12 Mar Best Payment Gateways in the UK 2023
Payment gateways play a crucial role in eCommerce by providing businesses a safe and streamlined way to process online payments. Numerous payment gateways are available in the UK, offering various payment processing solutions for businesses of all sizes. These gateways ensure secure and dependable payment processing, accommodating various payment options like credit and debit cards, bank transfers, mobile payments, and digital wallets. UK-based payment gateways are equipped to cater to the evolving needs of eCommerce, enabling businesses to accept payments from customers anytime, anywhere. Whether you are a small startup or a large corporation, a payment gateway in the UK can accommodate your needs.
Payment Gateway – What Is It?
The payment gateway acts as the intermediary in eCommerce, assisting in the secure completion of online transactions between merchants and customers. Unlike secret agents, payment gateways do not face danger but prioritize protecting financial information. Payment gateways in the UK provide diverse digital payment options, including online shopping, bill payments, and fund transfers. With an increasing number of payment gateways available, consumers in the UK have the advantage of various choices for secure online transactions.
Payment Gateway: How Does It Work?
Picture this: you’ve just finished a delicious meal at an upscale restaurant. It’s time to settle the bill, and instead of pulling out your physical wallet, you use your phone to make the payment. How did that happen? Here the payment gateways enter. Payment gateways serve as intermediaries in eCommerce transactions, ensuring the secure and efficient transfer of funds from the customer to the merchant. When you purchase on a website, you input your payment information which is then securely transmitted to the payment gateway. The payment gateway processes the transaction, seeks authorization from the relevant financial institution, and notifies the merchant upon successful completion.
Best Payment Gateways in the UK – Banks
Third-party payment gateways were not a notion when credit and debit cards were initially launched. Banks carried out the honors. Since they were proficient at managing transactions, they became payment gateways by locating the point of sales and utilizing IT infrastructure.
So, let’s start with the banks providing online payment gateways in the country.
- Barclays ePDQ
Barclays ePDQ is a payment gateway in the UK offered by Barclays. It provides businesses a secure and efficient way to process online customer payments. It is a trusted payment gateway in the UK and is used by many businesses to process online customer payments.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | |
|---|---|---|---|---|---|
| Varies |
|
From 1.6% | Varies | 2 – 4 Business Days |
| Pros | Cons |
| Advanced security measures to protect sensitive financial information | Charges fees for its payment processing services |
| Ability to customize the checkout process to match their brand and create a seamless customer experience | Some businesses have reported issues with the level of technical support provided by Barclays ePDQ |
| Provides businesses with a range of integration options |
- Lloyds Cardnet
Lloyds Cardnet is a payment gateway offered by Lloyds Bank in the United Kingdom. It provides businesses a secure and efficient way to process online customer payments. Lloyds Cardnet supports a range of payment methods, including credit cards, debit cards, and bank transfers, making it easy for businesses to accept payments from their customers.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period |
|---|---|---|---|---|
| £175 | £15 | From 1.4% | Varies | 3 – 4 Business Days |
| Pros | Cons |
| Provides a range of reporting and management tools, making it easier for businesses to track and manage their payments and financial data | Only available in the United Kingdom, which may limit its usefulness for businesses with customers in other countries |
| Supports a range of payment methods | Setting up Lloyds Cardnet may be more complex than other payment gateway options. |
| Advanced security measures, including encryption and fraud detection, help to protect sensitive financial information during the payment process. |
- HSBC Secure ePayments
HSBC is one of the payment gateways in the UK offered by HSBC Bank. It uses advanced security measures and provides businesses with various customization options, making it easy to integrate with their existing systems and processes.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | ||
|---|---|---|---|---|---|---|
|
Varies |
|
2.5% | 3 – 5 Business Days |
| Pros | Cons |
| Wide range of payment methods to suit everyone | Some users have reported that customer support is limited or difficult to access |
| Advanced security measures | The slow response by the bank |
| Integration with HSBC banking services,24/7 UK-based support | May charge fees for its payment processing services, such as transaction fees and monthly fees |
- Royal Bank of Scotland (RBS) WorldPay
The Royal Bank of Scotland (RBS) is a large banking and financial services company headquartered in Edinburgh, Scotland. RBS WorldPay is a payment gateway in the UK that provides secure and reliable payment processing services for UK businesses, supporting a range of payment methods, including credit and debit cards, direct debits, and mobile payments.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | ||
|---|---|---|---|---|---|---|
| Varies |
|
|
2.5% | 3 – Business Days |
| Pros | Cons |
| No monthly fee – only charged for the transactions | Setting up RBS WorldPay may be more complex than other payment gateway options in the UK |
| 24/7 staff support | Only available in the United Kingdom |
| Offers a range of customization options |
Best Payment Gateways in the UK – Fin-Tech Companies
Fin-tech companies, or financial technology companies, are businesses that use technology to improve and automate financial services. Fin-tech companies that offer payment gateway in the UK play a vital role in the digital economy, facilitating transactions and helping businesses to thrive in the digital age. Let’s now watch some modern-day fin-tech companies built to make transactions easy.
- PayPal
PayPal is one of the most widely used payment gateways in the world, including the UK, offering businesses a fast and secure way to accept payments from customers.PayPal provides businesses with a secure and convenient way to process payments, as it uses advanced security measures to protect the sensitive information of both buyers and sellers. Additionally, PayPal offers robust fraud protection, helping businesses to avoid chargebacks and disputes.
| Function | Focus Area | ||
|---|---|---|---|
|
|
| Pros | Cons |
| Widely recognized and trusted by consumers | Some customers have reported difficulties with customer service and technical support. |
| Easy to set up and use, with no setup fees | It may not be ideal for businesses in certain industries, such as adult entertainment or firearms sales, |
| Supports a variety of payment methods, including credit and debit cards, PayPal balance, and bank transfers | as PayPal has strict policies on the types of products and services that can be sold through its platform |
| Offers a range of security features, such as fraud protection and secure payment processing |
- Stripe
Stripe is a cloud-based payment gateway in the UK that provides businesses a simple way to accept payments online. It supports various payment methods, including credit cards, Apple Pay, and Google Pay. It supports more than 135 currencies and dozens of payment methods. Furthermore, providing you know how to use them, its powerful development tools enable you to build a checkout flow that feels unique.
| Function | Focus Area | |
|---|---|---|
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|
| Pros | Cons |
| User-friendly and easy to set up, making it a great option for businesses of all sizes | While Stripe’s fees are transparent, they can be higher compared to other payment gateways in the UK. |
| It uses advanced security measures to protect the sensitive information of both buyers and sellers, and it offers robust fraud protection. | Some businesses may experience technical issues when using Stripe |
| Offers a range of customization options | Slow loading times or limited integration options |
| Businesses can tailor their checkout process to meet their specific needs |
- GoCardless
GoCardless is one of the top payment gateways in the UK that allows businesses to collect recurring payments from their customers easily. It specializes in Direct Debit, a cost-effective and efficient way for businesses to receive recurring customer payments. The payment gateway and Direct Debit management service enable businesses to accept payments directly from their customer’s bank accounts.
| Function | Focus Area | ||
|---|---|---|---|
|
|
| Pros | Cons |
| Businesses can automate their payment collection process, | Direct Debit payments can take longer to process than other payment methods, which can be an issue for some businesses |
| Saving time and reducing the risk of late or missed payments | Setting up a Direct Debit system can be complex and time-consuming, especially for businesses new to the process |
| It operates globally, which makes it easy for businesses to accept payments from customers around the world |
- SagePay
This is a payment gateway in the UK provided by the financial software company Sage, offering businesses a range of payment processing services, including online payments, phone payments, and card payments.It is a solid choice for businesses looking for a reliable payment gateway that integrates with a wide range of platforms and provides a range of security features.
| Function | Focus Area | ||
|---|---|---|---|
|
|
| Pros | Cons |
| Supports a wide range of payment methods, making it easier for businesses to accept payments from their customers | Some customers have reported difficulties with customer service and technical support. |
| Robust security measures in place to protect both businesses and their customers, including encryption and fraud detection | Setting up a Sage Pay account can be complex and time-consuming, especially for businesses new to online payments. |
| User-friendly interface that makes it easy for businesses to manage their payments and transactions | Some users have reported limited support from Sage Pay, which can be an issue if businesses have questions or problems with their accounts. |
Here’s a little summary of some of the top payment gateways in the UK for 2023:
| Payment Gateway | Pros | Cons | Transaction Fee | Setup Cost | ||||
|---|---|---|---|---|---|---|---|---|
| PayPal |
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| Stripe |
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| Worldpay |
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£0 | ||||
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2.7% + £0.30 | £0 |
Also Read: Best Payment Gateways in the US 2023
Wrapping Up
In conclusion, payment gateways are vital for eCommerce businesses as they provide a secure and efficient means of accepting online payments from customers. Given the many options available, selecting the right payment gateway in the UK can be challenging. However, making the right choice is crucial as all your business transactions will be processed through it. This guide provides an overview of some of the most popular payment gateways in the UK, catering to the needs of eCommerce businesses, experienced online shoppers, and even those new to the online world. Don’t hesitate to contact us to determine which payment gateway best suits your business requirements!
Frequently Asked Questions
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What is a payment gateway?
A payment gateway is a technology that enables online merchants to securely and efficiently process electronic payments, such as credit card transactions, through their website or mobile app.
How does a payment gateway work?
When a customer submits their payment information on an online store, the payment gateway encrypts the information and sends it to the payment processor for authorization. The processor then communicates with the customer’s bank to verify the transaction and send the funds to the merchant’s account.
How do I choose the right payment gateway for my business?
When choosing a payment gateway, consider factors such as transaction fees, security features, ease of use, integration options, and customer support. Selecting a payment gateway that supports the payment methods your customers prefer is also essential.
Are there any transaction fees associated with payment gateways?
Yes, most payment gateways charge a per-transaction fee in addition to a percentage of the transaction amount. Fees can vary depending on the payment gateway and the type of transaction.
What security measures do payment gateways have in place to protect sensitive data?
Payment gateways use a variety of security measures, such as encryption, tokenization, and fraud detection tools, to protect sensitive data from unauthorized access or theft.
Can payment gateways be integrated with my existing website or eCommerce platform?
Yes, most payment gateways offer integration options with popular eCommerce platforms and website builders. It’s essential to check the compatibility of the payment gateway with your existing setup before choosing a provider.
What happens if a customer disputes a charge?
If a customer disputes a charge, the payment gateway provider will work with the merchant and the customer’s bank to investigate the issue and resolve the dispute. The merchant may be required to provide evidence of the transaction to support their case.
Do I need a merchant account to use a payment gateway?
Yes, most payment gateway providers require you to have a merchant account to process transactions. However, some providers, such as PayPal, offer integrated merchant accounts as part of their service.