Comparing the Best Merchant Service Providers for UK Businesses

Thursday, June 18th, 2020

It’s only natural to want to compare merchant services before choosing a partner whom you’ll work with moving forward.

The best merchant account companies provide excellent service, impenetrable security against credit card fraud, hassle-free integration with third-party accounts at affordable costs.

In light of that, we present the best merchant account services for small companies in the United Kingdom.

PayPal merchant services

PayPal has a reputation, not only in the UK but around the globe, which makes it an excellent choice if you want a payment method your customers are familiar with.

Apart from quick instant settlement, it offers fair pricing of 1.9% plus 20p per transaction

But like any other service, PayPal has its advantages and downsides.

Advantages

• A famous payment gateway
• Processes international transactions
• They offer a comprehensive PayPal Here Card Machine
• Links easily with third-parties such as BigCommerce and Shopify

Downsides

Unfortunately, PayPal’s transaction fees are higher compared to some industry players.

Worldpay merchant services

Worldpay initiates nearly half— 42 percent— of all UK card transactions, making it the most popular merchant service company.

Its services are tailored for business needs, and rates are as fair as they can get.

• 1 percent for credit cards,
• 2 percent for debit cards plus 4p authorization fee

Still, in the eyes of a business owner, it has both its advantages and disadvantages.

Advantages

• It offers flexible pricing models for microbusinesses, even the rare ‘pay-as-you-go’ option.
• Worldpay offers comprehensive merchant services. You enjoy both online payment, card terminals and a till hardware.
• Round-the-clock merchant support

Downsides

• £15 monthly minimum
• 18-month contracts

Barclaycard merchant services

Barclays merchant services enable businesses to take both mobile, in-person, and online card payments.

Transactions fees stand at 0.85% plus 3p, which makes it a relatively affordable service.

Still, it has its positives and negative aspects.

Advantages

• It offers a Mobile Barclaycard Anywhere Card Machine that integrates with your account
• The service also supports multiple payment avenues

Downsides

• Barclaycard Bank transaction fees are relatively higher
• Merchants must pay an extra £2.40 for Data security costs plus Value-Added tax every month

Elavon Merchant Services

Elavon has been assisting microbusiness for two decades now and boasts comprehensive high-end analytics that businesses rely on to gather useful insights.

Transaction fees for Elavon are 2.65% plus 15p, and here are some pros and cons;

Advantages

• Elavon offers next-day settlements
• Elavon Card terminals take Apple Pay and Google Pay
• It has a convenient reporting software

Cons

• Transfer fees are a bit higher.

But these are only a handful of the best merchant services in the UK; other popular names include Retail Merchant Services, PaymentSense, First Data, Payzone, Stripe, Shopify and Amazon Pay.

Parting Shot

Merchants should consider these three factors when choosing a service provider; (1) merchant account type, (2) Merchant account fees, and (3) extra services.