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- How to accept international payments and transactions?
- How to choose the best payment gateway for small businesses?
Payment gateway fees comparison 2025: find the low cost payment gateway for your business
Selecting the right payment gateway can make or break your business’s profitability. With transaction fees eating into every sale, finding a low cost payment gateway that doesn’t compromise on features or security has become crucial for businesses of all sizes. As we move through 2025, the payment processing landscape has evolved significantly, with providers adjusting their fee structures to accommodate new regulations, technological advances, and changing consumer behaviours.
Understanding payment gateway fees isn’t as straightforward as comparing headline rates. While one provider might advertise lower transaction fees, they could be charging hefty monthly fees or hiding costs in currency conversion charges. This comprehensive comparison examines the real payment gateway cost of five major providers (Fondy, Stripe, Barclays, WorldPay, and PaymentSense) to help you make an informed decision for your business.
What determines payment gateway cost
Before diving into specific provider comparisons, it’s essential to understand the components that make up your total payment processing costs. Transaction fees represent just one piece of the puzzle. Here are the key factors that influence your overall payment gateway expenses:
- Transaction fees structure: This includes the percentage rate plus fixed fee per transaction, which varies based on card type and origin. Domestic debit cards typically carry the lowest fees, while international credit cards and corporate cards command premium rates.
- Monthly subscription and setup costs: Some providers charge monthly fees ranging from £0 to £30+, while others may require one-time setup fees that can reach hundreds of pounds.
- Business volume and pricing tiers: Your transaction volume plays a crucial role – providers often offer tiered pricing that rewards higher volumes with lower percentage fees, making scalability an important consideration.
- PCI compliance charges: These security-related fees can range from £0 to £30 monthly, with some providers including compliance in their base price while others charge separately.
- Industry type and risk assessment: High-risk industries face elevated rates across all providers, while established businesses with strong credit histories and low chargeback rates can negotiate better terms.
- Payment method diversity: Each payment type: from traditional cards to digital wallets and alternative payment options, comes with its own fee structure, affecting your overall costs.
- Hidden and additional fees: These include chargeback fees, currency conversion charges, refund processing fees, and various service charges that can significantly impact your total expenses.
Fondy: the versatile low cost payment gateway
Starting with the Fondy payment gateway that has positioned itself as a genuinely competitive option in the European market. With no setup fees or monthly charges for standard accounts, Fondy’s transparent pricing model starts at just 0.7% + £0.20 for high-volume merchants processing domestic transactions. Even at standard rates of 1.3% + £0.20 for domestic cards, Fondy remains highly competitive.
What sets Fondy apart is its comprehensive feature set included in the base price. While other providers charge extra for fraud protection, multi-currency processing, and advanced reporting, Fondy includes these as standard. The platform supports over 150 currencies and 300 payment methods, making it ideal for businesses with international ambitions.
International card processing with Fondy costs 3.2% + £0.20, which aligns with industry standards. However, their alternative payment method fees ranging from 1.2% to 1.6% + £0.20 are notably lower than many competitors. For businesses processing significant volumes, Fondy’s tiered pricing can reduce fees to as low as 0.7% + £0.20, making it one of the most cost-effective solutions available.
Stripe: the developer favourite with rising costs
Stripe has long been the go-to choice for tech-savvy businesses, but recent fee increases have made it less attractive from a pure cost perspective. UK card transactions now cost 1.5% + £0.20, up from the previous 1.4% + £0.20. Premium and corporate cards incur higher fees at 1.9% + £0.20, while EEA cards cost 2.5% + £0.20.
Where Stripe’s costs really add up is in their additional services. Stripe Billing adds 0.7% to recurring transaction volumes, Stripe Radar for advanced fraud protection costs £0.05 per screened transaction, and dispute fees have recently increased to £20 per incident, with an additional £20 if you contest the chargeback. Currency conversion adds another 2% on top of standard fees.
Despite these costs, Stripe remains popular due to its extensive API capabilities and global reach. For businesses prioritising ease of integration over the lowest possible fees, Stripe’s higher payment gateway cost might be justified. However, with alternatives like Fondy offering similar functionality at lower rates, it’s worth questioning whether the premium is necessary.
Barclays: traditional banking with modern fees
Barclays Merchant Services offers several pricing tiers, each with different fee structures. Their Smartpay Touch plan costs £29 + VAT monthly with transactions at 1.6%, while the Flex Mobile option reduces the monthly fee to £15 + VAT but maintains the same transaction rate. The Barclaycard Anywhere option eliminates monthly fees but requires a one-time £29 + VAT payment.
Additional charges quickly accumulate with Barclays. PCI DSS non-compliance adds approximately £0.30 per transaction, refund processing costs a flat £0.30, and their online gateway charges £20 + VAT monthly after 350 free transactions. These hidden fees can significantly increase your actual payment gateway cost beyond the advertised rates.
Barclays does offer next-day settlement and custom rates for businesses processing over £100,000 annually. However, their requirement for 12-18 month contracts and lack of pricing transparency make them less appealing for small to medium businesses seeking flexibility and low cost payment gateway options.
WorldPay: flexible plans with hidden complexities
WorldPay’s pricing structure appears straightforward with their Pay As You Go option at 2.75% + £0.20 per transaction with no monthly fees. Their Monthly Fixed plan charges £19 per month but reduces debit card fees to 0.75% while maintaining 2.75% for credit cards. Custom pricing becomes available for businesses processing over £75,000 annually.
Terminal rental adds another layer of cost, with the DX4000 at £17.50 monthly and the DX8000 at £22.50 monthly. While WorldPay currently offers a promotional rate of £1 per month for the first year, businesses must budget for the full cost thereafter. Additional fees include £5 monthly for PCI DSS compliance, £19.95 for their premium gateway, and £20 per chargeback incident.
The My Business Dashboard, essential for detailed reporting and analytics, costs £4.99 monthly after a three-month free trial. Virtual terminal access adds £9.95 monthly. When all these fees combine, WorldPay’s actual cost often exceeds their headline rates significantly, making careful calculation essential before committing.
PaymentSense: tiered pricing with multiple add-ons
PaymentSense structures their pricing around monthly service plans based on processing volume. The Starter plan for businesses processing up to £50,000 costs £8.29 monthly with annual billing or £9.95 month-to-month. Regular businesses processing £50,000-250,000 pay £12.45 or £14.95 respectively, while Advanced tier merchants processing £250,000-1.2 million pay £16.62 or £19.95.
Transaction fees vary significantly by card type, with credit cards averaging 1.1% + 13p, debit cards at 0.4% + 2.9p, and business cards reaching 2.09%. A minimum monthly service charge of £24.95 applies regardless of transaction volume. PCI DSS management adds £4.95 + VAT monthly, with non-compliance penalties of £35 + VAT monthly.
Additional fees include £3.99 monthly for Account on File services and £1.89 for optional terminal support. While PaymentSense’s tiered structure might appeal to growing businesses, the combination of monthly fees, variable transaction rates, and numerous add-ons often results in higher overall costs compared to more transparent providers.
Why Fondy stands out as the optimal choice
Having examined all major providers, Fondy emerges as the most balanced solution for businesses seeking a truly low cost payment gateway without sacrificing functionality. Beyond competitive transaction fees, Fondy’s ecosystem of business tools creates additional value that other providers simply cannot match. Here’s what makes Fondy the superior choice:
- Virtual IBAN and business accounts: Starting at just £10 monthly, these services eliminate the need for separate business banking relationships, streamlining financial operations while reducing overall costs. More details you can read here.
- Split payment functionality: This feature enables marketplace and platform businesses to automatically distribute funds to multiple recipients, functionality that typically requires expensive third-party solutions with other providers. Check it out on this page.
- Instant settlement with Fondy Flow: While competitors charge premium fees for expedited settlements or offer only next-day transfers, Fondy includes instant settlement as a standard feature, crucial for cash flow management.
- Comprehensive API without extra charges: Their robust API supports custom integrations without additional fees, unlike providers that monetise every API call or advanced feature.
- Superior international payment handling: With support for 150+ currencies and competitive exchange rates, businesses can expand globally without prohibitive fees eating into profits.
- Included fraud protection: Their system incorporates machine learning and real-time monitoring to minimise chargebacks and protect revenue, features that rival paid solutions from other providers.
- Exceptional customer support: While many providers charge for phone support or limit assistance to business hours, Fondy offers comprehensive support across multiple channels with dedicated account managers for qualifying businesses.
These advantages combine to create a payment processing solution that not only costs less in pure transaction fees but also provides greater value through included features and services that competitors charge extra for or don’t offer at all.
Making the right choice for your business
Selecting a payment gateway requires balancing multiple factors beyond just payment gateway fees. Consider your current transaction volume and growth projections. A provider offering the lowest rates for small businesses might become expensive as you scale, while those with higher starting rates but better volume discounts could save money long-term.
Evaluate the total cost of ownership, including all fees, not just headline transaction rates. Factor in the value of included features versus paid add-ons. A slightly higher transaction fee might be worthwhile if it includes fraud protection, instant settlements, and comprehensive reporting that would cost extra elsewhere.
Technical requirements matter too. If you need extensive API customisation or specific integrations, ensure your chosen provider supports these without excessive fees. Consider contract terms carefully – the flexibility to switch providers without penalties can be valuable as your business evolves.
Geographic considerations also play a role. If you serve international customers or plan expansion, choosing a provider with competitive international rates and multi-currency support from the start prevents costly migrations later. Fondy’s global capabilities and transparent international pricing make it particularly suitable for businesses with international ambitions.
Conclusion
The payment gateway landscape in 2025 offers more choices than ever, but this comparison clearly demonstrates that not all providers deliver equal value. While Stripe commands developer loyalty and traditional banks like Barclays offer familiarity, their higher fees and hidden costs make them increasingly difficult to justify for cost-conscious businesses.
Fondy’s combination of competitive rates, transparent pricing, and comprehensive features positions it as the optimal choice for businesses seeking a low cost payment gateway that doesn’t compromise on capabilities. From startups processing their first transactions to established businesses handling millions in volume, Fondy’s scalable pricing and robust feature set provide exceptional value.
As payment processing costs continue to impact bottom lines across all industries, choosing the right provider becomes increasingly critical. By selecting a truly cost-effective solution like Fondy, businesses can reduce their payment gateway cost while accessing tools and features that support growth and operational efficiency.