FSB + Streamline or HSBC Merchant account

websnail · Apr 9, 2009

I'm in a bit of a quandry and it's probably not going to make a huge amount of sense once I've written it all out but here's the situation.

I'm with HSBC and have been since around 1998, business account, house, personal, etc... all in the same place... Decided to apply for a merchant account for use with ProTX on my ecommerce site so I can have a "proper" credit card payments system instead of just Paypal and Nochex which has turned a few folks off.

Anyway... got the quote back...
£150 setup fee
3.0% on CC's
30p on UK Debit cards
1.0% more for Amex

Now, from a simplicity point of view I'd like to stick with what I know and possibly have a bit more leverage as a long established customer... but the FSB offer with Streamline appeal except I'm not sure how compatible it'd be with an HSBC business account.

The whole legal thing from FSB appeals too as I need to sort out a few things for selling to resellers, etc...

I could use a little feedback as my gut is telling me one thing, my heart another and the brain is now refusing to discuss it further without consultation...

mke · Apr 9, 2009

Lol. Yes, I know the thought processes only too well.

First thing, a bank is a bank and don't trust all you have with any one of them. If anything, and I do mean anything, goes wrong, the one which is in control can seriously cripple you and even put you out of business. Captain Mannering retired some years ago and the whole thing is now run by mindless, inhuman, beancounter implemented systems. No matter how nice the local staff, they have no discretion. They have no loyalty to you, that is not within their gift. Their long suffering customer, you, is there for centrally defined purposes only.

Do yourself a big favour and return the sentiment. bank with one for business, sadly you can only legally have one banker for a limited company, but make damned sure you pay yourself into another.

On your direct question, your bank account doesn't give a damn whether the money deposited comes from their own merchant account provider or anyone else's. Go for the one which is best for you. The FSB deal is a good one. If that's the best currently on offer, go for it. It is compatible with every business account on the market. As is Barclay's merchant, HSBC merchant, Worldpay and every other UK compliant.

||MARK|| · Apr 9, 2009

If you go down the ProTX - HSBC route you may be able to adjust their quote a bit. I use them too, however signed up before the recession.
Try and get them to waive the set-up fee, they've done it in the past.
Again you will be able to negotiate the cc/dc's charges too.

AndyP · Apr 9, 2009

I think mke has said it all perfectly - in my opinion the FSB route is the way to go.

RoseRover · Apr 9, 2009

I'm mid way through applying for streamline through FSB and I bank with Barclays - it makes no odds whatsoever.

Rose

mke · Apr 9, 2009

Just one thing I'd add. Take a separate merchant account and payment gateway. Streamline, HSBC, Barclays all have horrific transaction costs if you use their payment gateways. Also, their code interfaces (APIs) can be a swine to configure for whoever is putting yuor site together. Almost every techie on the planet is familiar with the ProtX interface - wot me? exaggerate? Well, maybe just a bit.

Barefaced, cheeky, double self-plug, this is a link to where there is a ProtX link.

websnail · Apr 9, 2009

Thanks for the input guys... I think I may join the FSB anyway but drop the HSBC a call and point out that I'm getting a really good offer there and I'm giving them first refusal to match it or come close...

Paper work arrived for the HSBC stuff yesterday but it's not signed so there's plenty of wiggle room..

As for Pro TX... Believe me I know all about that nugget.. That's my plan anyway as they have a much better rep and better integration so it's not wasted info, more reinforces my decision.

Thanks again...

websnail · Apr 9, 2009

Just to repeat my thanks for your input folks..

I spoke to FSB and have the rep coming to see me in a couple of weeks but in the mean time they've put me in touch with Streamline and I've gotten the rates I needed. Only fly in the ointment is the timing of Easter for contracts to get delivered but minor issue...

Glad I put this out for thoughts as it's doubtless one of the better decisions I've made

Cheers...

Apr 9, 2009

We use FSB - Streamline - Protx for www.musicbugstoyshop.co.uk and it works well for us.

Have been with he FSB for years, their online banking interface is slightly 'basic' but it does the job!

Hope this helps, one word of advice though. Pretend that you have another appointment after your meeting with the FSB rep. Ours outstayed his welcome and seemed very content to remain on our comfy sofa for the afternoon. I didn't think he would ever leave

websnail · Apr 9, 2009

Claire B said:
Hope this helps, one word of advice though. Pretend that you have another appointment after your meeting with the FSB rep. Ours outstayed his welcome and seemed very content to remain on our comfy sofa for the afternoon. I didn't think he would ever leave

LOL... Thanks Claire... The rep is coming when things are going to be quite busy so I'll be asking a few questions and then looking meaningfully at my watch as time is a real premium nowadays.

I'm sticking with HSBC for my main business account though... No problems with the whole process and the positively gleeful Streamline rep was almost too happy.

paretowasright · Apr 10, 2009

Just a question on this.
Do Protx and some of the others want to see a minimum trading period before they alllow a business to sign up and does that also apply to the merchant account?
I realise it may also depend on the risk profile of the product involved with regards to deposits/fees etc.

mke · Apr 10, 2009

The merchant account providers want to see a track record. ProtX is NOT a merchant account provider. It is a payment gateway. It will accept whichever account provider you tell it to, including Paypal Posh or whatever it's called.

paretowasright · Apr 10, 2009

OK thanks Mke appreciate your response ...so its the Banks that want the track record.
A bit of a chicken and egg situation then!
I assume for a new site (I am just building a cosmetics site) one would need to use Paypal Pro or/and Google checkout initially then apply for a merchant account 1 year down the line once a track record is established?

mke · Apr 10, 2009

In essence yes. But if you have a good relationship with your bank and have been with them for a long time, or a member of the FSB so have a good way in to Streamline, it is at least worth raising the question with them. It costs you nothing and the worst they can do is say no, come back next year.

paretowasright · Apr 10, 2009

Thanks again Mke.
I will read up on some previous postings on this subject as I think there may be a solution in between for the first year aside of paypal pro and google checkout. Will definitely join the FSB as the various benefits are well worth the membership and may be a way into streamline before 1 years trading.

mke · Apr 10, 2009

The FSB is definitely a good idea. But where does this idea of a year come from? If you can show a good track record is the key. Past record elsewhere, relationship with your bank, that's now. Do well in the first few months and show you're handling it wisely, that's less than. If it takes three years to get started properly, that's more than. It is not a fixed period.

Also, there is no "in between" G and PP. There are similar facilities, i.e. merchant account and gateway in one with no track record or credit checks or whatever. Or there are full blown merchant accounts.

paretowasright · Apr 10, 2009

uk1host said:
The Banks may want you to have been in business longer then a year in the current climate. We did find Protx easy to install for our solution and Worldpay not so easy, if you try to ring any of there techies they will give you the run around and I know this from experience.

I forgot about Google Checkout and never really used it so cannot comment on what it is like. But like mke said if you looking for free setup and just to test the water then Google and Paypal may be your option.

Cheers
Dave

Mke-it was from this posting by uk1host earlier today.

mke · Apr 10, 2009

I too have seen it quoted in many places. it is at best a rough rule of thumb. If they want to see accounts, as many do, by the time you get your first set published it is eighteen months to two years, even though the expression actually refers to one year's accounts, not one year's trading.

Most people serious about their business draw up management accounts on a regular basis because it helps them plan. It also helps them persuade their bank to lend them money.

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