The best payment services for your business - Times Money Mentor

Oct 26, 2024

|Writer

Updated October 21, 2024

From physical card machines to integrated software for your website, every business needs a payment service. We list some of the best on the market.

While cash plays an important role in many lives today, most of the UK’s transactions are now digital. According to UK Finance, a trade association, half of payments last year were made from a debit card. Cash meanwhile remained the second most popular means of payment, holding about 14% of the market share.

In comparison, a decade ago 54% of all payments were made through cash.

“Over the next decade we are forecasting further growth in the use of card and mobile payments,” said Adrian Buckle, head of research at UK Finance.

But how much a card payment solution costs you, as well as what they can offer, varies widely between services and providers.

So, with a changing payment landscape, what technology does your business need to keep running and how much will it cost to set up?

In this article we explore:

Read more: The best business bank accounts

When cash was the only means of payment, businesses needed just a register and a safe. But now there are various ways to accept and facilitate payments your customers.

If your business operates from bricks and mortar, or deals with people face-to-face, then you’ll probably need to consider a card machine. If your business operates solely online, then you’ll need to consider an integrated online payment solution.

Exactly which one you’ll need, or which combination of them, depends on who your customers are and how much and how often you’re taking payments.

We’ve built a business savings account that helps you grow your capital and be prepared for the future – with the flexibility to access your funds whenever you need them.

Learn more and apply

If you own a card machine you could switch to a new provider at a cheaper price. This works in much the same way as changing your broadband, where you may need to pay an exit fee if you’re in the middle of a contract.

While it can seem a hassle to switch, savings money on a new card reader is one way you can cut down on your expenses and save you money.

As for online services which are integrated into your website, you may wish to switch provider for a number of reasons. This could be to poor connection, to cut costs, or to create a better user experience.

You’ll also need to make sure you’re not in the middle of a contract with your current provider. If this is the case then you may be subject to an exit charge.

Of course, this isn’t the same as switching a physical card reader. Changing software solutions will require some technical expertise which your new provider should help you with completing.

Read more: Does your business need expense management software?

For the latest money tips, tricks and deals, sign up to our weekly newsletter today

Your information will be used in accordance with our Privacy Policy.

You’re now subscribed to our newsletter, you’ll receive the first one within the next week.

Card machines are devices you can use to recieve debit or credit card payments. As you’ll notice, they come in different forms and costs.

A nationwide chain, for example, might have a bulky card reader attached to a till while a market stall might decide to use a slimmer, portable reader at their point of sale.

These devices can by linked to your internet Wi-Fi, connect to mobile networks themselves or connect to your phone via Bluetooth connection to send transactions through.

The payment machine generally subtracts a small percentage of each sale, to cover the cost of fulfilling the transaction. You can get them as “pay-as-you-go” devices, or sign up to a monthly contract for lower fees. There can also be a cost for the machine itself, although this is often subsidised.

The right card machine will depend on your business, so below we’ve listed some machines worth considering

We want to know more about you and your business, complete this survey to enter a draw to win one of two Amazon vouchers.

Start Survey

Different card machine providers structure their policies differently. But you can expect to be charged the following:

Card machines vary in price and capabilities. A simple card reader might suffice for a sole trader operating a single market stall, while a growing business with branches around the country might need a more nuanced system.

Read more: The best business credit cards

Once you’ve identified which card machine would be best for your business, you’ll need to get in contact with your merchant to arrange the purchase. Many of these machines can be bought online through your merchant directly, or on popular ecommerce sites such as Amazon.

Some providers will require you to open one of its business accounts before you take out one of their card readers, so make sure to look at the terms and conditions carefully.

Meanwhile, other providers will need more information about your business to see if this is the best card reader for you. Barclaycard, for example, requires you to disclose if you’ll take more than £200,000 a year through card payments and if you need more than one reader.

If it thinks this reader is suited for you, it’ll require:

Read more: Commercial mortgages explained

If your business is purely online, then chances are you won’t need a card reader to take payments. Instead you’ll need an integrated software system that you can fit into your website.

If this is the system you’re looking for, you’ll need a service that offers a payment gateway and processor. The gateway is a secure web wage where your customers can input their payment details, whereas the processor verifies the transaction by using these details to contact the customer’s current account provider.

There are several providers who offer payment software packages that you can use to integrate into your website. So below we’ve listed some providers worth considering:

Before partnering up with a payment services provider, consider the size and expected growth of your business.

If you’re imminently expecting to expand into Europe, then it is perhaps best to consider what charges your providers will make on EU cards too. Meanwhile, if you have a modest customer base then you probably won’t need some of the customer report integration tools on offer from some services.

Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.

A good CRM platform should make your business’s interactions easier with your clients. We explain how CRM systems work, and the best options on the market. As your business grows, it’ll naturally take on more clients. At this stage, it’s important to build and maintain good relationships with new and existing customers. One way to […]

Grant Harrington turned his butter business dreams into reality thanks to his saving skills and a loan from his parents. Grant was 21 when he became obsessed with butter while working at a restaurant in Sweden. “The butter there was so much better than any I’d tasted in England,” he says. “I knew I wanted […]

Advertising executive Dan Zell loved dreaming up business ideas with friends in the pub. “I was always mentally packing my bags for Silicon Valley,” he says. Then Dan, 33, hit on the idea that people might sign up to an annual subscription for well-made, affordable socks. “I had noticed socks were a valuable piece of […]