Best Payment Gateways in the UK 2023
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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?

 

What is payment gateway

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? 

 

how does payment gateway works

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 FeeRecurring Fee per MonthTransaction FeeMerchant Discount RateSettlement Period
Varies
From £20 per month plus VAT
From 1.6%Varies2 – 4 Business Days

 

ProsCons
Advanced security measures to protect sensitive financial informationCharges fees for its payment processing services
Ability to customize the checkout process to match their brand and create a seamless customer experienceSome 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 FeeRecurring Fee per MonthTransaction FeeMerchant Discount RateSettlement Period
£175£15From 1.4%Varies3 – 4 Business Days

 

ProsCons
Provides a range of reporting and management tools, making it easier for businesses to track and manage their payments and financial dataOnly available in the United Kingdom, which may limit its usefulness for businesses with customers in other countries
Supports a range of payment methodsSetting 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 FeeRecurring Fee per MonthTransaction FeeMerchant Discount RateSettlement Period
£250
Varies
From 1.6%
2.5%3 – 5 Business Days

 

ProsCons
Wide range of payment methods to suit everyoneSome users have reported that customer support is limited or difficult to access
Advanced security measuresThe slow response by the bank
Integration with HSBC banking services,24/7 UK-based supportMay 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 FeeRecurring Fee per MonthTransaction FeeMerchant Discount RateSettlement Period
Varies
£19.95
£0.70 per £100
2.5%3 – Business Days

 

Pros Cons
No monthly fee – only charged for the transactionsSetting up RBS WorldPay may be more complex than other payment gateway options in the UK
24/7 staff supportOnly available in the United Kingdom
Offers a range of customization options

 

Get Updated on the lastest payment gateways pros & cons

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.

 

FunctionFocus Area
To send and receive payments through a variety of methods
To provide a platform for online payments, with a strong emphasis on global reach and multi-currency support.

 

ProsCons
Widely recognized and trusted by consumersSome customers have reported difficulties with customer service and technical support.
Easy to set up and use, with no setup feesIt 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 transfersas 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

 

need help with payment gateway

 

  • 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.

FunctionFocus Area
To provide businesses with an easy-to-use, secure, and reliable payment processing platform

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Streamline the process of accepting payments

 

ProsCons
User-friendly and easy to set up, making it a great option for businesses of all sizesWhile 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 optionsSlow 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.

FunctionFocus Area
To provide a simple and reliable solution for businesses 
To simplify the process of collecting recurring payments

 

ProsCons
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 paymentsSetting 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.

FunctionFocus Area
To provide a secure link between a merchant’s website and the bank
Efficient payment processing services

 

ProsCons
Supports a wide range of payment methods, making it easier for businesses to accept payments from their customersSome 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 detectionSetting 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 transactionsSome 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 GatewayProsConsTransaction FeeSetup Cost
PayPal
User-friendly
High transaction fees
2.9% + £0.30
£0
Stripe
Simple and easy-to-use platform
May require coding knowledge for customizations
1.4% + 20p
£0
Worldpay
Large range of payment options
Lengthy setup process
2.75% + 20p
Contact for pricing
Sage Pay
Customizable options
Limited mobile integration
£20 per month + transaction fees
£0
Amazon Pay
Trusted brand recognition
Limited currency options
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!

 

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Frequently Asked Questions

 

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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.

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.

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.

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.

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.

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.

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.

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.



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