Payment Gateway Costs

Below is a breakdown of the costs and charges for some of the most popular online payment gateways in the UK. The costs are shown in GBP and ordered from cheapest to most expensive based on monthly costs and transaction fees. Click on the name to visit the website.

You might also want to read our article about the most popular payment gateways.

1. PayPal

Fixed Monthly Cost:

  • PayPal’s standard account has no monthly fee.
  • For more advanced features, such as the PayPal Payments Pro service, there’s a £25 per month fee.

Transaction Fees:

  • Standard rate: 2.9% + £0.30 per transaction (for UK domestic transactions).
  • International transactions: 4.4% + a fixed fee based on the currency received.
  • Micropayments: 5% + £0.05 for transactions under £10.
  • Discounted rates: Available for high-volume sellers (negotiable).

Summary:
PayPal is widely used and doesn’t charge a monthly fee for basic services. While the transaction fees are relatively high for international payments, the platform’s ease of integration and global reach make it a popular choice for small to medium-sized businesses.

2. Stripe

Fixed Monthly Cost:

  • No monthly fee for the basic plan.

Transaction Fees:

  • Standard rate: 1.4% + £0.20 per transaction (for UK domestic transactions).
  • International transactions: 2.9% + £0.20 per transaction.
  • Currency conversion: 2% for converting payments to a different currency.
  • Micropayments: 2.9% + £0.20 for transactions under £10.

Summary:
Stripe is ideal for developers due to its robust API and extensive customization options. Like PayPal, it has no monthly fee, but its transaction fees are slightly lower for domestic transactions. Stripe is well-suited for businesses that need more control and a flexible system, especially if they are processing international payments.

3. Square

Fixed Monthly Cost:

  • Square’s basic service is free, but it offers additional tools with the “Essentials” plan for £10 per month.
  • Advanced plans like “Plus” and “Premium” offer more features, starting at £26 per month.

Transaction Fees:

  • Standard rate for online payments: 2.6% + £0.10 per transaction (domestic).
  • International transactions: Additional 1% fee.
  • Micropayments: 2.75% for in-person transactions.
  • Chargeback fee: £15 per dispute.

Summary:
Square is another highly popular choice for small businesses, especially for point-of-sale (POS) systems. It offers a free plan for online payments, and its transaction fees are slightly lower than PayPal’s, though it charges extra for international cards. Its additional features, like invoicing and customer management, are available with the paid plans.

4. 2Checkout (now Verifone)

Fixed Monthly Cost:

  • £0 per month for the 2Sell plan.
  • £16.80 per month for the 2Subscribe plan (for subscription-based businesses).

Transaction Fees:

  • Standard rate: 3.5% + £0.25 per transaction (for UK domestic transactions).
  • International transactions: 4.5% + a fixed fee based on currency received.
  • Micropayments: No specific micropayment rate, but pricing remains at 3.5% for low-value transactions.
  • Additional fees: Some features, such as advanced fraud protection, can come with additional charges.

Summary:
2Checkout offers global coverage and is great for businesses with international customers. While the basic plan has no monthly fee, the transaction fees are higher compared to PayPal and Stripe. The platform is especially useful for subscription-based businesses with its 2Subscribe plan.

5. Authorize.Net

Fixed Monthly Cost:

  • £20 per month for the basic plan.
  • There’s also a £25 setup fee (one-time).

Transaction Fees:

  • Standard rate: 2.9% + £0.20 per transaction (domestic).
  • International transactions: 3.9% + a fixed fee based on currency.
  • Micropayments: 2.9% + £0.20 for transactions under £10.
  • Additional charges: Setup fees, chargeback fees, and fees for using advanced features such as recurring billing.

Summary:
Authorize.Net provides a solid and customizable payment gateway with advanced features like recurring billing and fraud detection. Although its monthly cost is higher than PayPal, Stripe, and Square, its features are geared toward businesses that need more control over their payment systems.

6. Braintree (a PayPal Service)

Fixed Monthly Cost:

  • £0 per month for the basic plan.
  • Additional features may incur costs, depending on the business’s needs.

Transaction Fees:

  • Standard rate: 2.9% + £0.30 per transaction (domestic).
  • International transactions: 3.9% + a fixed fee based on the currency received.
  • Currency conversion fee: 2% for converting payments to a different currency.
  • Micropayments: 2.9% + £0.30 per transaction under £10.

Summary:
Braintree offers similar features to PayPal since it is owned by PayPal, but with more advanced payment solutions for larger-scale businesses. Its pricing structure is very similar to PayPal’s, and there’s no monthly fee for the basic plan, which makes it an attractive option for businesses processing both domestic and international payments.

7. Worldpay (from Vantiv)

Fixed Monthly Cost:

  • Custom pricing, but typically £10-£30 per month for small to medium-sized businesses. Larger businesses may pay higher fees based on transaction volume and feature requirements.

Transaction Fees:

  • Standard rate: 2.75% + £0.10 per transaction (domestic).
  • International transactions: 3.99% + a fixed fee based on the currency received.
  • Micropayments: No specific micropayment rate, but the fees are typically higher for smaller transactions.
  • Custom pricing: Available for high-volume merchants.

Summary:
Worldpay is one of the biggest names in payment processing, offering a variety of plans and services tailored to businesses of all sizes. Its fees are competitive for small to medium-sized businesses, but it’s most beneficial for larger companies that can negotiate better rates based on volume. The additional monthly costs are typically higher than PayPal, Stripe, or Square, but the enterprise-level features are well-suited to businesses with complex payment needs.

8. Shopify Payments

Fixed Monthly Cost:

  • Shopify’s subscription plans start at £25 per month for the Basic plan.
  • More advanced plans range from £69 to £259 per month, depending on the features required.

Transaction Fees:

  • For Shopify Payments (integrated): 1.6% + £0.20 per transaction for the Basic plan.
  • For external gateways: An additional 2% fee applies.
  • Micropayments: Varies based on the gateway used.

Summary:
Shopify Payments is ideal for users of the Shopify e-commerce platform. There are no extra fees for using Shopify Payments, but the Shopify subscription costs can be higher than the other gateways. For businesses already on Shopify, however, this is an integrated solution that saves time and avoids extra fees for payment processing.

Conclusion

The most affordable payment gateways for UK businesses are PayPal, Stripe, and Square, all of which offer no monthly fee for basic usage. However, Square has the edge in terms of lower domestic transaction fees (2.6% + £0.10). On the other hand, Worldpay and 2Checkout have higher fees, but they offer additional features and support for international businesses.
For small businesses, PayPal, Stripe, and Square are excellent starting points due to their low cost of entry, while Authorize.Net and Braintree may be better suited to businesses with more specific payment needs. Shopify Payments is the best option for Shopify store owners but comes with a higher monthly cost.