Choosing the right payment provider is an important decision for an eCommerce website owner. There are lots of different payment providers that offer different services and pricing structures. The right payment provider for you will depend on many different factors including customer preferences, the type of product or service you are selling and the number of transactions you expect to be getting.
Things to consider when choosing an online payment provider
These are the main factors to consider when choosing a new payment provider for your business.
1. Payment provider fees
One of the most important factors when choosing an online payment provider will be the overall cost of using the service. Fees will vary between different providers and may include setup fees, monthly fees, fixed costs per transaction and variable fees based on a percentage of each transaction.
In addition to the fees for using the service, many payment providers will charge extra for things like international payments and chargebacks (when a customer complains about a transaction and the bank reverses the payment).
2. Length of contract
You need to be aware of the length of contract that you will be committing to, especially if your requirements are likely to change over time. Some providers will offer monthly rolling contracts while others will want you to commit to a minimum term.
3. Ease of use
Before adding a new payment service to your website you’ll want to look at how easy it is for your customers to use. You’ll want to consider how many steps it will take for the customer to complete a transaction both on a PC and mobile.
4. Recurring payments
If you’re planning to take payment for online subscriptions then you’ll need to make sure that your chosen payment provider has the ability to set up recurring payments.
5. Multiple payment options
It’s usually a good idea to offer customers more than one payment option on your website. Having multiple payment option gives your customers more choice and increases that changes that there will be a payment option that they’re comfortable with. Apple Pay, Google Pay and PayPal are popular alternatives to traditional card payments as they give the customer convenience of making payment without entering card details.
6. Reliability and support
Your payment system will be the lifeblood of your eCommerce website. Take a look at feedback from other users of the payment provider to see how often they experience technical issues, what their customer support is like and if there are any reports of users accounts being blocked unexpectedly.
Recommended Payment Providers
Below is a list of reputable payment provides that you might want to consider looking at when choosing a new payment provider for your website:
Stripe Payments – Best for startups
Stripe is one of the most innovative payment processing providers on the planet – and when it comes to power, value, and versatility, its payment gateway doesn’t disappoint.
| Stripe Fees | |||
| Transaction fee | Setup fee | Monthly fee | Free transactions? |
| 1.4-2.9% (+ 20p) | £0 | £0 | X |
| Pros | Cons |
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WorldPay – Best all-rounder
Worldpay is a colossus in the card payment industry. Trusted by more than 300,000 UK businesses, its payment gateway is one of the most dependable on the market.
| WorldPay Fees | |||
| Transaction fee | Setup fee | Monthly fee | Free transactions? |
| 0.75-2.75% | £80 (integration) | £19.95 | X |
| Pros | Cons |
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PayPal
As a well established household name, PayPal gives customers the safety of a brand they already know and trust.
| PayPal Fees | |||
| Transaction fee | Setup fee | Monthly fee | Free transactions? |
| POA | POA | POA | POA |
| Pros | Cons |
|
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Amazon Pay
Amazon Pay helps to cut out the administrative hassle for everyone involved in the transaction by reusing payment details stored in the Amazon accounts you already use.
| Amazon Pay Fees | |||
| Transaction fee | Setup fee | Monthly fee | Free transactions? |
| 1.4-3.4% (+20p) | £0 | £0 | X |
| Pros | Cons |
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Klarna – Best for buy now, pay later
Klarna is one of Europe’s biggest banks, providing payment solutions for 60 million consumers, through 70,000 merchants in 18 countries.
| Klarna Fees | |||
| Transaction fee | Setup fee | Monthly fee | Free transactions? |
| 1.4-3.4% (+20p) | £0 | £0 | X |
| Pros | Cons |
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GoCardless
GoCardless offers a simple way to accept direct debit payments. The company processes £2.9 billion worth of transactions each year.
| GoCardless Fees | |||
| Transaction fee | Setup fee | Monthly fee | Free transactions? |
| 1% capped at £2 | £80 (integration) | £0 standard plan £50/month plus plan £200/month pro plan |
X |
| Pros | Cons |
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