Internet Merchant Account

[oz420]

Hi all
So I want to take credit card payments, seems that in addition to a payment gateway you need an Internet Merchant Account. Could you please answer the following?
Is this some kind of bank account?
What are the requirements to get one?
What are the costs?
Are there any pay as you go options without any upfront payment or monthly and just transaction fees?
Do you have to lock into a contract?

Thanks

 

[Silk Media]

It's effectively a bank account so you need to go through the same steps as opening a bank account (ID, Credit Check etc). I think Elavon specialise in merchant accounts, or you can get one through the bank who holds your current account (although from experience the fees are much higher)

 

[Silk Media]

PS. I think most charge a monthly rate plus a percentage of transactions. This is how ours works anyway...

 

[PayPoint net]

Hi all
So I want to take credit card payments, seems that in addition to a payment gateway you need an Internet Merchant Account. Could you please answer the following?
Is this some kind of bank account?
What are the requirements to get one?
What are the costs?
Are there any pay as you go options without any upfront payment or monthly and just transaction fees?
Do you have to lock into a contract?

Thanks

Is this some kind of bank account?
Refer to explanation here - http://www.paypoint.net/ideas/merchant-accounts/business-and-merchant-accounts-explained/

Internet Merchant Account requirements:

the nature and location of your business will be taken into consideration when applying for a merchant account.

As the bank will essentially take on the risk of your business there is generally a risk & compliance process that merchants need to undertake. Some of the documentation that you will need to provide includes:

• Detailed business plan
• Live website
• Description of your product/services
• Suppliers’ details
• Delivery process
• Online terms and conditions
• Expected revenue, transaction levels, order value, and number of credit card transactions
• Secure server details
• Business accounts
• Current bank details
• Trading history (if applicable)
• Details of business owners and/or partners

What are the costs?
These are general costs however they will differ for each supplier:

• Generally a monthly service charge for the payment gateway although you should be able to get a number of transactions for free. After this you would pay an agreed pence per transaction charge
• An acquiring charge for your merchant account (anything between 1-4% - dependent on your business model)

Try either PaymentBrain.co.uk (they offer a payment comparison site so you will get an idea of the costs for your specific requirements). They feature a number of payment providers and options so I would suggest they are a good starting place.

Are there any pay as you go options without any upfront payment or monthly and just transaction fees?

Do you have to lock into a contract?
it depends on the supplier, some will have a rolling contract, some a 12 month contract and some a longer period.

Shout out if you have any questions
Siobhan

 

[Nochexman]

So I want to take credit card payments, seems that in addition to a payment gateway you need an Internet Merchant Account. Could you please answer the following?
Is this some kind of bank account?
What are the requirements to get one?
What are the costs?
Are there any pay as you go options without any upfront payment or monthly and just transaction fees?
Do you have to lock into a contract?

Hello oz420.

If you are new to taking credit card payments online, then you might be better opting for an internet merchant account that includes a payment gateway, such as offered by Nochex or PayPal.

You won't have to jump through quite so many hoops when you apply; there are no fixed recurring charges (with Nochex) - it is pay-as-you-go 2.9% + 20p; this month there is a free set-up offer; we don't charge extra for PCI or 3D Secure; and there is no fixed contract - so you can learn how the whole thing works and then if you think you can do better elsewhere you can move along when you want to.

I hope this is of help to you.

Good luck,
- Peter