Choosing a Bank Account

[degenerationx]

Hi everyone,

Im currently in the process of choosing a business bank account for my new franchise start up. All the bank seem to offer a limited amount of free banking. One question is does anyone know when the free banking starts from? The minute you start trading or the minute the account is opened?

In my research Santander does a business direct account, which appears to offer free direct debits when a card payment is made? The majority of my business will be in the form of card payments but I was wondering if anyone could offer any advice.

Ive been told by the company that you should try negotiating with the banks but im a complete novice to this. Does this actually work when you have their banking offers in black and white?

Any help would be greatly appreciated

Dan

 

[StevensOnln1]

You will need a merchant account to take card payments, as well as a bank account. You seems to have mixed up card processing with direct debit, they are nothing to do with each other. If most of the payments in/out of the account will be electronic (e.g. BACS/faster payment, standing order, direct debit, debit card, etc) rather than cash/cheques then I would suggest looking at HSBC's Business Direct account.

 

[degenerationx]

I think I have got things confused!!

In that case I'm going to ask a stupid question. If a customer pays by card, be it debit or credit then obviously you will pay the company that processes the electronic payment. Do you also pay the bank for receiving that same money?

 

[StevensOnln1]

The merchant account provider would send the money to you via BACS so it would depend if your chosen bank charges for receiving BACS payments.

 

[TotallySport]

if you take card payments in a shop you will have a terminal which you pay a monthly fee for and you have a merchant account which you get charged per transaction and the money lands in your account with no other charges bank wise.

If you have an online sale you may also pay a fee to a gateway which could be a monthly fee upto a certain number of transaction then a fee per transaction after a certain amount.

I would have recommended the FSB's free banking with the co-op, but the current co-op situation might not be a good idea.

Free banking starts from the moment you open the account, and banks hate offering it.

 

[AnotherBill]

When I researhed a few months ago, HSBC, like the others. still offered free banking or startups.

Unlike the others however, it is my understaning that HSBC Business Current Account for small businesses remains free long term, providing you stay within transaction limits and turnover below £500k. Read the small print, you may need strong spectacles, but maybe a good deal for some.

 

[degenerationx]

if you take card payments in a shop you will have a terminal which you pay a monthly fee for and you have a merchant account which you get charged per transaction and the money lands in your account with no other charges bank wise.

If you have an online sale you may also pay a fee to a gateway which could be a monthly fee upto a certain number of transaction then a fee per transaction after a certain amount.

I would have recommended the FSB's free banking with the co-op, but the current co-op situation might not be a good idea.

Free banking starts from the moment you open the account, and banks hate offering it.

When you say Merchant account do you mean for example if I have a Streamline account ill pay per transaction, to them? However I won't pay anything else from my own business account to receive the money?

 

[StevensOnln1]

You would pay Streamline for processing the card payments. The only charges from your bank relating to this would be if they charge for receiving BACS payments.

 

[MyAccountantOnline]

Hi everyone,

Im currently in the process of choosing a business bank account for my new franchise start up. All the bank seem to offer a limited amount of free banking. One question is does anyone know when the free banking starts from? The minute you start trading or the minute the account is opened?

Hi Dan I think it'll be when the account is opened.

Ive been told by the company that you should try negotiating with the banks but im a complete novice to this. Does this actually work when you have their banking offers in black and white?

Good luck with that one. I think you'll be politely told standard terms apply unless you have a substantial business/bank balance.

 

[TotallySport]

When you say Merchant account do you mean for example if I have a Streamline account ill pay per transaction, to them?

yes.

However I won't pay anything else from my own business account to receive the money?

It depends on how your taking the payment and how you set it up to take the payment, but it won't be your bank that charges you.