Who Offers the Best Startup Merchant Account in the UK? 

Thursday, June 18th, 2020

Nothing is as inspiring as the thought of starting your own business. For many, it is the ultimate definition of success.
But lucrative as it may sound, many entrepreneurs hardly ever go beyond ideas. Many times, small business owners have to set straight a lot of things before they can finally turn into a fully functional enterprise.
Part of the due diligence is to open a merchant account for your payment needs. And acquiring one is not an easy feat, especially for a business without financial records. The truth is, most banks and other old-school merchant account services won’t accept your business.
Or still, they will onboard you under a high-risk classification and subject you to exorbitant fees throughout the first and second years of business.
But that’s okay because traditional service providers aren’t your only option to a friendly startup merchant account. There are more than a dozen other services providers. But again, not all of them will fit your needs.
Here are four facts to get you started;
• Merchant accounts for startups begin from 1.4 percent + 20p
• Per-month fees may range from £0-£10
• Payment Processing lasts 0-7 days
And lastly, 4) third party processors such as PayPal may be the best option for a new business.
The 4 Best Merchant Services UK

PayPal
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.
It has a secure gateway (that guarantees 0-3 days settlement) and a PayPal Here Card Machine that allows a newbie to open a business and begin taking both in-person and online payments in a matter of days. Also, no credit pull or tiresome business reviews here.
Apart from quick instant settlement, it offers fair pricing of 1.9% plus 20p per transaction, but only for businesses that have attained the £55, 000 target revenue. Rates can go as high as 3.4 % plus 20p for sales as low £1, 500.
The terminals go for £15-£75 and include a monthly charge of £20.

Square
Square is one of the UK’s longest-serving microbusiness-focused merchant account providers.
Square transaction fees are as follows; (1) 2.5% for online and manually keyed transactions, and (2) 1.75% for contactless and chip sales. The card terminal costs £59.
And with no other hidden fees, Square is an excellent pick for a UK startup.

Stripe
Stripe offers rates as low as 1.4% plus 2p, which makes it popular, and one of the cheapest web payment gateways in the UK.
Still, it isn’t the right pick for retailers who prioritize in-person payments as it lacks a card terminal.
On top of merchant account services, Stripe also offers (1) free-of-charge online reporting, (1) accepts SEPA Direct Debit and other European payment avenues, and (3) hassle-free integration into multiple web shopping carts.
IZettle

IZettle is the ultimate merchant account and card terminal provider for in-person payments.
Unfortunately, it has no payment gateway and doesn’t support ecommerce. Still, it has a capable card terminal that goes for £59 and offers a flat-rate pricing model at 1.75% for cards. It also provides online invoicing at 2.5%.
IZettle has a free-of-charge account with no extra fees. But retailers can choose to enjoy premium services and customer service for a monthly cost of £20.
Final Words
Unlike traditional services, most new-age service providers do not insist on complicated credit pulls and business reviews. They will register you as long as you are a perfectly legal business.