Finances

Payment systems for small business: 6 best reviewed

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This guide outlines the 6 best small business payment systems — and the benefits of each.

Creating and growing a small business is always challenging, but it can feel especially so in recent years. Although there are too many reasons for that than we can explore in a single article, there is one that can seem almost paradoxical: the overabundance of different management and finance tools and systems.

Payment systems are a great example of that. Finding the right payment system for your business can be a great boon, but picking the wrong one can be equally detrimental. There are many variations in the transaction fees, monthly fees, type of checkout integration, security features, and other specifics of each payment solution.

What’s more, all these specifics can change rather quickly. For all these reasons, picking the right tool for your business is a tricky but worthwhile, endeavour. To help you out, we researched the six best payment solutions for small businesses in the UK.

What makes payment systems great for small business?

At first glance, many of the benefits a small business would need from a payment solution are the same for big businesses – security, speed, convenience, and low fees. There are some things to note, however. The first is the difference between monthly fees and transaction fees.

Some payment systems include only one or the other, while others have both. More crucially – the exact percentage or fixed amount of these fees can vary drastically between payment solutions.

This variation can be crucial for a small business, as a steep transaction fee can eat away at your profits quickly if your clientele makes numerous small transactions. On the other hand, a fixed monthly fee can be frustrating during slower months or if your business has to go on hiatus seasonally.

Some payment systems even offer a number of free transactions, either monthly or in general. This sort of thing can be excellent for a small business that makes a few sizable transactions a month, but it is inconsequential for a larger company.

Security is another thing that is important in general, but especially so for a small business. That’s because larger enterprises usually have numerous additional security protocols to keep them safe, while small businesses often just have to rely on whatever security features their payment solution of choice has.

Another significant payment systems factor small businesses should consider is flexibility. Many payment processors are pretty rigid with the plans they offer, while others allow business owners to easily switch things up.

Then, there are some “small font” details that often frustrate business owners, such as overly harsh early cancellation fees. That is the sort of thing a big business can shrug off, but a small business can really suffer from.

6 best payment systems for small business

1 – Stripe

If your business is looking to make worldwide sales regularly, Stripe is one of your best choices. It supports over 135 currencies, allows dropshipping businesses to facilitate direct payments between customers and third-party companies, and offers customised hosted payment pages.

Stripes, however, has a 2% currency conversion fee on top of the standard transaction fee, which is something to keep in mind.

2 – Worldpay

Worldpay is considered one of the best payment systems for small businesses worldwide, including in the UK. This processing company has a vast assortment of flexible plans, ideal for new and small businesses. Worldpay also has extensive security features and offers a wide range of processing options, such as POS systems, EMV terminals, mobile and digital wallets, FastAccess funding, and more.

However, there is a higher-than-average transaction fee on the pay-as-you-go option.

3 – PayPal

People who look for convenience and speed often go to PayPal, and for good reason. PayPal’s Payflow Gateway has over 220 million users worldwide, and its transaction fees vary but are generally on the lower side, making it great for small businesses.

Selling abroad charges more, however, and PayPal does not refund transaction fees in case of purchase returns. In addition, the system requires approval and often excludes businesses from certain niches, such as gambling, prescription drugs, and broadcasting.

4 – Paysafe

When comparing Paysafe vs other payment methods, one of the main differences that pops up is Paysafe’s freedom of use. For example, if PayPal’s gambling restriction is an issue for you, it will not be a problem with Paysafe.

Another thing to note is Paysafe’s excellent security features, such as electronic check processing and ACH payments, which are great for small businesses and customers alike. Paysafe also has numerous gift and loyalty card options, which are also beneficial for smaller businesses.

5 – Opayo

Formerly known as Sage Pay, Opayo is likely one of the payment solutions most suitable for small businesses in the UK right now. It has both a monthly fee of £32 and transaction fees, but the fees start at just 0.9%. What’s more, Opayo offers 350 to 500 free transactions, depending on the plan you choose.

Opayo also has the Sage accounting software, which makes it easy for small businesses to view and measure their financial incomings. Opayo also has a PCI compliance rating of 1 – signifying its excellent security features.

6 – Cardstream

Brand awareness is essential for any small business, and Cardstream is quite helpful in that regard due to its customisable payment systems option.

In essence, this is a “white-label” payment solution known for its fantastic customer service. What’s more, Cardstream’s plans also don’t have the steep early cancellation fees of many of its competitors.

Final words

Obviously, there is no “one size fits all” solution, as every small business will have different payment systems needs and preferences. That is part of why this choice is often so challenging, but it is also what makes finding the right payment solution so rewarding.

The six tools above are definitely some of the best payment solutions for small businesses in the UK right now, and most will likely stay near that way for quite some time going forward.

Photo by crazy motions

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