Credit Card Processing

Most online businesses need the facility to accept payments from their clients, and the most popular online payment system is to use credit cards. To receive credit card payments, you will need to use a credit card processing company. Such companies are usually referred to as Payment Service Providers (PSPs). Many of these are available, though choosing the best one for your business requires a little work as they vary considerably.

Merchant accounts – do you need one?

If you are planning to offer your servgices or products online you will need accept credit card payments.

In the past, most businesses needed a merchant account to accept credit card payments. However, now there is a large number of PSPs that allow you to process credit cards economically; they are no longer essential. In some circumstances, they are a better option, especially for larger businesses. They can be cheaper than PSPs, and they provide a higher level of service. However, they can be challenging to set up, and you would need to undergo a detailed credit check. For most new businesses, a PSP is a preferred solution.

Jurisdictions

Which Payment Service Provider is best for your company

Different PSPs provide services in various jurisdictions, so obviously you will need to select one that will process credit cards in your location. While many PSPs offer comprehensive coverage, for some jurisdictions there is a limited choice.

Here, we provide an indication of which major merchant covers which jurisdiction, but this is not an exclusive list. You will probably find a wider choice than we indicate, but this should give you a good starting point. 

Credit Card Processing Costs

How much can you expect to pay?

Credit card processing costs vary considerably. We provide some base costs offered by various companies for processing payments, but, while these are a good starting point, there are several other things to consider. Where possible, we indicate costs in different jurisdictions, for instance, within and outside the EEA. You will also need to pay an additional fee each time a client requests a chargeback (refund). These can be very expensive, and costs vary considerably between companies. You might also need to pay a monthly service charge and in some cases, PCI compliance fees, so you should check these directly with your intended PSP.

Planning to accept credit cards? Learn how it works.

How credit card processing works

Credit card processing is far more complicated than it appears on the surface, and many different players are involved, with each of these charging a fee. However, from your viewpoint, you do not need to concern yourself about these details. You will pay fees as we have indicated to your PSP, who will subsequently pay the other parties involved in the processing chain.
However, you do need to be aware of alternative credit card processing models, of which there are three alternatives:

1

Traditional shopping cart

Traditional shopping cart is the simplest model which enables your customers to pay you when they place an order. It is suitable for most e-commerce companies and online shops. They pay at checkout.

2

Pay by link

Pay by link is more appropriate to companies that invoice their customers. The invoice contains a link that directs the client to the PSP site where they make the payment. While there is usually a monthly fee for providing the service, it also means you can use this method without having to manage a website.

3

Physical card readers

Card readers such as Square and iZettle allow you to accept payments at the point of sale (POS). They are an excellent solution for businesses that carry out work remotely, for instance, taxi drivers, or at their customers’ premises, for example, tradesmen.

Choosing a PSP for your jurisdiction

In the table below we list several providers and indicate some of the jurisdictions where they operate. As you can see, in most jurisdictions there is a wide choice, though in others your choice is more limited. We also list the standard transactions costs inside and outside the EEA as a percentage of the transaction value. There is also a nominal fixed cost for each transaction, and as we mentioned above, you should also consider chargeback fees. 

Credit Card Processing Companies - Jurisdictions and Fees

The below information is correct as at September 2020. Please be aware that conditions and rates can vary overnight. Please contact us for up-to-date information and for information regarding other jurissictions.

Merchant  UK             Ireland   Cyprus   Cost inside EEACost outside EEA
2checkoutYESYESx1.4%3.5%
AlliedWalletYESYESx1%1.95%
Amazon payYESYESx1.4%3.4%
AsiaPayxxxPOAPOA
BitpayYESYESYES1%1%
BraintreeYESYESYES1.9%-
Checkout.comYESYESYESPOAPOA
CoinbasexYESx1.49%3.99%
CyberSourceYESxxPOAPOA
GOCARDLESSYESxx-2%
Payfortxxx-2.94%
PayPalYESxYES1.9%3.4%
PayseraYESYESx0.75%2%
SAGEYESYESx2.5%POA
StripeYESxYES1.4%2.9%
WorldlineYESYESYESPOAPOA
WorldpayYESYESYES2.75%2.75%

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