Can you recommend the best payment processor providers?

David White · Aug 26, 2009

I would be interested in what option you would all recommend for the best providers for accepting payments online. The list of available options is quite large and I have little knowledge.

So far I have briefly looked at PayPal and 2checkout.com but there are so many around it is hard to choose. So far the average fee for taking payments online is 2-3%, is this about normal?

David White · Aug 26, 2009

I think Merchants is the correct term I was looking for

KidsBeeHappy · Aug 26, 2009

You need to work out whether you want to go with an option that needs a merchant account, or not.

Worldpay now operate a service that doesn't need a merchant account.
Sagepay still needs merchant accounts.
Google checkout and paypal don't need merchant accounts.

FSB members get discounted merchant accounts with streamline (no monthly fees, set up fees, and discounted transaction rates).

You need to compare like & like, if you're comparing make sure you include merchant account & processing rates.

bestforsextoys · Aug 26, 2009

I would not recommend 2checkout

I would recommend nochex,worldpay and sage pay the best ones at the moment

Please let me know what you think

Thanks

webpromoterservice · Aug 26, 2009

stay well clear from nochex and 2checkout.Poor customer service especially nochex and not very good at adapting to a growing business.

I would recommend worldpay.The service is great,you can take telephone orders and they are very helpful in fighting fraud with the tools they provide.You can customize it to your preferences.
Paypal is also good because it is widely accepted but i was not really impressed with it when it came to conversion tracking on numerous sites that i managed.Just my opinion.

8420PR · Aug 26, 2009

Does anyone used perpetual payments? They seem to have the best pricing but I haven't heard of them before.

Anybody got any information or feedback?

KidsBeeHappy · Aug 26, 2009

Will your customers have heard of them?
WIll they drop out of your shopping cart when some unknown company asks for their credit card details?
That could cost you a lot more than a few extra pennies in transaction fees.

Online Trader · Aug 26, 2009

Sagepay all the way for me, Worldpay keep your money for 60 days which is IMHO a right CON

Axiar · Aug 26, 2009

If you are starting a new business and have no trading history, you are unlikely to be able to get your own merchant account. In this case, you will need something like RBS Worldpay, Google Checkout etc. If you can get a merchant account (and this will give you the best rates and settlement times), you then need a Payment Service Provider such as Sage Pay (which used to be called Protx) to connect your merchant account to your website.

Its also worth noting that the rates and settlement period for services like RBS Worldpay is usually negotiable. Settlement period is usually set based on the fraud risk for your type of business. If you can demonstrate you are likely to be a low risk, you are likely to get your money faster. Its also worth trying to renegotiate once you prove yourself.

Good luck!

Jonathan.

David White · Aug 26, 2009

Thanks for the tips.

Would it be easier and more cost-effective to receive payments via bank transfer or cheques initially then? Then I can build up my reputation?

Axiar · Aug 26, 2009

Of course this depends very much on your business/products.

I think if you can handle the costs/settlement then it would be worth setting up to handle credit cards. For an online business I would consider this essential.

If I am looking for a product online and I can buy it right now with a credit card, I will do this over a company I have to contact and arrange payment with. To me, that company is not taking online business seriously.

Jonathan.

boroova · Aug 27, 2009

I have used Wordpay (together with Barclay's merchant account) and Paypal. Also Google Checkout is worth recommending.

paretowasright · Aug 27, 2009

Axiar said:
If you are starting a new business and have no trading history, you are unlikely to be able to get your own merchant account. In this case, you will need something like RBS Worldpay, Google Checkout etc. If you can get a merchant account (and this will give you the best rates and settlement times), you then need a Payment Service Provider such as Sage Pay (which used to be called Protx) to connect your merchant account to your website.

Its also worth noting that the rates and settlement period for services like RBS Worldpay is usually negotiable. Settlement period is usually set based on the fraud risk for your type of business. If you can demonstrate you are likely to be a low risk, you are likely to get your money faster. Its also worth trying to renegotiate once you prove yourself.

Good luck!

Jonathan.

Jonathan,

You CAN get a merchant account provided you have a business plan and a reference from your Bank. I have done this myself in the last 4 months and for other clients and in no examples were there any bonds etc required....all with sagepay/streamline and FSB memberships.

Dymo King · Aug 27, 2009

We use sagepay (with barclays) and secure trading (with natwest via fsb). Secure trading is a better option if you have more than one site as you can customise the payment pages for each site. When we first started with sagepay/barclays they paid us after 30 days, but after trading with them for a while they put us on the standard payment terms so we get the cash after a couple of days. If you have problems getting a bank to give you a merchant account go via the fsb, that should help.

jolew · Aug 27, 2009

Online Trader - WorldPay keep your money for 60 days? Most i've heard of is 28 days on the World Direct account? Maybe it depends on type of shop, but WorldPay are pretty sound - in fact we've had good feedback from customers (as we all - Taxpayers, now own RBS!!) because they feel more secure using it....

PayPoint net · Aug 28, 2009

Hi there

Agree with paretowasright it is completely possible to get a merchant account provided you have a business plan.

The rates and terms that you get from the merchant account provider will depend on your business model and your trading history. Brick and mortar banks are unlikely to give merchant accounts to non-traditional business models. Complete start-ups may be offered higher rates from their acquiring banks, but these can often be reviewed after 6 - 12 months. It is worthwhile shopping around for your merchant account, not only on the high street but with online payment service providers, as many of them have relationships with a number of acquiring banks and so can leverage this in your favour for lower rates.

For more information on the application process, you can find out what happens after you sign up for our Complete Solutions package (payment gateway and internet merchant account) on our website.

Feel free to come back if you have any questions - the best of luck with your business!

Rory

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Can you recommend the best payment processor providers?

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