Looking for a UK online payment solution that only takes a percentage or a flat fee


I'm currently looking for an online payment solution for a business website I'm working on and it turns out it's a bit more complex than I'd first though.

I'd like to run at a very small download fee that we keep and the rest goes to the user but I can't find a merchant account that will work with this as they all charge a flat transaction fee AND keep a percentage of the sale for themselves.

Does anyone know of any that just take a percentage OR a flat fee or am I going to have to rethink my business model?

We're UK based.

Ecommerce Payments UK Merchant Account

asked Feb 9 '12 at 01:15
Space Beers
168 points
  • Downloading digital content such as music or software? What do you mean by "the rest goes to the user"? – Dan 12 years ago
  • Content type isn't really relevant. The basis is that the user gets all the sale proceeds apart from a small fee which we'd keep. This won't work if our small per download profit is eaten by transaction charges. – Space Beers 12 years ago

7 Answers


As far as I know all payment processors/gateways apply both a transaction fee plus a percentage. I hate it, but PayPal seems to have the lowest rates and doesn't require a merchant account with a bank.

answered Feb 9 '12 at 02:47
655 points
  • There's the US service Dwolla which sounds promising but isn't international yet. – Space Beers 12 years ago


Depending on your anticipated transaction volume, and whether or not you can use a merchant account, SagePay Go might be an option.

For accounts with less then 1000 transactions per month they charge a single monthly fee of £20.00...there are no fees charged on a per-transaction basis

The only thing is they do require that you have an Internet Merchant Account.

answered Feb 10 '12 at 02:25
111 points
  • Is it really only 10p per transaction over 1000 a month? No hidden percentages etc or do they come from the Merchant account? – Space Beers 12 years ago
  • Yep that's right, there aren't any hidden charges at all. I imagine there's a cost associated with the merchant account but it wouldn't be too hard to compare those rates to other payment processors and make sure Sagepay comes in cheapest. We have dozens of clients using this service and every one of them has said it's worked out much cheaper for them then what they were using previously (usually Paypal/Barclaycard ePDQ). – Clive 12 years ago
  • It's 2.5% or 40p for merchant services. I need Dwolla to go international. $0.25 per transaction flat. No merchant account fee, no percentages, nothing. – Space Beers 12 years ago
  • Amen to that. Unfortunately they've said "We do not have plans to expand internationally at this time" in [this post from a couple of weeks ago](http://help.dwolla.com/customer/portal/articles/282692-can-i-use-dwolla-outside-of-the-us-) :/ – Clive 12 years ago
  • Bleugh. They Tweeted me yesterday saying "We're definitely looking to go international, but we gotta do it right and that takes time. We're hurrying!" – Space Beers 12 years ago


I'm not really in a position to need this setting up yet but as things stand I think I'm going to use Go Cardless for payments if Dwolla isn't international by the time my site's ready. I'm building it myself in my spare time (web developer by trade) so it might be a while anyway.

Go Cardless are UK based and charge 1% up to £2.00 max per transaction with no other charges.

Dwolla are US based and charge $0.25 per transaction with no other charges.

answered Feb 14 '12 at 03:07
Space Beers
168 points
  • Any reason for the downvote? – Space Beers 12 years ago
  • If it's just payments to content providers, you could see some of the answers to this question: http://answers.onstartups.com/q/36723/5259Gary Rowe 11 years ago


I don't see how gocardless can possibly fend off chargebacks so although clients may pay through gocardless, they are not present so can contest and easily get a chargeback leaving you out of pocket.

I'd love to see if this is true or not, I can't see how the exposure can be managed

answered Sep 28 '12 at 11:18
1 point
  • This is a comment not an answer. – Karlson 11 years ago


check out : https://stripe.com/ its a payment solution for devs...and paypal killer.

answered Feb 9 '12 at 04:30
31 points
  • Stripe is currently US only. The OP is located in the UK. – Zuly Gonzalez 12 years ago


I work for Nochex, which is a UK company based in Yorkshire.

We provide merchant account + payment gateway in one bundle with one charge. We charge 2.9% + 20p per transaction. We don't charge recurring monthly or annual fees. For a Merchant account we charge a £50 set-up fee (Seller accounts which only accept payments from UK cards are free to set-up). this looks like a good match for your needs.

Find more details at www.nochex.com

Good luck, Peter

answered Feb 14 '12 at 21:53
11 points


If you use PayPal express, only the percentage fee applies. Your customers do not have to have a PayPal account either, credit cards will be accepted.

answered Feb 10 '12 at 07:19
Bomb Defused
227 points

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