HSBC Business Direct Account - Debit Card?

[derelyth]

Hi all,

Slowly getting my company off the ground and have got set up with the above account. I got the Internet Banking details through the post and acitvated yesterday, and got my Paying-in and Cheque books today.

One thing I haven't seen mentioned is a Debit Card for the account. Will I get one? Or do I need to apply for one?

I make Business related purchases online (IT Repair so buying of components for Customer machines etc) and so a Debit Card (if not a Credit Card, but I'm going to leave that until I am in a better need for it) would be useful.

I have haerd some say it will come through in 10 days (10 days from when?!) and others say you have to apply but you still might not get one - why?! It isn't as though this is a Credit Card.

Input is welcome and appreciated

Thanks,

Karl

EDIT: I did aattempt to search but I'm getting a "Zero Reply Error" from the Squid Proxy server at the moment.

 

[KM-Tiger]

From memory I think I applied for the Debit Card online, somewhere in the BIB interface, and yes it's useful for online purchases.

 

[Maslins]

I've quite possibly got the same account as you. An HSBC premier ninja direct account or something. I wasn't given a debit card when I set the account up, but was told after 6 months they'd assess my business and see if I warranted one.

Like you was a bit confused...wasn't asking to borrow any money, only a different way to spend my money!

Anyway, instead I use one of my personal credit cards purely for business, and got the direct debit to come from my HSBC account. Achieves what I want and they're fine with it.

 

[DotNetWebs]

...was told after 6 months they'd assess my business and see if I warranted one...

Same thing here. One came through [automatically] eventually.

Regards

Dotty

 

[gemd89]

I got mine within 7 days of opening the account within branch

Gemma

 

[derelyth]

Thanks all, it is totally confusing as to why they do it - if it was a Credit Card, I'd understand but a Debit card?! Madness!

Gemma - is your account a Business Direct account? (The primarily "Online Banking" orientated one)

 

[gekk0]

We had the same problem. Told us we couldn't have a credit card during the application process, we said no problem we don't want one we only want a debit card. They approved it then send us an e-mail to say it wasn't policy and cancelled the debit card.

I wrote a stinking letter explaining how important it was to our operations as most distributors take card payments. Without it it meant transferring money to the distributor and waiting for their accounts dept. to realise the money before shipping could occur leading up to a 3 day delay. The final point was - IT'S OUR MONEY, WE CHOOSE HOW WE SPEND IT.

The following week the card arrived.
But I think it's fair to say you should have money in the business account before they give you the card which I mentioned to them would be fair a fair indicator of our seriousness and transferred £8000 to the account the same day.

This was a two page e-mail we send but if you send something to that effect it should work out in your favour.
If they give you a hard time look at the Co-op they look like they offer the same business banking deal and with a debit card as standard...I also threatened to close HSBC account and go to them which might have tipped the scales.

Regards,

Gekk0

 

[derelyth]

Thanks for the reply gekk0, an interesting read

I am going to pop into my local branch and see what they say. I don't have the financial power to transfer £8000 to my account, but have made a start by sending £200 over, with another £60-£100 going over soon.

The final point was - IT'S OUR MONEY, WE CHOOSE HOW WE SPEND IT.

My thoughts exactly!


I have noticed most if not all of my suppliers accept paypal payments. Could I use Paypal linked to my Business account to make online purchases, and the activity to go towards the "monitoring for eligibility" that HSBC seem to want to do?

 

[gekk0]

Unfortunately I can't answer that. We will be looking into using Paypal as we've changed business direction. We initially started out in one direction but the margin isn't there so we've changed to a different product line and will be ordering from the far east. A lot of far eastern companies use Paypal. Paypal should be useful for foreign exchange and you should be covered by them for insurance. But don't quote me on that as I haven't looked into it properly yet.

I don't think Paypal transactions will have too much to do with it. I think you just need to tackle the problem head on, being a little bit forceful. If you already own credit cards and debit cards and have no CCJs then you're responsible enough to have a company debit card which was the other point I mentioned to them. Otherwise speak to the Co-op bank they have a very similar if not better system. The only difference being is limited branches but you don't really need a branch nowadays. They use the Post office for deposits and if you're taking payments online Internet Banking is the way to go.

Regards,

Gekk0

 

[derelyth]

Sorry gekk0, that query wasn't specifically aimed at you :redface:, another general question but your in-depth reply was again very useful

I already have a Student Account with Lloyds TSB which gives me a Debit and Credit Card and a £500 OD. The CC has a £750 limit. I have never not paid the CC off in full, and have only ever been into my OD once by mistake when I pressed "£100" instead of "Other Amount" at a LTSB Cash Machine - I then went in and paid the rest of the cash back in! So I would like to think my Credit Score in that respect is OK.

With regards to changing to the likes of the Co-Op, one smaller reason I chose HSBC is because a Branch is in my High Street which is a 10 minute walk away from home. The nearest Co-Op branch is near my Uni - a train journey away :redface: I have however had a look at their accounts and noticed they give a Debit Card, no-fuss!

The strangest thing I find is on HSBC's site it has a page for their CC which has an "Apply Online" link. The page for their Debit just has "Call 0845..." - surely you'd think it to be the other way round or, much more easily, a Debit card included without hassle!

 

[gekk0]

I prefer not to use the online application process but to go to the HSBC branch as the business manager actually knows your name and you can build a relationship with them. I e-mailed them a query as we are considering changing the name of the company and I got a direct e-mail reply about how that affects the company account, he also gave me more information about the process with Companies House which I didn't ask for but I appreciated the info. Also he offered to create a new account with a new start on business banking if I chose to close the company and start a new one as an alternative option.

I initially applied online for a business account, by the next day I hadn't heard back so I phoned the business online center which was toll free and they put me in touch with the local HSBC that had a business dept. and they contacted me straight away and arranged a meeting on a Saturday!!
The following Wednesday I got a call from the call centre asking if I would like to set up an account....that was in regards to my initial query. So effectively applying online took a week not two minutes!!

With regards to different banks, in my opinion you don't need to be near a branch as I mentioned to you before you can use the Post Office for cash and cheque banking with the Co-Op and the rest is done online. So if you are an online business you can always have the money transferred between your personal current and business account so why you need a local branch is beyonde me.

What kind of business are you starting as you don't have a lot of start up capital, although some business don't really need to depending on the business of course and supply arrangements?

Gekk0

 

[derelyth]

I applied online as it was my first time. I was pleasantly surprised to get a call the next morning from an english guy who talked me through the setup of the Account. Within the following two weeks I received and sent back the various forms and then got my welcome packs and cheque/PI books - but alas no form of Plastic!

My Business is in IT Consultancy and Repair/Maintenance. I started off in 2005 by doing bits here and there for friends and family. Things were slow but very welcomed from then on and a few people who I did work for said I should set up properly to aid my studying (I was taking A Level Business Studies, and now 2nd year Computer Network Management degree) and so in the last 12 months I have been slowly putting the bricks together.

It was only recently that I started getting more serious as I was approached by a neighbour's employer, and by my Mum's employer - both who own small businesses and therefore needed proper Invoices etc.

I am set up at home for larger jobs, with a dedicated workbench in my bedroom. I am however also mobile and go to client premises to assess jobs or complete them before deciding if I need to take the machine away.

Capital wise, I haven't needed much finance to start up. Most of the equipment I use was already lying around in my bedroom (oh the advantages of being a Geek!) and so it is only smaller things that I find I may need that I have had to spend out on.

 

[gekk0]

Since it's a service based business you won't need much capital, you can of course use your own debit / credit card for company purchases, expenses and claim it back from the company so for your kind of business I wouldn't be too worried. I also used to be an IT contractor, and fairly succesful but decided it's an industry that can be affected by recessions and corrections in the market. I used to work for finance groups like Deutsche bank, the last market correction after September 11th ( planes, buildings..you know!!) A lot of IT workers were put out of work and contractors suffered as well. Hence I keep my hand in but don't get involved in IT anymore. On reflection....September 11th wasn't the reason for the market correction as that was happening anyway, just using it as a time benchmark, although it did contribute to it.

The other issue is instead of learning and becoming good at a paticular trade and building on that skill you have to continously relearn and in some cases requalify to keep an IT job.....this is merely an observation to consider as there are no old people in IT that aren't at the top and if they are they are the first to go when employee numbers need to be reduced.

Regards,

Gekk0