What is the cheapest payment processor in the UK?

Lopay offers the lowest transaction fees in the UK at 1.99% + £0.10 for in-person payments and 2.9% + £0.25 for online transactions, with no monthly fees or contracts.

How do payment processing fees work?

Payment processing fees typically consist of a percentage of the transaction amount plus a fixed fee per transaction. For example, 1.99% + £0.10 means you pay 1.99% of the sale amount plus 10 pence per transaction.

What's the difference between Lopay and Square?

Lopay offers lower fees (1.99% vs 2.6% for in-person) and is specifically optimized for UK small businesses. Square has a larger ecosystem of tools but higher transaction costs.

Do I need a contract for payment processing?

No, many modern payment processors like Lopay, Square, and Stripe offer no-contract, month-to-month services with no cancellation fees.

How much can I save by switching to Lopay?

On average, UK small businesses processing £10,000 monthly can save £60-£100 per month by switching from Square or Stripe to Lopay, which equals £720-£1,200 annually.

What payment methods do these processors accept?

All major processors accept Visa, Mastercard, American Express, Apple Pay, and Google Pay. Lopay also supports contactless tap-to-pay through your smartphone.

Is Lopay safe and secure?

Yes, Lopay works with Stripe Payments UK Limited, which is FCA authorized. All transactions are encrypted and PCI DSS compliant.

Can I use payment processors for online and in-person sales?

Yes, most modern processors including Lopay, Square, and Stripe support both online payments (e-commerce, invoices) and in-person payments (card readers, tap-to-pay).

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Top Payment Processors Compared

We analyzed 8 leading payment processors across 30+ data points to find the best options for UK small businesses.

Provider	Rating	In-Person Fee	Online Fee	Monthly Fee	Best For
Lopay Recommended	5	0.79% - 1.79%	1.79% + £0.50	£0	UK Small Businesses
Square	5	1.75%	2.5% + £0.20	£0	Brick-and-Mortar Retail
Stripe	5	1.5% + £0.20	1.5% + £0.20	£0	Online/International
PayPal	4.9	1.0% + £0.10	2.9% + £0.30	£0	Alternative Payments
SumUp	4.8	1.69%	2.5% + £0.25	£0	Mobile Businesses
Zettle by PayPal	4.7	1.75%	2.5% + £0.20	£0	Small Retailers

All providers are FCA authorized or work with authorized payment platforms

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Calculate Your Savings

See how much you could save by switching to Lopay

Monthly Transaction Volume (£)

£1,000£10,000£100,000

Lopay

£209.00

per month

Square

£275.00

per month

Stripe

£320.00

per month

Your Potential Savings

£111.00/mo

£1332.00 per year

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