What You Will Discover:
A comprehensive payment processing fees comparison for accounting firms reveals that practices are losing thousands of pounds annually to unnecessary transaction costs. With Finexer’s Open Banking API, forward-thinking firms are cutting these costs by up to 90%.
Picture this: It’s January, and your accounting practice is processing hundreds of tax season payments. As you review last year’s figures, something catches your eye – the steadily mounting payment processing fees. For many UK accounting firms, these fees have become an accepted cost of doing business. But with modern Open Banking solutions like Finexer’s payment API, they don’t have to be.
📚 Open banking for accountants
The Hidden Cost Centre in Your Accounting Practice
Sarah, a partner at a mid-sized London accounting firm, recently discovered her practice was spending over £45,000 annually on payment processing fees alone. After switching to Finexer’s Open Banking payment solution, her practice now saves over £40,000 annually. “We were so focused on serving clients that we didn’t realise how much these transaction fees were impacting our bottom line,” she admits. “Open banking solution transformed our payment processing from a cost centre into a competitive advantage.”
Current Payment Processing Reality
The complexity of payment processing in accounting practices extends far beyond simple transactions. Modern firms must juggle peak season payment surges while managing multiple payment methods across various platforms. The reconciliation process has become increasingly complex, especially when handling international client payments and regular subscription billing. Yet perhaps the most concerning aspect is that most firms don’t realise they’re paying far more than necessary for these essential services.
Breaking Down Your Processing Costs
When comparing payment processing fees for accounting firms, we find that traditional card processing fees typically start at 1.5-3% per payment. This base rate is just the beginning. Monthly statement fees typically range from £15-25, while terminal and gateway fees add another £20-40 monthly to your overhead. Factor in chargeback handling at £15-30 per incident and currency conversion fees, adding an extra 1-2% for international clients, and the costs become substantial.
In contrast, Finexer’s Open Banking API offers a transparent fee structure of just 0.3%, with no hidden charges. For a practice processing £2 million in client payments annually, this difference could mean reducing processing costs from £40,000-60,000 to just £6,000 per year – enough to hire an additional team member or invest in practice-growing initiatives.
Why Accounting Firms Need a Different Approach
The modern accounting landscape demands more sophisticated payment solutions. Today’s practices require seamless integration with their management software, coupled with real-time payment visibility. Finexer’s API meets these needs by providing instant bank-to-bank transfers, automated reconciliation, and enhanced security measures while maintaining cost-effectiveness.
Current Pain Points Solved
Traditional payment processing typically consumes 5-8 hours weekly on reconciliation alone. Finexer’s automated system reduces this to less than an hour, with real-time payment tracking, instant confirmations, and automated reconciliation across all major accounting software platforms. The financial impact extends beyond direct processing fees, as Finexer eliminates unpredictable charges and cash flow delays through instant settlement.
📚 Learn more about Finexer’s PayByBank Feature
Open Banking for Accounting Firms
A thorough comparison of payment processing fees for accounting firms reveals that open banking, particularly through providers like Finexer, is revolutionising how practices handle payments. Finexer’s API enables direct bank-to-bank transfers with instant payment confirmation and automated reconciliation while cutting processing fees by up to 90%.
The Numbers That Matter
Let’s compare the costs for a typical accounting practice:
Traditional Processing vs. Finexer’s Solution (Annual Costs)
Based on an average of 6 hours weekly at £40/hour with traditional methods, reduced to 1 hour with Finexer’s automated reconciliation system
Real Savings Example
For a practice processing £2M annually:
- Traditional Processing: £50,000 (fees + operational costs)
- Finexer Open Banking: £6,800
- Annual Savings: £43,200
*The above example is an ideal example. However, charges may vary depending on payment frequency
Practice Benefits Beyond Cost Savings
Finexer’s Open Banking API delivers advantages beyond direct cost savings. Practices using Finexer report a 90% reduction in reconciliation time through automated payment matching and real-time transaction visibility. A simplified payment process and instant payment confirmation improve the client experience significantly.
Strategic Advantages for Your Practice
Modern payment solutions create a distinct competitive edge. Finexer’s lower processing costs enable more competitive fee structures, while their advanced API attracts tech-savvy clients and enhances your practice’s reputation. The significant savings can be reinvested in practice development, allowing you to scale payment processing without proportionally scaling costs.
Future-Proofing Your Practice
Recent data shows that accounting firms using Open Banking solutions achieve remarkable results:
- 90% reduction in processing costs
- 85% improvement in reconciliation efficiency
- 95% decrease in payment-related queries
One practice owner notes: “Switching to Open Banking payments was transformative. The savings alone paid for our new practice management software, and the automated reconciliation has freed up our team to focus on value-added services.”
📚 Compare the Top 3 Open banking providers in UK
Making the Switch
Understanding your potential savings is the first step to reducing payment processing costs. Finexer’s expert team is available to discuss your needs and demonstrate how their Open Banking API could benefit your firm.
Want to learn more about reducing your practice’s payment processing fees? Contact Finexer today for a free cost analysis and consultation.
Don’t miss out on the opportunity to revolutionise your accounting workflow and save money on every transaction. We are here to help! Book a demo now 🙂