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New service could save businesses thousands in online transaction fees

September 6, 2012

Two innovative accounting systems have joined forces to enable freelancers and other small businesses to be paid online, without incurring the punitive fees associated with the major card providers.

FreeAgent, a UK-based company, provides one of the leading online accountancy systems. The software enables you to keep track of all aspects of your accounting and tax affairs, and is easily integrated into accountant’s back-end systems.

Now, the firm has teamed up with GoCardless, an online payment provider, to allow payments to be made directly through FreeAgent, without the need to pay a massive proportion of the invoice value in fees.

Unlike other systems, small businesses will not have to set up a dedicated ‘merchant account’ to handle transactions from their customers, as the GoCardless system enables its users to take direct debit payments from customer’s bank accounts.

The savings are impressive. While you would expect to be charged 2.5% of the transaction value by a major card processing company, GoCardless charge a mere 1% of the transaction value – and the total charge is capped at £2.

Demonstrating how rapidly online technology has developed in recent years, Roan Lavery (Product Director at FreeAgent) said that the demand for a client payment portal was one of the most frequently requested features the company had ever had.