Merchant Account

[graham1961]

I am in the process of acquiring a small on line business £40,000 a year turnover, clothing. I am coming up against barriers when I apply for an internet merchant account because I do not yet own the business or the website and will not do so until completion on 15th January. Some have advised me to wait until then to apply (!) yet another told me to say I own the business already - "that part of the application form is rarely looked at" (!) Abbey my business bank are unable to help since they outsource cards. Surely others have encountered such problems and overcome them? Thanks Graham

[MAUK]

Paypal !

You do not need a Merchant Account, but they may ask your 'new' business details and they will need to verify your business exist.

You can use your personal credit card and account for starters and then change it after you get the shop!

Check at Paypal and see the options and FAQ, ask them if you do not find a answer - I suggest you to Phone them for a quick reply and help.

[deniser]

Presumably you are just buying the assets of the business, not a legal entity such as a limited company?

[gibby]

In effect you are starting a new business as the card firms would see it.
You application would be based on your credit history but I agree they would also look at your trading history, which you may have non.

the easy option is to start with paypal or goodle checkout although its not ideal. Once you have been trading for sometime they will look at your history.

Some firms are easier than others to get proper card payment accounts.
No chex were really easy as were World pay aslong as they could hold onto your money for 4 weeks & keep a deposit for security

You could also try streamline for advice as we found them really good for help. Its also cheaper if you have a FSB membership to avoid the start up costs & get better rates.

Im sure lloyds arn't too difficult but they want really high rates too

it depends on so many things

G

[graham1961]

yes just the goodwill really. Looks like Lloyds might play ball but at very high rates. Barclays are also thinking about it. Thanks.

[IridiumCorp]

Graham,

Technically you cannot apply for credit for another legal entity, ie I could not apply for credit for you and visa versa. As a IMA application is basically a credit application there is not much you can do until you own the business.

Drop me a line when you do own the company and we will get you through the process as quickly as possible.

[realex_jonathan]

You will need to apply for your own merchant account and yes, the banks will probably insist that the assets are fully yours before issuing the Merchant I D, but there's some preliminary work that you can carry out in the meantime. You can have the necessary forms completed and have carried out a bit of window shopping to see who will give you the best rate for you business. If you'd like to discuss this at all feel free to PM me, helping merchants out with MIDs is a big part of what we do here

[wizzard]

Bear in mind Paypal do have a set limit on how much you can put through your account before they stop you using it and ask for documentation, all in the name of anti-money laundering legislation.