Advice / clarification wanted

[WhyDoesItRainOnMe]

Hi guys I need some advice / clarification and hope you can help.
I'm setting up an online business with a close friend of mine. I can't go into too much detail but basically we wont be selling a product but rather a service. Customers will have to become members and pay a monthly subscription. At the moment the website is being done professionally by a company and we intend to have it up and ready by the end of February or the beginning of March.
My question relates to the online payment system. I've done some research and understand we'll need to have the following:

Payment gateway
Merchant account
Business account

I also understand that each of these will cost us to have. I've looked at most of the high street banks and it seems RBS seem to be the best option. Barclays were no help whatsoever and HSBC charge a huge amount to set up the merchant account / payment gateway. I've also looked into Nochex who seem to be quite good and feel RBS Worldpay or Nochex might be our best option.

The costs involved are:

RBS Worldpay:
Merchant account included
£15 a month
3.35% per transaction + 15p per transaction
Set-up fee £75
Recurring payments - GBP 100.00 one off setup fee.

Nochex:
Merchant account included
No monthly fee
Typical per transaction 2.9% + 20p
Set up fee £50
Recurring payments - Not supported(?)


Any advice as we will need recurring payments as the site will be subscription based e.g £9.99 per month.
The other reason I liked these two was that both the payment gateway and merchant account are set-up together so it keeps thing easier and hopefully a bit cheaper. What has been your experience? I'm particularly concerned as I don't want to have some obsecure company handle the payments as the customers wont feel at ease giving their details to someone they've never heard of.

My other question is what to do about the business account. I understand I need one so that I may transfer monies from the merchant account to the business account. Again, it seems this will cost so what are my best options? RBS do 2 years 'free' banking, is that any good?

Any advice or help would be much appreciated!

[alanc]

Barclays were no help whatsoever
Are you talking about Barclays Bank or Barclays Merchant Services? You need BMS for a merchant account.


Nochex:
Merchant account included
No monthly fee
Typical per transaction 2.9% + 20p
Set up fee £50
Recurring payments - Not supported(?)

Obviously, this is not an option as you need recurring payments.

Two years free business banking is a pretty good offer. Alliance & Leicester to a good-value business account. Co-op do free business banking for FSB members.

[PayPoint net]

Hi there

I would shop around for your internet merchant account. Factors that affect the success of your internet merchant account application and the acquiring rate you will be offered include your business model and any trading history that you have.

It is worthwhile speaking to payment gateway providers about your internet merchant account as we have relationships with various banks that we may be able to leverage to secure a more favourable rate for you.

Without knowing your business model, assuming we can support it, we can offer you a sub 3% acquiring rate on an internet merchant account to go with our payment gateway. Feel free to PM over your contact details if you’d like us to give you a call to talk through your options with us.

In case you’re unfamiliar with the requirements of an internet merchant account application process, you might find this guide (http://www.paypoint.net/solutions/complete-solution-process?utm_source=forums&utm_medium=forums&utm_campaign=forums) to what happens after you sign up useful.

Whoever you end up with, the very best of luck with your business!

Rory

[WhyDoesItRainOnMe]

Are you talking about Barclays Bank or Barclays Merchant Services? You need BMS for a merchant account.

Barclays merchant services. The guy on the line was just trying to get rid of me asap.



Two years free business banking is a pretty good offer. Alliance & Leicester to a good-value business account. Co-op do free business banking for FSB members.

Might look into A&L, I don't see the point of paying for the FSB to get free co-op business banking as it will cost the same if I do it elsewhere.

[WhyDoesItRainOnMe]

Thanks Rory, I'll discuss with my friend and possibly get back to you.

[alanc]

Might look into A&L, I don't see the point of paying for the FSB to get free co-op business banking as it will cost the same if I do it elsewhere.
I just had the A&L leaflet land on the mat again. It's free banking and a small percentage interest on funds in credit.

[dunerider]

I've used RBS Worldpay for many years, its a good service. Very convenient if you are a start up without a merchant acct.

I also bank with NatWest, although i didnt when i went for WP in the early days.

As a service they have both served me well.

The only thing worth mentioning is the fees are probably abit more if you use WP and merchant combined. And ask what their retention period will be.

As a start up you will probably find you have little choice who you can process card with as the stumbling block will be finding a merchant.

To the best of my knowledge the following allow you to process cards without a separate merchant
Worldpay
Paypal
Google checkout
netbanx