Merchant account, payment gateway...ARRG!

[davejenni]

Hello to all,

I have read several posts and articles and am getting more confused the more I read :|! I need a little help from the masses to walk me through my questions. regarding merchant accounts, payment gateways, etc.

Like many, we are starting an internet company that will require us to take credit card payments online. What I can't wrap my head around is the 'process' and services needed so I can do this within compliance and where all of the people in the process work seamlessly.

Here we go ladies and gents...and sorry for the most basic questions:

1. Is my 'merchant account' different than the bank I do my business banking through (or can it be?). In our case HSBC....
2. We have settled on SagePay for part of this process becasue of recommendations from two of our suppliers. How do they work into the flow?
3. What is the flow of the transaction? By that I mean the customer puts in their credit card details onto my site, then blah, blah, blah...
4. At what point can we have access to the money from the transaction?

I'm sure based on your answers, I will have more to ask. Any input or direction would sure be appreciated.

The search continues.....

Many thanks!

Dave

 

[James1980]

What is the flow of the transaction? By that I mean the customer puts in their credit card details onto my site, then blah, blah, blah...

We use RBSWorldPay for one of our sites, and the flow is probably very similar:

1. The customer uses your website to order goods, choose what service they require, enter their contact details etc.

2. When the customer is ready to pay (i.e. "proceed to checkout"), your website passes them to a payment page hosted by Sagepay, and the customer enters their credit card details.

3. (optional) The software running your website receives a message from SagePay confirming whether the payment was successful, how much was taken etc. Your website might then decide to send the customer a confirmation email, perhaps, or update its internal database to reflect that payment has been made.

4. You (and the customer) receive an email confirming the payment.

5. The funds become available to you.

The customer never enters their credit card details in their website, and just as well - if they did you'd have the legal, ethical and practical responsibility of ensuring the data is secure.

You will probably be able to customize the payment page to some degree - tweak the colour schemes, add a company logo etc.



James

 

[davejenni]

Hello James,

I understand that by entering their credit card details directly on our site would be a host of compliance issues that would need to be addressed.

We would be using Sage Pay's 'form' option where they our website would redirect them to their site. Upon completion of the payment, they would then be dropped back into our site. I'm sure it would land them on a 'thank you' type of page.

Do I have this right in thinking that I need a business bank account, a merchant account and a payment gateway?

The business bank account need not be the same as the merchant account, correct?

Thanks for the input... I look forward to further info from you or others.

Cheers,

Dave

 

[Paul Kelly ICHYB]

1. Is my 'merchant account' different than the bank I do my business banking through (or can it be?). In our case HSBC....
   
   It can be - shop around! A merchant account is the receiver of the money - they will pass it onto your bank/account.
2. We have settled on SagePay for part of this process becasue of recommendations from two of our suppliers. How do they work into the flow
   
   Sagepay are Payment Processors, which means that that manage the transaction between the customer, your site (they site here) and your merchant account
3. What is the flow of the transaction? By that I mean the customer puts in their credit card details onto my site, then blah, blah, blah...
   
   See above
4. At what point can we have access to the money from the transaction?
   
   It is paid automatically into your account. For a new business/account, payments can be delayed for a week or two, but , once established, you should get the money in a few days.

 

[davejenni]

Hello Consultant,

Thank you for the additional info. These are the kinds of details that I can begin to wrap my head around.

I guess at this point, I need to make sure that the shopping cart on our website, Sage Pay, the merchant account (yet to be determined) and our business banking are all compatible and can 'speak' to each other.

Do you have any recommedations for a merchant account?


Many thanks,

Dave

 

[alanc]

I guess at this point, I need to make sure that the shopping cart on our website, Sage Pay, the merchant account (yet to be determined) and our business banking are all compatible and can 'speak' to each other.Dave

Treat this as two processes
SagePay <--> Merchant Account - you shouldn't have any problems here.

your website <--> SagePay - this is the bit that might be more difficult (although SagePay integrate with dozens of shopping cart systems).

Do you have any recommedations for a merchant account?

All the major names in banking have a 'merchant' arm - Barclays, HSBC, Natwest etc. The main differences lie in set-up costs and on-going charges. You need to contact them for a quote.

 

[davejenni]

Hello,

What is all of this I hear about FSB? Is there really a benefit in using them to access a cheaper merchant account? We were going to use HSBC for our merchant account, but I am nervous being that we have no trading history that they will want us to put a large sum of money parked into one of their accounts.

Any ideas? I guess that is one of my big fear is tying up a chunk of cash.

Cheers,

Dave

 

[alanc]

What is all of this I hear about FSB?

Have a look at the FSB website. It gives you all the details

 

[davejenni]

Ok, this is sinking in a bit more. I looked at the FSB site. Good stuff even if we don't use their access to Streamline.

It looks as though at the moment our question mark is the Merchant Account relationship. If we use Sage Pay, Streamline is out. Does anybody have any experience with Sage Pay's merchant account services and pricing structure?

Cheers,

Dave

 

[davidakerr]

As explained in Consultant's post. Sagepay are the processors of the transaction between the customer and your Merchant Account Provider. There is no reason why you cannot use Sagepay to process the transaction whilst RBS Worldpay/Streamline is a means of accepting the payment. Check out RBS/Worldpay Business Gateway 350 payment service. FSB Members can now accept payments on line and by telephone for an all inclusive monthly fee of £18.95 which includes up to 350 transactions.

 

[davejenni]

Hey Dave,

So I can use Sage Pay as my payment gateway, and use Streamline as my Merchant Bank? Is that correct? :|

Thanks for the advice!


Cheers,

Dave

 

[Rainbow Chasers']

FSB have a deal with co-op where you get permanent free business banking, no hitches! They set up your merchant services for free, and you get 3 months free. Then you pay £14.95 a month.

There are lots of other benefits such as cheaper insurance, legal advice, finance and lots of other goodies.

 

[davejenni]

FSB have a deal with co-op where you get permanent free business banking, no hitches! They set up your merchant services for free, and you get 3 months free. Then you pay £14.95 a month.

There are lots of other benefits such as cheaper insurance, legal advice, finance and lots of other goodies.

Are you using the benefit of the Streamline Merchant Bank services?


Cheers,

Dave

 

[Rainbow Chasers']

Currently being set up! The deal with them through FSB is far superior to what I was offered with the same sysem through the banks! We are talking half the price on rental and cards, and no £500 set up fees!! (one bank said £500, another £380 for the same thing! lol!)

So that was my £200 back straight away!

They also do their own credit cards, savings accounts, medical and god only knows what else. The mortgage rate side looks to be a third of what i was offered recently - so well worth investing in my opinion, if nothing else than to save some money. But you do have support there as well

 

[davejenni]

What are they asking you to provide for your Merchant Account? Is it only £14.95 per month or is there a per transaction as well?

Thanks for the input!

Cheers,

Dave

 

[Kay_SagePay]

[FONT=Tahoma,sans-serif]Hi Dave

I was interested in your post and wonder if I can offer any help.[/FONT]

[FONT=Tahoma,sans-serif]Is my 'merchant account' different than the bank I do my business banking through (or can it be?). In our case HSBC....[/FONT]

* [FONT=Tahoma,sans-serif]A merchant account is an agreement to trade with the bank rather than the business bank account where you can withdraw funds. A merchant account processes and reconciles your funds but you can never withdraw from this account as they settle your funds. [/FONT]

* [FONT=Tahoma,sans-serif]A business bank account is a required for merchant banks to confirm and monitor/regulate anti money laundering as its a traceable account against your company name. [/FONT]

* [FONT=Tahoma,sans-serif]A bank account (settlement bank account where funds are deposited) can be any nominated bank account in which you request your funds to be settled. Your settlement bank account does not need to be the same as the merchant bank account. We offer merchant service package too, information is on our website. We will work with whichever bank you choose. [/FONT]

* [FONT=Tahoma,sans-serif]You may wish to check out our website and select the following for more information and useful links: [/FONT]

*
o [FONT=Tahoma,sans-serif]Developers tab[/FONT]

*
o [FONT=Tahoma,sans-serif]Industry Knowledge tab[/FONT]

*
o [FONT=Tahoma,sans-serif]Merchant Banks and Accounts [/FONT]

[FONT=Tahoma,sans-serif]We have settled on SagePay for part of this process becasue of recommendations from two of our suppliers. How do they work into the flow? [/FONT][FONT=Tahoma,sans-serif]and [FONT=Tahoma,sans-serif]What is the flow of the transaction? [/FONT][/FONT]

[FONT=Tahoma,sans-serif]Sage Pay are a secure payment gateway. Sage Pay Go is a secure payment gateway that enables businesses to accept card payments from their customers via the internet, over the phone or by mail order. To learn how it works log onto our website sagepay.com:[/FONT]

* <LI style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-list: l2 level1 lfo3" class=MsoNormal>[FONT=Tahoma,sans-serif]select Sage Pay Go (located on the left of the home page)[/FONT]
* [FONT=Tahoma,sans-serif]select How it Works tab - this will show you a flow chart along with information on how we, Sage Pay, fit into the process [/FONT]


[FONT=Tahoma,sans-serif]At what point can we have access to the money from the transaction?[/FONT]
[FONT=Tahoma,sans-serif]It depends on your agreement with your merchant bank. Standard settlement agreements are between 3-5 working days from the date of transaction. I would recommend you check this with the merchant bank you opt to go with. [/FONT]


[FONT=Tahoma,sans-serif]We would be using Sage Pay's 'form' option where they our website would redirect them to their site. Upon completion of the payment, they would then be dropped back into our site. I'm sure it would land them on a 'thank you' type of page.[/FONT]

[FONT=Tahoma,sans-serif]A Success URL directs the customer back to your website, your success page, whereby you may display a thank you page. A confirmation email is issued to the customer from Sage Pay in the event of a successful order on Form only. [/FONT]
[FONT=Tahoma,sans-serif]
[FONT=Tahoma,sans-serif]Do I have this right in thinking that I need a business bank account, a merchant account and a payment gateway?[/FONT][/FONT]
[FONT=Tahoma,sans-serif]Yes.[/FONT]
[FONT=Tahoma,sans-serif]The business bank account need not be the same as the merchant account, correct?[/FONT]
[FONT=Tahoma,sans-serif]Yes but you may need to provide evidence of a business bank account i.e bank statement.[/FONT]

[FONT=Tahoma,sans-serif]At what point can we have access to the money from the transaction?[/FONT]

[FONT=Tahoma,sans-serif]Sage Pay notify the merchant bank of the settlement funds the following day of transactions processed. Standard timescales are 3-5 working days for when you will have access to the funds however this may depend on the agreement you have with your merchant bank. Please check with your merchant bank for confirmation of when you will receive the funds. [/FONT]

[FONT=Tahoma,sans-serif]It looks as though at the moment our question mark is the Merchant Account relationship. If we use Sage Pay, Streamline is out. Does anybody have any experience with Sage Pay's merchant account services and pricing structure?[/FONT]
[FONT=Verdana,sans-serif]
[/FONT][FONT=Tahoma,sans-serif]If you would like more information regarding our merchant services package please refer to our website, then select Merchant Services to the left of the home page followed by Merchant Services tab.

Sage Pay Go pricing: there are no set-up fees and Sage Pay Go costs from just £20 per month. There are a host of added extras too, including standard fraud prevention tools, telephone and mail order transaction facilities and 24/7 customer support are included as part of your package.

If you have any further queries or would like to discuss any of the information I have posted please feel free to contact me on 0845 111 4455 or via Twitter. I am available till 1700 today and between 0900-1700 next week.

Good luck in your searching for a merchant account and hopefully I will work with you in the near future.

Kind regards[/FONT]
[FONT=Calibri,sans-serif]Kay[/FONT]

 

[Rainbow Chasers']

What are they asking you to provide for your Merchant Account? Is it only £14.95 per month or is there a per transaction as well?

Thanks for the input!

Cheers,

Dave

Nothing! there is a standing charge of £14.95 - which is half the banks ask, and then it was 25p a transaction. I think you get so many free, can't recall.

 

[davidakerr]

Dave

Don't get confused here. The £14.95 per month deal is for a Fixed Terminal. It's probably not what you are looking for if you are setting up an e-commerce site. Let me suggest you contact the FSB and arrange for someone to contact you and have all the various Merchant Services options explained to you and then you can decide what one is best for you.

 

[yourmomma]

Hello. Would you know if it is possible to get a merchant account with a virtual office address? Do they check? Do they mind?

 

[oatz]

Check out RBS/Worldpay Business Gateway 350 payment service. FSB Members can now accept payments on line and by telephone for an all inclusive monthly fee of £18.95 which includes up to 350 transactions.

Is that all you pay, £18.95 and no additional transaction fees or %?? In other words making each transaction just over 5.4 pence each?!

Many thanks in advance

 

[Freelancer87]

Hello Kay,

Thanks for thati insightful translation. It was all good stuff.

Dave

 

[Rainbow Chasers']

Can give you a better insight now!

The fixed terminal is £14.95 with card charges up to 30p per transaction.

The e-com is RBS Worldpay, at £18.95 per month including 350 transactions.

They are two different systems, so if you were to wish to pay 'over the phone' as well as internet you would use both - but realistically, you would be better of with the e-com side and have it done there.

 

[Freelancer87]

Hello,

We won't need a physical terminal, just the ecommerce side of things. The 'deal' sounds good so far. We should be able to use Sage Pay as our payment gateway and Worldpay for our merchant account. That's right, isn't it? I believe I have a firmer grasp on things now thanks to all those involved in this thread.

Cheers,

Dave

 

[Rainbow Chasers']

As i understand it, when someone goes to 'pay' on your site, theyt are redirected to RBS Worldpay secure site and it is all done from there!

If you call your nearest RBS they will go through the system with you - but the prices will be higher.

 

[Freelancer87]

We just signed up for FSB. I hope to get additional info from WorldPay today to firm up the deal.

Thanks for the direction!



Cheers,

Dave

 

[oatz]

Just checked out the FSB 350 deal and I've been told this refers to the payment processor part ONLY (with worldpay) and no merchant number:

350 transactions per month for £18.95 plus VAT and no merchant number

Is this correct??

 

[Freelancer87]

Hello,

Stil nothing from RBS yet.....they guy at FSB told me to expect somebody to contact us, but nothing as of yet. I'll let you know as soon as I talk to the guy.


Best wishes,

Dave