Which payment gateway should I use? Worldpay, Paypal or Sagepay?

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As a web design and internet marketing company we sell our fair share of ecommerce websites. A question we get asked without fail at the beginning of any build is “which payment gateway should I use?”

While we don’t say ‘use X’ or ‘use Y’ we do give out clients the most popular gateways that our existing clients use to help them make a decision. The most common gateway that we integrate is Worldpay with a ‘pay by Paypal’ option which seems to cover all bases.

The reason Paypal always initially seems like a speedier option is simply because with any payment gateway associated with a bank you must set up a business bank account and merchant account and the business and Directors need validated – this can take several weeks but once the merchant ID is received the testing and integration can begin.

Whichever payment gateway you choose for your ecommerce website, we recommend applying as soon as you feasibly can as application and verification can severely hold up the development of a website if it is left until a later stage of a build. For example, an integration with Evalon once took a year for account details to come through…in fact, they still haven’t but the site is now happily running along with Paypal that was set up, tested, branded and ready in just a few hours!

PayPal

Quoted time to set up

15 minutes

Time before money is available

Can be transferred into your bank account as soon as the funds are in your Paypal account (takes 7 days to transfer though)

Accepts Credit Cards

Yes

Accepts Paypal

Yes

Cost to set up

Free

Branded Payment Pages

Yes

Allows Online Invoicing

Yes

Customer requires Paypal account to pay

No

Allows Callback

Yes

Payment Fees

Purchase payments received (monthly)

Fee per transaction

>£0.00 GBP – £1,500.00 GBP

3.4% + £0.20 GBP

£1,500.01 GBP – £6,000.00 GBP

2.9% + £0.20 GBP

£6,000.01 GBP – £15,000.00 GBP

2.4% + £0.20 GBP

£15,000.01 GBP – £55,000.00 GBP

1.9% + £0.20 GBP

above £55,000.00 GBP

1.4% + £0.20 GBP

Website Payments Standard

Website Payments Pro

Credit Application

No

Yes

Discount for non-profits

Yes

No

Monthly Fees

No Monthly Fee

$30.00

PRO’s

  • Fast to integrate
  • Easy to set up account
    Money is availably quickly for transfer to bank account
  • Trusted Brand
  • Buyer Protection offers buyers confidence
  • No set up fees
  • No annual fees
  • No recurring fees

CON’s

  • Paypal has been known to freeze accounts with no warning http://www.regretsy.com/2011/12/05/cats-1-kids-0/
  • It is owned by Ebay and still has a reputation as being a payment gateway for smaller, Ebay style businesses
  • People still mistakenly believe that you need a Paypal account to use it
  • % cost per transaction
  • Support…haha, did I say support?!

Worldpay

Quoted time to set up

Quoted on website as 15 minutes for application process – this doesn’t take into account waiting for your account to be authorised.

In our experience it take 2-3 weeks for the application to go through then a further week or so once testing is complete for the account to become live.

Time before money is available

Hold funds for 4 weeks (Transfer Delay) **

Accepts Credit Cards

Yes

Accepts Paypal

Yes

Allows Callback

Yes

Cost to set up

£75.00 *

Currency Fees

One currency if free, to add additional currencies is £50.00 per currency *

Additional Fees

Ref: http://www.worldpay.co.uk/support/bg/index.php?page=account&sub=finance&subsub=when&c=WW

Branded Payment Pages

Yes

Monthly Fees

£15.00 *

Payment Fees

From 1.95% per transaction + 10p per transaction *

Allows Online Invoicing

No

Credit Application

Yes (need a merchant number) and website must comply to Worldpay rules

Discount for non-profits

Yes, to registered charities

PRO’s

  • Seen to be more professional than Ebay
  • Quick initial application process
  • Reasonably quick integration and brand payment pages
  • Fees reduce for large volumes of sales
  • Allows payment by Paypal to give the user the choice

CON’s

  • Very difficult to get definitive pricing form the website so you are forced to call for information
  • Account can take a while to set up and be authorised
  • Cost of application can quickly add up if you need additional options such as more than one currency or recurring fees,
  • Personal experience : support can be a little unhelpful

Sagepay

Time to set up

Quoted on the website as “anything from 10 days to 3 or 6 months in some cases“ due to the business and its Directors needing vetted first.

In our experience it take 3-4 weeks for the application to go through then a further week once testing is complete for the account to become live.

Time before money is available Awaiting information
Accepts Credit Cards

Yes

Accepts Paypal

Yes

Allows Callback

Yes

Cost to set up

Free

Recurring Annual Fee

None

Currency Fees

Multiple currency set up included

Branded Payment Pages

Yes

Monthly Fees

None

Payment Fees

£20.00 per quarter for up to 1000 transactions

10p per transaction over 1000 quota per quarter

Allows Online Invoicing

Yes

Credit Application

Yes (need a merchant number)

ref: http://www.sagepay.com/online-payments

PRO’s

  • Recognised brand
  • Allows payment by Paypal to give the user the choice
  • No % charge per transactions
  • Set fees per quarter – know where you stand
  • Multiple currencies available at no extra cost
  • No monthly fees

CON’s

  • Fees on 1000 transactions come out as 50p per transaction which is quite high – worst case a shop sells one item and it’s cost the £20.00! Unlikely I would have thought but worth considering.
  • Account can take a while to set up and be authorised
  • Personal experience : support is fantastic

Disclaimer:

Prices quoted are correct as of 10/12/2011 and have been taken from each payment gateway’s website. In all cases we recommend you phone/email and talk to a representative to ensure you have the most up-to-date information so you can choose the best option for you.

There are pros and cons we feel each gateway has are detailed below each option and should only be used as a guide, we do not suggest one gateway over the other and it is a decision to be made by you.

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