Merchant Accounts/Credit Cards - Advice Please.

[jconsta6]

Hi all,

I'm currently in the process of setting up an internet business which will require me to take credit cards.

Does anyone on here have any experience of suppliers of these services?

I've done some research and they all seem to be offereing slightly different services for similar prices, but wondered if anyone has a preference at all?

IS there anything I should be looking out for?

Cheers,

JC

[arcturus]

One thing to watch out for is the 'Settlement Period' that they impose on you. This is the time between you doing the transaction and you receiving your money.

For one business I was helping to set up, WorldPay wanted to impose an 8 week settlement period. We told them this was unacceptable but they wouldn't budge. In the end we got 30 days from Barclaycard Merchant Services so we went with them.

Most businesses will get away with a 2 to 5 day settlement period, but others get stitched right up. For example my own business is on 30 days (computer and IT business) whereas a mates business is on 2 days (industrial power tools). Having said that, my terms will be reviewed after 12 months.

>> Edited by arcturus on Monday 26th January 09:49

[jconsta6]

Thanks for the reply.

So, the settlement period is the period between the purchase time for the customer and the time when the money goes into your business account? Therefore obviously the shorter the better I prresume.

I've spoken to Barclays regarding their ePDQ system, which seems to do everything I require. I'm just trying to be cautious of getting shafted, as I noticed even Barclay want 3 months notice of termination - at full rates.

Thanks

JC

[PetrolTed]

Aside from the settlement periods, the Worldpay system is excellent and reasonable value compared to the competition. It's got a good fraud alert system and relatively low entry costs.

[simpo two]

YHM

[samn01]

I looked at this a while ago and www.protx.com/ seemed to be by far the cheapest system and preferred by many to ePDQ, it can be used with a barclays account although they will try and sell you ePDQ if they can.

Sam

[jconsta6]

Thanks all for the advice, I'll carry on looking into the various options you've suggested.

Cheersm

John.

[stevieb]

samn01 said:

I looked at this a while ago and www.protx.com/ seemed to be by far the cheapest system and preferred by many to ePDQ, it can be used with a barclays account although they will try and sell you ePDQ if they can. Sam

I can also backup this system, I hav recently setup a internet shop and am using it currently. The settlement period can be got around if you offer free delivery.

Away i have got around this problem to aid cash flow is to offer free delivery. I offer free delivery usually between 7 to 10 days.. This allows the money to come intothe business account and order there goods (if they are not stock items) then still get them delivered within 7 days.

If you need any assistance give me a mail i will relay the information i have learnt over the past months from the PH Collective

Steve

[singlecoil]

You should check out the service provided by Adelante, authorising is done through your mobile phone as a text message, so no need for a dedicated terminal. www.adelante.co.uk
They can set you up with a merchant account with the Bank of Ireland if you wish. I have an account with them though I've never used it, basically because I'm lucky and don't need it (avoids losing the 2%+ commission) and because I take stage payments (not allowed by CC firms, got to be all one transaction

[david beer]

I have just enquired through Nat west, the "Streamline" rates for me are 3days into bank, £19.95 per month and £200 set up fee, 2.15% on credit and 43p for Debit. Amex is a little higher at 2.95% and five days into bank.I always use my Amex so i will probably take the option. How does this fare up, i would be interested.

[stevieb]

to expensive....

i pay 20 month and no commision fee

[david beer]

Wow, i will have to investigate more, just need the time to do it, what is the point of having a business manager at the bank? Thanks for the tip.

[tvradict]

PetrolTed said:

Aside from the settlement periods, the Worldpay system is excellent and reasonable value compared to the competition. It's got a good fraud alert system and relatively low entry costs.

Ted, not meaning to delve to deeply into the realms of your business here, but does that mean the money that was taken from my Debit card after christmas for my order, won't get to you until the end of february?!

[PetrolTed]

I do suffer from a several week delay.

Now that I'm up and running that's not a problem.

The other systems do sound attractive but I'm not sure I could go through the pain of switching systems.

[kanes]

Worldpay are pretty good, as stated the settlement period is a PITA but after a few months you can convince them to drop it. Sure yourself by refusing orders from 'odd' foreign countries too and double check any orders that seem out of place.

[rev-erend]

One word of advice I would give - is that the companies like Barclays are very much on the side of the customer (and not you..).

For instance.

Some one in Singapore obtains a stolen UK credit card . . orders £500 of goods from you .. you send then .. as money is banked by you.

Owner reports theft.

Bank refund money.

You now don't have the money or the goods and have probably paid for the goods too.

Check out how they handle this situation.

One of two of these can really hurt.

And yes it happened to me !

[regmolehusband]

I use HSBC e-payment system. £20 a month and 2-3 days settlement.

Don't forget you'll also need some "shopping cart software" that will pass your customer's shopping list onto the bank for the card transaction.

If you only want a simple shop and don't want to pay too much upfront for software that is too complicated for your needs then you can consider one of the Application Service Providers that links to your website. They can either do the whole cart for you or you just link to their website via "add to basket" links on your website.

I only have four items to sell so I've gone with RomanCart which is free apart from £40 per annum if you want them to interface with your bank or Worldpay etc. If you just want your customer to be able to pay by cheque or send you the card details for entering into the PDQ machine then it's totally free.