If you search card merchant service provider on Google you will find tons of articles with a wide range of claims on what’s best for customers “ who need immediate access to funds” or “ best for brand reputation”. Let us make the decision easier for you, for 60% of SMEs in the UK, all you need to worry about is 2 things: the price you will pay for the card machine and transaction cost, and if you’re willing to be tied into a contract.
For the other 40%, you may need a card payment solution that’s a little more bespoke, if you need payment options for the occasion sale or need something that will integrate into your e-commerce website you might need a payment provider more suited to your needs. In this article, we review multiple providers so you can better understand which merchant service is best suited for you.
Merchant account service providers are a bit like choosing an electricity provider, the quality of electricity provided is hardly going to change if you switch providers, the main reason people switch is due to cost.
The rest of this article will take an in-depth look at all the factors involved in selecting a merchant service account, but if you want to skip all the reading below and simply want to find the cheapest one, just see which of the statements below fits you best and follow the link(s) below.
What of the following applies statements best reflects what you’re looking for?
1) I want the cheapest merchant service provider and I don’t mind being in a contract for a short time.
– Who does this statement typically apply to?
– Any business turning over 3k a month or more.
– Use our comprehensive search engine and get prices costs on screen here
2) I don’t want to be tied down to a contract.
– Who does this statement typically apply too?
– Startup businesses, retailer with low or irregular income and those that just don’t want to be tied down!
Compare all PAYG merchant account providers here
What is a merchant service provider?
A merchant service provider is a bank specialising in card processing that provides businesses with the capability to facilitate electronic payment transactions.
They enable businesses to accept various forms of payment such as credit cards, debit cards, and mobile payments, from their customers.
Merchant service providers act as intermediaries between the business, the customer, and the payment networks, ensuring secure and efficient payment processing.
Some merchant services buy rates from the bank directly but do not actually provide the card processing service. Although these companies are intermediaries they often have cheaper rates than the bank directly, a little bit like the car insurance sector.
What other factors matter when choosing the best merchant service provider?
There are several other things to consider other than price when choosing a merchant account, although this isn’t an exhaustive list here are the elements, we think matter most after cost:
- Would you prefer a compact card reader that effortlessly fits into your handbag and requires no charging throughout the day?
- Are you seamless integrations and robust reporting? Whether you want your accounting software to seamlessly plug into your merchant account or desire a wealth of data, we’ve got you covered.
- Considering an online merchant account? While most merchant services provide an online payments gateway, the quality may vary. Are some options superior to others?
- Prioritise reputation and brand trustworthiness? We understand the importance of a reliable logo on your machine
- Value exceptional customer service? If you’ve had a challenging experience in the past and want to avoid a repeat, we’re here to ensure your satisfaction.
Here’s a snapshot of our best merchant service providers for small and large business:
How much do merchant accounts and payments processing companies charge?
Payment processing companies can charge a variety of fees to merchants, and the charges will be mainly dependent on your turnover, the type of card machine you require and if you need online services.
Here is a list of common fees payment processing fees charged my merchant service providers in the UK:
As the UK’s leading price comparison site for payment processing our most important review metric is price, regardless of how you wish to take payments: instore, online or over the phone Clover provides exceptional value. Transactions fees are typically low, with debit card processing rates starting from 0.35%. Although a min 6-month contract is typically required and Clover might not be best option for startups or businesses with a turnover under £3000, for everyone else Clover is a solid choice.
Service levels are also outstanding, our own platform data suggests over 96% of customers have remained with Clover 12 months after signing up with them, suggesting real brand loyalty.
Although the online payment gateway is not as easy to integrate or familiar for developers as Stripe, transaction costs mirror instore fees which would mean substantially lower costs (stripe charge 1.5% -2.5% per card transaction). The customer journey isn’t quite as slick as Stripe’s, but we would still rate clover’s offering a solid 4/5*
Clover’s card machine offering is also impressive, unlike many of the outdate designs provided by the likes of Worldpay, all Clover card terminals are touchscreen designs, easy to use and equally easy on the eye
