How to open a business account for pay comapny

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starricz

Free Member
Mar 23, 2019
8
1
  • #1
    Hi all.

    Does anyone know how you would open a business bank account for a payment processing company? We wish to provide a daily pay service to freelancers and uber drivers, this would require us to make hundreds/thousands of transactions on a daily basis however, the banks keep denying us.

    How do other companies get away with it and bypass the banks rules. There are tons of companies that manage clients funds and the banks give them an account.

    Any understanding on this subject would be greatly appreciated as I cant seem to find anything helpful online.
     
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    WaveJumper

    WaveJumper

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    • Business Listing
    Aug 26, 2013
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  • #4
    Have just seen your posts in accounting. Does seem strange if you have a history of trading with I assume business account already in place. I know with all the money laundering worries flying around banks can be a pain in the butt however you would of thought there must be a way forward, have you tried through your accountants / solicitors.
     
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    starricz

    Free Member
    Mar 23, 2019
    8
    1
  • #5
    Haven't checked in with solicitors however, this wasn't something that my accountant was able to help with. Just very strange, banks don't really give us answers. But other companies continue trading and new companies of this sort are opening everyday. I really don't know how they get around it all as it's been a complete pain in the a** for us!
     
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    Maxwell83

    Free Member
    • Aug 4, 2012
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  • #6
    It's possible that some of these other companies are simply using a standard business account, with no 'client money' account?

    If you want a proper client money account, check out the HSBC eligibility criteria:

    https://www.business.hsbc.uk/en-gb/everyday-banking/business-savings/client-deposit-account

    Eligibility:
    Account eligibility is limited to the following businesses:
    Credit and Financial Institutions which have permission to hold client money from the FCA (Financial Conduct Authority)
    Auditors, insolvency practitioners, external accountants, tax advisers, notaries, conveyancers or independent legal professionals that are regulated by a designated professional body
    Real Estate businesses, estate agents, property managers, or loss adjusters that are regulated by specific bodies and attest to a number of requirements
    Local Authorities for example county councils, unitary authorities in shire areas, London boroughs and metropolitan boroughs

    Maybe the FCA permission is the key.
     
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