluctant to use a bank card online, offering alternatives such as e-wallets and bank transfers can increase the likelihood that they will make a purchase.
Compatibility
Depending on what products/services you offer and who you sell them to, your online business will get various customers using different gadgets to make purchases. While some payment gateways may be compatible with all devices, others work only with certain platforms. Therefore, before choosing the best online payment gateway for small business in the UK, research how the gateway performs on different operating systems and mobile devices.
Customer Support
When a small UK business is accepting payments online, issues can arise that can disrupt operations and frustrate customers. To ensure the best possible customer experience and to avoid costly delays, it's important to investigate the support and response mechanisms a gateway has in place. It's essential to consider how quickly the payment gateway support team can respond and what options it offers for tracking and resolving open issues.
Fees
Price and fees are essential criteria when selecting a payment gateway. Compare quotes from multiple gateways to determine estimated costs and fees relative to your business. Consider all fees, including monthly fees, fixed fees per transaction, and extra fees for services such as chargebacks and currency conversions. If your company has a large transaction volume, it is better to focus on the search for a gateway with low transaction costs to make the payment system cost-effective.
Transactions’ Speed
Quick money transfers from customers' bank accounts to yours are essential for providing an optimal end-to-end experience. Choosing the right payment gateway is critical for ensuring your customers don't experience any hiccups in the payment process. The transaction processing involves various steps. However, it should take no more than 72 hours for the payment to be sent to the gateway, verified by the card issuer, and authorised.
Reporting
Online businesses that are accepting payments online need to monitor their sales and revenue to keep track of their success. That is why, prior to cooperating with any online payment systems for small UK business, you should check what types of reports the gateway may generate – custom or standard. Next, find out if there are any fees charged. Do not forget to determine how the reports are accessed.
International Payment
International payments involve financial transactions conducted with foreign currency between two or more parties, one of which is typically a non-resident. For businesses looking to tap into the global market, cooperation with an international payment gateway is essential. Ensure you choose an online payment system for small UK business that supports the countries and currencies in which you want to sell your products and services.
Comparing Best Online Payment Gateways
One of the initial steps in starting an online business is choosing a reliable payment gateway. It not only enables you to collect and process payments in an efficient manner, but it also assists you in improving your customers' shopping experience.
To assist you in making the right choice, below, we provide you with a detailed comparison table for the best online payment gateways for small business in the UK.
Payment Gateway | Available Payment Methods | Number of Supported Currencies | Transaction Fees | Recurring Billing |
Exactly® | Debit/credit cards, Digital wallets | 150+ | Customized pricing | + |
PayPal | PayPal Credit, Credit/debit cards | 20 | 2.9% + £0.30 | + |
2Checkout | SOFORT Banking, Bank cards, E-wallets | 87 | 3.5% + £0.31 | + |
Stripe | Mobile wallets, Electronic wallets, Credit and debit cards, Bank transfers | 100+ | 2.9% + £0.20 | + |
Authorize.net | Major bank cards, PayPal, ACH | 6 | 2.49% + £0.15 | + |
Checkout.com | Major credit and debit cards | 150+ | 2.9% + £0.18 | + |
Braintree | Bank Directs, Debit and credit cards, Automated Clearing House payments | 130+ | 2.59% + £0.44 | + |
Choosing the Right Online Payment System for Your UK Small Business
Taking payments online is crucial for any UK small business. However, selecting the right system can be overwhelming with so many available options. This guide will break down the top contenders, highlighting their pros and cons. You can make a confident choice by understanding how each system aligns with your specific business needs and goals.
Exactly®
Exactly® is known in the UK as an all-in-one solution which offers a highly-optimised payment gateway. It allows you to choose between a hosted or integrated payment page and customise the interface to start receiving payments. Exactly® is compliant with PCI standards and features anti-fraud and 3D Secure 2 systems to enhance customer security. An intuitive dashboard and configurable reports provide users with valuable insights into their online business in a user-friendly manner.
Pros:
Processing of global payments
Personalised pricing plans
Robust API‐driven solutions
Fully customisable reports
Multiple integration solutions
Cons:
Free account trial is not provided
PayPal
It is a simple-to-set-up eCommerce payment gateway, which provides merchants with various services ranging from pay buttons to fully integrated checkouts. However, such opportunities come with higher transaction fees. That is why PayPal's ideal customer is a small business with low-volume transactions. Online businesses that sell their products globally can significantly increase their revenue as PayPal accepts all major debit/credit cards, PayPal Credit, and over ten localised payment methods in more than 100 currencies.
Pros:
No contract and termination fees
Quick and simple setup procedure
Only the most expensive version of the gateway can be customised
Seller’s Protection Program
Cons:
Hidden fees for chargebacks
2Checkout
With 20 years of experience, 2Checkout is one of the oldest international payment gateways. Its interface supports 30 languages, enabling businesses to adapt to their international customers. The 2Checkout gateway offers a transparent, flexible pricing model so that business owners can tailor the fees to their business type. Furthermore, it can be integrated with third-party systems such as Shopify, BigCommerce, and WooCommerce. 2Checkout offers global support to over 200 markets, making it a viable option for international merchants.
Pros:
Transparent fee structure
3-step fraud detection system
40+ accepted payment methods
Cons:
High-risk merchants are not supported
Complex application process
Stripe
As one of the top-notch online payment systems for UK small business, Stripe provides original dashboard reporting features such as integration monitoring, payment history, categorised list of totals for a certain time period, etc. Stripe allows businesses to create their own checkout pages and customise payment forms. Stripe provides a hosted payment gateway, Stripe Checkout, modular UI elements, and an API. Integration with a variety of third-party systems, such as email services, shopping carts, marketplaces, and POS systems, is also available.
Pros:
Easy-to-use interface
No fixed monthly fees
Diversity of integration options
Acceptance of all major bank cards
Cons:
Unresponsive client support team
Authorize.net
Authorize.net, a Visa-owned payment processing platform, is widely used by over 430,000 merchants, processing more than 1 billion transactions per year. It offers a payment gateway for businesses with existing merchant accounts and an all-in-one option that includes a merchant account. The online payment system for UK small businesses charges a fixed monthly account fee and a transaction fee.
Pros:
Competitive pricing
Advanced reporting features
Recurring payments
Strong security measures
Cons:
Poor customer service
A large number of reported locked accounts
Possible overcharging
Checkout.com
It is an all-in-one payment system that provides a payment gateway and a merchant account. The online payment solution allows online stores to accept payments from more than 150 countries worldwide. A one-of-a-kind pricing structure that does not include long-term contract fees makes Checkout.com cost-effective for businesses with low transaction volumes. Checkout.com offers a personalised approach to every merchant, as well as detailed reporting tools and an easy-to-navigate interface.
Pros:
Extensive choice of integrations
Well-suited for businesses selling globally
Low transaction fees
Cons:
No separate mobile app
Braintree
Braintree is an ideal option for small businesses in the UK, offering a range of reporting tools and payment processing features, such as recurring billing and mass payments. It also provides one of the most reliable fraud detection systems, conforming to PCI DSS compliance and SAQ-A standards. As Braintree is owned by PayPal, it allows customers to use their existing PayPal accounts to make purchases in your online store.
Pros:
Fast checkout
Customisable payment system
Intuitive dashboard
Cons:
Not stable customer support
Funds can be retained for extended periods
Exactly® - Your Best Online Payment Gateway For Small Business UK
Exactly® is widely recognised as one of the best online payment systems for small businesses in the UK, due to its diversity in terms of provided services. We strive to provide unparalleled personalisation in each process, strong security and end-to-end payment processing to ensure a seamless buying experience for your customers. With over 100 accepted currencies and 40 languages, you may confidently take your business to the international market.
Send your application today and receive a complete payment processing package that includes a payment gateway, merchant account, payment links, recurring payments and highly-effective real-time reporting tools.
There is no reason to delay the growth of your business, so contact our consultants and let Exactly® take care of payment processing while you focus on developing new business ideas.
Final Thoughts
With the right payment gateway, businesses can ensure secure and straightforward online payment processing, making the purchase process more appealing to customers. To assist you in selecting the most proper online payment system, we have created a list of the best online payment gateways for small business in the UK and provided you with the main choosing criteria.
By examining your business's requirements, you can select the payment gateway that best suits the needs of your online business. Consider the features, cost, and compatibility of each option before making a decision.