Compare card payment providers: What should your business really be looking for?
If you're reviewing your business costs, it's easy to focus on one number: the rate you're paying to take card payments.
But in our experience at Switch4Profit, that's only part of the picture.
The right payment solution needs to work with your EPOS, support your team when things go wrong, get your money into your bank quickly and give you the flexibility to change as your business grows.
That's why we believe it's worth looking at the whole package, rather than simply comparing headline rates.
So, how do they compare?
There are plenty of payment providers competing for UK businesses, from established names such as Worldpay and Barclaycard to newer providers including Dojo, Teya, Square, SumUp and Flatpay.
They all have their strengths, but there can be some important differences when you look beyond the headline price.
It's not just about the headline rate
We've seen businesses spend far too much time comparing transaction rates without looking at what they're actually paying overall.
For example, a flat rate might look attractive when you're processing a relatively small amount each month. But as your turnover increases, the difference between a flat rate and a properly structured pricing model can become significant.
There can also be other costs to consider — monthly fees, settlement charges, terminal rental, PCI fees, authorisation fees and contract termination costs.
The rate on the sales proposal isn't necessarily the number that matters most. Your total cost is.
That's why we always recommend looking at your actual statements and invoices before deciding whether you're getting a good deal.
Technology matters too
For a busy pub, restaurant, club or retail business, your card machine doesn't operate in isolation.
It needs to work with your tills and EPOS, keep transactions moving when you're busy and make life easier for the people running the business.
Dojo has integrations with more than 450 EPOS systems, meaning businesses have a wide choice of technology rather than being forced into one particular ecosystem.
For hospitality businesses in particular, the ability to connect payments with EPOS, bookings and other systems can make a real difference.
It can reduce manual keying, speed up service, simplify reconciliation and give you better visibility of what's happening across the business.
And then there's support
This is one of those things you don't really appreciate until you need it.
A payment system can work perfectly for months — until it doesn't.
When you're standing behind a busy bar on a Saturday night and payments stop working, being able to speak to someone quickly is very different from submitting an online support request and waiting for a response.
Dojo provides 24/7 UK-based human support, which is particularly relevant for businesses that trade evenings and weekends.
Cash flow is another big consideration
Getting paid isn't the same as having access to your money.
For businesses with significant weekend turnover, waiting several days for funds to reach the bank can put unnecessary pressure on cash flow.
Dojo offers next-business-day settlement, with faster settlement options also available.
For a hospitality business that can take a significant amount of money over a weekend, that can make a meaningful difference.
What about the other providers?
There isn't a single payment provider that is right for every business.
Square has built a strong reputation for simplicity and ease of getting started, particularly among smaller businesses. However, businesses wanting more advanced functionality may need to move onto paid plans, and its approach is more closely tied to the Square ecosystem.
SumUp is another popular option for smaller businesses and mobile traders, with simple hardware and straightforward pricing. However, flat-rate pricing can become less attractive as transaction volumes increase.
Flatpay promotes a very simple proposition and a low headline transaction rate. But businesses should look closely at the length of the agreement, terminal costs and what is included within the headline rate.
Teya offers an increasingly broad range of payment, EPOS and financial services for SMEs. As with any provider, it's important to look beyond the headline offer and understand the full pricing structure, settlement options and contract terms.
Worldpay, Elavon and Barclaycard are established providers with extensive experience and large customer bases. However, businesses should check contract length, settlement times, additional fees and termination arrangements before signing up.
The point isn't that one provider is automatically right for everyone.
It's about finding the right fit for your business.
So, what should you actually compare?
Before switching payment provider, we'd suggest looking at these five things:
1. Your total monthly cost
Don't just compare the transaction rate. Look at every fee you're paying.
2. Your contract
How long are you tied in for? What happens if you want to leave? Are there automatic renewals or termination charges?
3. Your technology
Will the payment system integrate properly with your existing EPOS, bookings and other systems?
4. Your cash flow
How quickly will your money reach your bank account, particularly after busy weekends?
5. The support you'll receive
When something goes wrong, can you speak to a real person when you need them?
That's where Switch4Profit comes in
At Switch4Profit, we don't believe businesses should switch provider simply because someone has offered them a lower rate.
We look at the bigger picture.
We review your current setup, your costs, your technology and your contracts, then help you understand where there may be opportunities to save money or improve the way your business operates.
And our advice is completely free.
If you're a pub, restaurant, club, retailer or other SME and you're wondering whether you're getting a good deal, send us your current statement.
We'll take a look and tell you what we find.
No hard sell. No obligation. Just straightforward advice.
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