Best merchant service providers and credit card processing companies

Our testing revealed takepayments as the top merchant service provider for your small business. It excels by providing extensive data reporting, a bespoke quote based fee structure and a top-class card reader that came first in our roundup of the best card machines for small businesses.

If your growing business needs to take card payments, finding the right merchant service provider is essential. The findings from our indepth research will showcase the top five options so that you decide which best supports your individual business needs.

Here’s our roundup of the best merchant services and credit card processing companies:

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FEATURED PROVIDER	BEST OVERALL
Provider Square	Provider takepayments	Provider Clover	Provider Barclaycard	Provider Square	Provider Worldpay
Best for Mobile businesses	Best for If you need flexible payment solutions	Best for An all-in-one solution	Best for If you want to avoid hefty upfront costs	Best for Mobile businesses	Best for High volume businesses
Overall score 4.7	Overall score 4.8	Overall score 4.8	Overall score 4.7	Overall score 4.7	Overall score 4.7
Transaction fees from 1.75%	Transaction fees from Quote-based	Transaction fees from 0.2%	Transaction fees from 1.6%	Transaction fees from 1.75%	Transaction fees from 0.75%
Monthly costs None	Monthly costs Quote-based	Monthly costs None	Monthly costs £15 + VAT	Monthly costs None	Monthly costs £40
Contract length None	Contract length One month minimum	Contract length None	Contract length None	Contract length None	Contract length 18-month minimum
Payout time One business day	Payout time Next business day	Payout time One business day (with Clover’s “faster funding”)	Payout time One to two business days	Payout time One business day	Payout time One business day

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1. takepayments: best if you need flexible payment solutions

Start taking card payments with the takepaymentsplus card machine. Source: Startups.co.uk

How much does it cost?

takepayments stands out amongst its competitors because it doesn’t charge standard processing fees. Instead, it provides bespoke transaction fees to clients depending on turnover and business needs. Rather than being locked into one fee, your business will be able to grow and adapt with takepayments’ customised pricing structure.

Unlike its competitors Clover and Square, takepayments does charge a monthly fee for using its platform. You’ll have to contact takepayments directly to get understanding of what the cost will be, but it could be worth shelling out for if you’re able to agree on a low rate for your transaction fees.

takepayments also offers its card machines on a monthly lease basis, which is good news if you’re trying to avoid upfront costs, but bad news if you want to own your card machines and avoid ongoing fees. If you’d prefer to buy outright, you could take a look at Clover instead.

• Contract: Yes
• Contract length: One month minimum
• Processing fee: Quote based
• Setup fee: None
• POS hardware costs: Quote based monthly prices, terminal rental rates start from £7.50 per month
• Free trial or plan: None

Why is takepayments a top choice for my business?

takepayments provides everything you need for an all-in-one POS ecosystem, without the need for additional third party software or hardware. Its handheld card machines come fully integrated with POS software, meaning you can take payments, manage your sales, and get extensive reporting data all from a single card reader. This keeps your costs low and your operation lean.

From pricing, to its card machines and help and support options, we were impressed to find takepayments performed strongly on almost every level. Another positive; superfast next-working-day payouts! Most merchant services offer payout times of up to three working days, so this is a welcome feature.

takepayments’ bespoke transaction fee pricing structure – in conjunction with its top-class hardware design, fully fledged POS system, and strong help and support options – crowns it the top choice for almost any small business looking for a merchant service.

What help and support does takepayments offer?

takepayments provides an impressive range of help and support options, including via phone, email, live chat and even a knowledge centre. We would have liked to have seen a forum included though, and unfortunately its support doesn’t operate 24/7. Take a look at Worldpay or Barclaycard for all-hours assistance.

What our researchers think

The standout feature of takepayments for me is that everything is bespoke and fitted to you and your companies needs. They don’t offer a one size fits all package and this is going to give your business the best chance of growing organically and know that you’re never paying more than you should for transaction fees.

Ollie Simpson Senior Research Executive

2. Clover: best for an all-in-one solution

In our testing we found the Clover Flex to be a sleek and modern card reader. Source: Startups.co.uk

How much does it cost?

While Clover’s cheapest transaction fee of 0.2% might seem pretty miniscule – it’s by far the lowest on this list, even cheaper than Worldpay’s 0.75% – you need to read the fineprint! Clover’s fees are dependent on your business size and specific needs and aren’t guaranteed. Always read terms of your merchant agreement thoroughly and with care before signing, and keep an eye out for any hidden costs.

Something else to be aware of is that any sale made by Mastercard Business Debit card will be subject to a significantly higher 2.25% transaction fee. If a large number of your clientele are users, this will impact your profits.

Something to keep in mind though: the hardware is expensive. Clover’s card machine, the Clover Flex, costs an eye-watering £450 upfront. This is on the upper end of card reader pricing, so to avoid steep upfront costs you may need to take your business elsewhere. Although it’s worth knowing, Clover is currently offering a card reader for just £1 per month for the first six months (terms and conditions apply).

• Contract: None
• Highest processing fee: 2.25% for Mastercard Business Debit cards
• Lowest processing fee: 0.2% for most card payment methods (including Mastercard and Visa)
• Setup fee: None
• Monthly fee: None
• POS hardware costs: £450 for the Clover Flex
• Free trial or plan: Free plan

Why is Clover a top choice for my business?

We rated Clover as a top contender due to its advanced sales analytics dashboard. Fully equipped with features like a helpful inventory management system and the option to add notes to customer orders (such as a specific request), means that you can manage your entire business from one card machine. What fledgling micro-businesses – coffee stand or flower stall for example – wouldn’t value this?

If you need fast payouts, Clover’s ‘rapid deposits’ feature transfers your funds to your bank account in one business day. Keep in mind, though, that the charge for using this feature is 1.5% of the deposit amount. Otherwise, payouts can take between one and three business days.

We were also impressed by Clover’s exceptional offline functionality, which allows you to take payments without an internet connection. Other merchant services on this list also offer this, but Clover alone can take offline payments for up to seven days – a standout feature if you’re a mobile business operating in areas with poor or no signal.

What help and support does Clover offer?

We found Clover to provide solid help and support options, and we were pleased to find that the answers to our test questions were reassuringly accurate. Clover provides a perfectly adequate range of support channels, including a knowledge centre, but we found ourselves missing the addition of an online forum. It’s also worth noting that Clover doesn’t offer 24/7 support – it operates 8am til 9pm on weekdays. If you want the safety net of round the clock support, you’ll need to jump over to Barclaycard or Worldpay instead.

What our researchers think

I loved the clover platform thanks to its huge app store that allowed me to connect with tonnes of apps, and the ease at which you can link multiple selling platforms. They have a great in-person choice as well as excellent ecommerce options that can link to sites like Shopify and WooCommerce.

Ollie Simpson Senior Research Executive

3. Barclaycard: best if you want to avoid hefty upfront costs

Barclaycard’s small business card reader can be used across multiple devices, including mobiles and iPads, for wait staff and managers to use. Source: barclaycard.co.uk

How much does it cost?

With a very competitive 1.6% transaction fee, no initial setup fee, no need for a monthly contract, and no upfront costs for its card machines (these are leased for a monthly fee), Barclaycard makes for an incredibly attractive option from a cost saving perspective.

In addition to its 1.6% rate, Barclaycard is also able to provide bespoke quotes based on your business needs, which could help you grow and scale your operation organically as your turnover expands.

There’s only a couple of catches here that you need to be mindful of. The first is that Barclaycard charges a £15 (plus VAT) monthly fee. The other caveat is that you will need to have a Barclays bank account. Worth noting; Barclaycard offers up to a very generous £3,000 to help cover any exit fees.

• Contract: None
• Processing fee: From 1.6% (bespoke fees can be arranged, dependent on your turnover)
• Setup fee: None
• Monthly fee: £15 + VAT
• POS hardware costs: Monthly fee from £15 + VAT (or a one-off fee of £29 + VAT for the Barclaycard Smartpay Anywhere)
• Free trial or plan: None

Why is Barclaycard a top provider for my business?

Barclaycard combines its extremely competitive pricing structure with a wide range of card machines, including a portable card reader with a built-in receipt printer that can last a full day on a single charge.

Barclaycard’s Smartpay Touch card machine can act as an all-in-one POS solution, giving you the power to add products, print out sales reports and customer receipts, and access sales data all from the card machine. Barclaycard’s card machines can’t take payments offline though, so if your signal drops you’re out of luck. For a service with some excellent offline features, you’ll want to check out Clover instead.

Barclaycard also provides a reassuring 24/7 fraud monitoring services if you’re the type of merchant who’s dealing with stressful high value transactions – such as trading in luxury items like watches, jewellery or vehicles.

What help and support does Barclaycard offer?

Our testing gave us a high level of confidence in Barclaycard’s support services, not just because of its all-hours accessibility, but because of its knowledge centre and the level of accuracy we received in its responses. The only significant miss is no live chat function for getting speedy answers to any queries, which both Clover and takepayments provide, and it’s also missing any form of forum support.

What our researchers think

If you already bank with Barclays, then I’d highly recommend choosing Barclaycard for your online payment solution. I’m really impressed by their 24/7 support and fraud monitoring and the fact that they offer up to £3000 for switching platforms.

Ollie Simpson Senior Research Executive

4. Square: best for a simple and straightforward solution

When we tested the Square Terminal, the large display screen made it really easy to see our transaction total. Source: Startups.co.uk

How much does it cost?

Square offers a free plan, meaning it doesn’t charge any setup costs and, unlike with Barclaycard, takepayments and Worldpay, there are no monthly costs to pay either.

However, Square’s transaction fees are about average. They’re not remotely as competitive as Worldpay, but we’ve definitely seen worse. So, don’t dismiss the Square option if its other benefits work for your business.

• Contract: None
• Highest processing fee: 2.5% for payments manually keyed-in to the Square Point of Sale app
• Lowest processing fee: 1.75% for each contactless, chip and PIN or swiped card-present transaction
• Setup fee: None
• Monthly fee: None
• POS hardware costs: Ranging from £19 + VAT to £149 + VAT upfront
• Free trial or plan: Free plan

Why is Square a top provider for my business?

A major strength of Square is that it provides an entire payments ecosystem, with in-person POS and ecommerce all under one roof. Essentially, it’s a one stop shop, so you won’t have the headache or cost of third party software, hardware or integration. Though it won’t be the preferred option for those who want to integrate existing POS hardware or software, as the Square ecosystem doesn’t allow this.

Square can also provide merchants with fast one-business-day payouts, a feature that could be crucial for your business model. Not only that, you’ve the ability to decide when you receive your payouts with a customisable schedule.

Square’s excellent software impressed our experts, boasting advanced security features and an offline mode. Square also offers a wide range of POS hardware, with a choice of the Square Register, Square Terminal, Square Stand and Square Reader. Be aware Square doesn’t currently offer a card machine that can connect via mobile data though. So, mobile businesses that can’t rely on wifi should look to the Clover Flex instead.

What help and support does Square offer?

Our tests on the Square support system provided helpful and accurate responses, but just be aware this is only available from 9am to 5pm on weekdays, which is pretty weak compared to some of its competitors, especially a 24/7 service like Barclaycard’s.

What our researchers think

If you’re after an all-in-one solution then I’d highly recommend Square. The platform is really easy to use and we were able to create a site and get ready to take payments in under 60 minutes. Plus you can do all of this for completely free and avoid committing any major costs up-front!

Ollie Simpson Senior Research Executive

5. Worldpay: best for high volume businesses

At a Nisa Local in South London, manager Kameron Patel described his experience with the Worldpay card reader, stating that “it has never caused me any hassle, and does what it is meant to do efficiently, with no problems”.

How much does it cost?

Depending on your processing volume, Worldpay charges a rock bottom fee of 0.75% for debit cards, which is a pretty incredible rate considering the UK average across providers is 1.75%. The catch? Worldpay charges a monthly fees for the service, which come to £40, more than double Barclaycard’s £15 per month.

Unlike with the other providers on this list, you’ll have to enter into an 18-month minimum contract with Worldpay, and pay an exit fee if you choose to switch. A high volume of sales might make this worth the cheap transaction fees, but just keep it in mind before signing on the dotted line!

Worldpay does also offer a pay as you go service, but be aware that your transactions will be subject to a pretty chunky charge of 2.75% plus 20p.

• Contract: 18-month minimum
• Exit fee: Yes
• Highest processing fee: 2.75% + 20p on the pay as you go plan
• Lowest processing fee: 0.75% for Debit cards on the pay monthly plan
• Setup fee: None
• Monthly fees: £40
• POS hardware costs: Pay monthly
• Free trial or plan: None

Why is Worldpay a top provider for my business?

Worldplay is a great option if you’re a more established small business looking to get the best rates possible, and you don’t mind being tied into a longer contract. It’s best suited to infrequent but high cost transactions – for example, selling luxury items – as you’ll benefit from the minimal percentage charged per sale.

Worldpay also provides its payouts within one business day, plus the option to customise your deposit schedule. If you’re a business with a lower annual turnover though, Worldpay’s fee structure could cost you more and lock you into an extended contract. We’d recommend taking a look at a more new starter-friendly provider like Square instead.

Worldpay countertop terminals and mobile card readers suit almost any business  – they can receive a signal from ethernet, mobile data or wifi, so a good option if you feel like Square is let down by its lack of mobile data connection. If you were turned off by Square’s closed-loop POS system, then its also worth knowing that Worldpay’s range of terminals and readers are potentially compatible with other POS software.

What help and support does Worldpay offer?

Our testers were hugely impressed by Worldpay’s range of 24/7 help and support: phone, email, live chat, and a knowledge centre. The forum where we could interact with other merchants to discuss queries and pain points was a particular bonus, one overlooked by every other provider on this list except Square.

What our researchers think

I’m really impressed by Worldpay and would 100% recommend them for rapidly growing or established businesses looking to take online payments. They’re such a powerhouse in this world that they have so many great features such as pay by link which is great for on-the-go merchants as well as next day payouts and huge dashboard to closely analyse your best payment methods.

Ollie Simpson Senior Research Executive

The bottom line

If you’re looking for a merchant service provider, we feel that takepayments should be at the top of your list. It came out on top during our extensive testing process thanks to its custom, quote-based transaction fees, detailed dashboard, its all-in-one POS system and lightning fast next-working-day payouts.

There might be another provider more suited to your niche requirements though, for example Worldpay is best suited to high-volume businesses, so make sure to read through our recommendations to see what’s right for you!

Buying guide: how to choose a merchant service provider

Choosing the right merchant service provider can significantly impact your operations and bottom line. Here are the essential factors to consider:

Payment options

Consider the variety of payment methods the provider supports. Whether you take payments in person, over the phone, or online, your checkout needs to be where your customers are to ensure you’re making it as easy as possible for them to spend their money with you.

For example, if an interested buyer finds your business online but has to visit your shop to make a purchase, this might end up costing you a customer.

Transaction fees

Transaction fees can vary widely and fluctuate, so make sure you’re aware of how much you’re being charged when a customer makes a payment – it could impact your profit margin.

Look for transparent pricing models with competitive rates and keep an eye out for common hidden charges that might inflate costs over time, such as contract termination fees or penalties for having insufficient funds.

Contract lengths

Evaluate the flexibility of the provider’s contract terms. Some providers lock businesses into lengthy contracts, which could mean you’re stuck paying higher fees if you spot a rival merchant provider with a more competitive rate.

Opting for a brand that offers reasonable contract lengths with the option for shorter terms or no long-term commitment can be a good way to hedge your bets.

Accepted payment types

Ensure that the provider supports the payment methods your customers prefer. Whether it’s credit or debit cards, mobile payments, contactless, or digital wallets, a comprehensive range of accepted payment methods can broaden your customer base and increase sales opportunities.

Features

Assess the additional features offered by the provider beyond basic payment processing. There are all manner of helpful add-ons you might not be aware of that make the difference between a happy or dissatisfied customer. Look for functions such as:

• Mobile payment/contactless card acceptance
• Fast processing times
• Robust security measures
• Invoicing features
• Inventory management
• Fraud protection
• 24/7 customer support
• Educational resources
• Marketing tools

Compliance measures

Verify that the provider adheres to industry regulations and standards for data security and compliance. PCI DSS (Payment Card Industry Data Security Standard) compliance is essential.

Help and support

Look for providers with accessible customer service channels (such as email, live chat, and phone support) as well as customer forums to find out how a provider performs straight from the horse’s mouth or in an emergency such as a signal error or transaction delay.

Integrations

Keeping track of your myriad tech products is easier if your business software can integrate, sharing data between applications and creating one unified system to run things from.

How much should I pay for a merchant service?

Throughout this guide we refer to several types of fees that are charged by merchant service providers. These can vary greatly depending on factors like your business size, industry, transaction volume, and chosen provider.

However, here’s a breakdown of the most common payment processing costs incurred by UK sellers and why you must pay them:

• Transaction fees = every time a customer makes a payment to your business (whether in person or online) you will need to pay a fee to the payment processor. This is usually between 1.5% and 3.5%
• Card machine/reader fees = the cost of a card machine or reader varies, with basic readers starting at around £20 and advanced models reaching over £300. Some providers offer free readers with their plans
• Virtual terminal fees = virtual terminal fees are paid when you accept a customer’s payments through a virtual terminal (over the phone, or via email or online form). They are typically a percentage, and range from 2% to 4% per transaction
• Payment gateway fees = paid when your customers buy something online, this fee covers the cost of the gateway’s technology and services. It is usually around 0.5% to 1.5% per transaction. Some gateways charge a monthly subscription fee, ranging from £10 to £50+

You may also be charged additional fees such as chargeback fees (when a customer disputes a transaction) or settlement fees (usually 20p to 50p) for transferring funds to your bank account.

How we test card processing products and merchant services for small businesses

We are rigorous. We tested 26 merchant services, evaluating them on four key criteria for UK-based small businesses. We conducted 45 tests over 22.5 hours in total, completing a total of 270 different evaluation tasks.

We explored 78 areas of investigation across 23 subcategories, under four main weighted categories. This is to ensure rankings are based on the most helpful insights to our readers.

Our main testing categories for merchant service providers are:

Card machines: Evaluating their charging power, receipt printing, connectivity, and interface. We also determine their usability based on two factors: how likely we are to recommend the product and the results of our user testing.

Software: Assessing suitability for POS integration, as well as how the provider handles payouts, the data and reporting available, which payment types are accepted, what security measures are offered, and more.

Help and support: Appraising the type, availability, and accuracy of the support the platform provides for its merchants.

Pricing: Assessing the transaction fees, contract costs, monthly costs, and upfront fees that the providers charge.