Menu

Home » Banking » Online Money Transaction Methods in the UK

Online Money Transaction Methods in the UK

With the increase in the number of online business worldwide, the UK market is irresistible by the giant e-commerce, and super fast payment systems such as a the Near-field Communication (NFC) powered devices like smartwatches and phones. It is estimated that that online businesses and payment options are increasing at an annual rate of 10.5%, and it is expected to go higher. However, it is essential to understand that online payment options come with different limits, prices, security among other beneficial features. Recently, several reputable online payment companies have partnered with the UK casino gambling industry. This enables players to deposit and withdraw their funds safely and without any problems. Here are some of the top recommended online money transactions methods in the UK.

PayPal

PayPayl is probably the first name that will cross your mind when you hear about purchasing things or paying for services online. The boast of having more than 20 million subscribed online UK user transacting each year and over 7 million business support it. The user interface is straightforward and can be used by anyone without experience. However, you need to watch out for the transaction fees before you get started. You will be charged 1.9% plus 20p (sales worth $55,000 monthly) up to 3.4% plus 20p(sales worth $1500 monthly) per each transaction. Paypal offers some decent pricing rates for large businesses as well. The fact that it accepts both credit and debit cards makes it one of the most preferred online payment options.

Pros

  • You can receive payments directly into your Paypal account
  • It is optimised for mobile and tablet use
  • Secured with modern technology to protect fraud
  • Accepts international transactions
  • Can be operated by someone without advanced web skills

Cons

  • The charges are relatively high for traders with low sales
  • The limitation is sometimes imposed without proper investigations

Payoneer

Payoneer prides in being available in more than 200 countries globally with over 4 million subscribers, not mentioning the 150+ different currencies. This online payment option features many similarities with Paypal. It allows users to receive payments from different companies and businesses. Payoneer offers a wide range of services such as; enabling you to complete local bank transactions from the US, Japan, EU, Canada, Australia and the UK, faster payments using the Marketplace Payments and billing service. Creating an account as well as receiving payments from another Payoneer user is free but you will be charged 3% for billing services. Also, transferring money to a bank account with a different currency from GBP, EUR, USD and JPY will be charged up to 2% and a withdrawal fee of $1.50 on withdrawals to any UK Sterling bank account.

Pros

  • You will receive an extra $25 for receiving the first $100
  • All payments from companies and clients are completed within hours
  • You will save up to 90% on your transaction fees

Cons

  • It is not suitable for an online store but best for freelancers
  • High charges on credit cards despite the freedom to accept any currency
  • You may receive poor customer support

Authorize.net

Authorize.net is a veteran online payment option with more than 400,000 registered members from around the world. This company offers two solutions to UK based merchants; chose between Payment Gateway & Merchant Account or a Payment Gateway. You will be charged a transaction fee of $2.49 plus $0.15 and a fee of $19 monthly Gateway.

Pros

  • Users get automated recurring billing for free
  • Has advanced fraud detection software
  • Comes with a Virtual Terminal

Cons

  • They charge a monthly fee.
  • All currencies beyond GBP are charged an extra $15 per month
  • Transaction fees are higher compared to other companies

Amazon Pay

With Amazon Pay Merchants services, you will be able to provide your customers to transact through their existing accounts. It can be used as a stand-alone payment system or an addition to your current payment method. Given the company’s popularity especially in the UK, you will be able to use it across many platforms. Users are charged processing and authorization fee of 3.4% plus 20p (under sales worth $1500 per month) down to 1.4% plus 20p (over sales worth $55000 per month. There is also a cross-border fee of between $0.4% up to 1.5% and a chargeback dispute fee of $14 not including VAT.

Pros

  • Has a trustworthy system for checking in and out using the existing Amazon account.
  • All transactions are completed on the site, and you may be given a customer name and an email to for checking in.
  • It’s easy to add another payment method to check out on their online store.

Cons

  • High fees for low scale traders
  • It may take several days before it is approved
  • You will wait for 3 to 5 working days to receive your payment.

SagePay

SagePay has a complete range of payment options for both the online and land-based businesses. The company claims to have more than 55,000 businesses using their services. What makes theSagePay unique are the flat monthly fees and without transactions fees. It is among the best rated payment method in the UK today. You will be charged $19.90 for 350 transactions per month and $45 per month for buying 500 tokens per month.

Pros

  • Comes with a simple drop-in check out integration
  • There are no transaction charges and Flat monthly charges

Cons

  • You will require a more bespoke quote for all transactions exceeding 3000 per month
  • Users are charged 2p per minute for all calls to the customer support
  • You need technical skills to use

Stripe

Stripe has significantly grown in population over the recent past. The company offers the option for setting up recurring billing as well as direct debit services. There is no setup, monthly or any other hidden charges on the site. All European cards will be charged 1.4% plus 20p and 2.9% plus 20p on all non-European cards. There is 1% plus 20p for SEPA Direct Debit.

Pros

  • You need to have advanced technical skills to operate it.
  • The charges for Europen and Non-European are slightly higher than their competitors.
  • The transfers will reflect in your account on the 7th day

WorldPay

WorldPay is one of the most popular and biggest online payment companies in the UK. The company boasts of processing more than 40% of the online card transactions. When it comes to accepting card payments online, WorldPay offers; online payment Gateway in more than 116 currencies, online merchant accounts, and pay by link options. The charges vary depending on the options, for instance, Pays As You Go has an online setup fee of $25 plus 10p per transaction gateway fee, a fixed monthly fee of $49.99, and Pay by Link charges $9.95 monthly.

Pros

  • Offers flexible pricing rates
  • Supports all major debit and credit cards
  • Have secure payments enhanced by fraud screening to protect users
  • Customers can set up recurring payments and subscription payments plans

Cons

  • The transaction fees are not displayed for everyone to see
  • It’s not a complete payment solution

Related Banking News