Merchant Rates for Card Payments - Are these good rates?

[SFD]

When I started my business 2 years ago I could only get accepted by Bank of Scotland for a merchant account as I had no trading history. Well, Barclaycard accepted me but only if they could keep all the money for 120 days before giving it to me

As BoS was my only option I took their rates and ran with it.

The rates which I was initially given, based on a projected turnover of £80k were

40p - debit & credit card payments
1.66% - standard credit cards
2.16% - business credit cards
(I work with small and large businesses, so all methods are used)

After 2 years of trading and a turnover of £200 - £250k per annum I have requested a review, I have just got:

35p
1.56%
1.96%

These still seem quite expensive to me and the guy said I am free to shop around as that is definitely the lowest he can go.

How do these look to people - are they quite competitive or complete cack?

 

[british steve]

That does seem a touch steep. Have you tried phoning around?

We are just in the process of changing merchants at the moment. I would have to advise you to say well clear of Payment Sense. I spoke to them on the phone for almost an hour yesterday, was quoted some prices and then when the contract was emailed to me it was stupidly expensive with all the rates increased - Payment Sense also try and lock you in to a 5 year contract. I would never ever touch this company ever again.

Elavon are pretty useless as well - we applied to Elavon over 3 weeks ago, found out yesterday morning that they had not forwarded on the paperwork to Santander after they told us we would be up and running in two weeks. Elavon also have hidden charges that you don’t get told about unless you ask.


I wish you luck.

 

[SFD]

Cheers Steve,

I haven't tried phoning round yet as I remember what a tiresome process it was last time trying to get figures out of people.

Anyone feel like telling me what %ages they are paying on card transactions?

If it's only a small relatively small difference then I'll stick with BoS as it's easier than changing but would change if there were decent savings to be made.

 

[ThePublisher]

Streamline I'm paying
25p debit, 24p maestro, shortly to increase by 1p each. MC Credit cards 1.8%, Visa Credit cards 1.7% and Business cards 2.6%.

Authorisation costs 3.85p per transaction and terminal rental is £19.95 per month plus VAT.

 

[ThePublisher]

Oh and if Elavon are the same as Optimal, which I think they may well be as I recognise Elavon from my bank statements, I'd stear well clear. I used to have an account with them, they only paid moneys collected once a week on a Thursday, 2 weeks in arrears. Then the money wouldn't be in my account til the following Tuesday. If I took a card payment on a Friday I wouldn't get the money in my account for something like 25 days, plus they held 10% of it back against the possibility of chargebacks. Plus the charges were 2.99% flat rate whether debit or credit cards.

 

[neil358]

Hi

have a look at the FSB website, Federation of Small Businesses.
If you become a member, you can have free banking also reduced rates for fixed and mobile terminal, not sure on cost of merchant services but i have heard they are very good. Also with the membership there are other benefits, free legal advice and tax advice.

 

[That Guy]

SagePay have been good to me in the past and the customer service people seem to know what they are talking about, here are their rates:

http://www.sagepay.com/products_services/bolt_ons/merchant_services/pricing

 

[victoria001]

streamline have a lot of hidden charges such as call authorisation fees, charge back, refund fees...

Min monthly service charges are also very steep and can be as much as £25 on top of the rental of the terminal its self.
24/25p is still high! and with streamline you are charged two different rates from a business card and a personal one.. look out for a 'Blended Rate' which means the same processing fee for either card.

Also look out for PCIDSS complience fees, Elevon charge £17 per month for this on top of all your processing and rental of the machine.

Keep shopping around, Salamander rentals (AIB) do not charge these added expensive fees.

 

[deniser]

I think your rates are good (talking to the OP not the above post)!

We pay much the same as The Publisher but without the extra authorisation fee.

We don't pay anything extra such as refund fees (one of the major reasons we didn't switch to Barclays) nor chargeback fees.

We don't have any Elavon settlement issues, nothing is held back, money goes into the account daily.

I think our rates are good but yours are better as it is the credit card fee and not the debit card fee which makes the difference.

But you do need to factor in the extra fees such as refund fees as these can be substantial if you are in clothing.

 

[k13p]

Costco are doing come very good rates through elavon, 11.5p, 1.5% and no rip off charges.
Santander are also doing a decent deal through elavon.


I pay
8.75p dc
1.5% cc

no auth charges, through streamline, though i have a high t/o
barclaycard have become very expensive, i have a store with a t/o of 100k on card, and they charge me 20p + 3p auth for debit cards, which is expensive.

i think the card processing companies offer different (better/worse) rates to different kinds of businesses - turnover dependent?

 

[Del101]

I'd definately shop around, I know it might seem like a hassle but you could save yourself money and I think that's worth a bit of effort!

Just do a quick google search and pick four companies - I'd stay away from the 'big' banks as their rates are usually high, there are plenty of little guys who can help - off the top of my head Handepay, retail merchant services, cardsave and elavon have helped people on here before.

Good Luck!

 

[business saver no1]

Hi there,
I work in the pci industry and would be happy to look at your current rates and look at getting them reduced. I can save businesses up to 40% doing a "compare the market" and advise on a more fitting plan for your business even staying with your current provider or offering you a new payment facility.

 

[business saver no1]

Streamline I'm paying
25p debit, 24p maestro, shortly to increase by 1p each. MC Credit cards 1.8%, Visa Credit cards 1.7% and Business cards 2.6%.

Authorisation costs 3.85p per transaction and terminal rental is £19.95 per month plus VAT.

Hi there,
Are you still on the same rate as I can help to reduce

 

[kamilanwar]

We are with paymentsense FDMS on the following rates.


Visa Credit 2.5%
UK Deb (Visa/Business/Elect) 30p
Visa Business, Corporate, Purchasing 3%

I am also looking to get discounted rates either with paymentsense or switch to diff merchant.

Do you guys think it would be possible for Paymentsense to process either a new application or review the existing one on our behalf for better rates as i am already being offered discounted rates by Streamline but its a time consuming process and complexities involved if we integrate a totally different gateway on our website.

Thanks

 

[KateCB]

DO you have to be doing a certain turnover to get the lower rates though?

I have a friend who is being charged 1.98% on all credit cards, 40p debit by HSBC - turnover around 50k ( sole trader) - when his turnover increases, will his rates be better if he shops around, or should he be shopping around now?

 

[QuickHomeBuyers]

8.75p debit is the lowest Ive seen/heard.

 

[shadesofblue]

We are with paymentsense FDMS on the following rates.


Visa Credit 2.5%
UK Deb (Visa/Business/Elect) 30p
Visa Business, Corporate, Purchasing 3%

I am also looking to get discounted rates either with paymentsense or switch to diff merchant.

Do you guys think it would be possible for Paymentsense to process either a new application or review the existing one on our behalf for better rates as i am already being offered discounted rates by Streamline but its a time consuming process and complexities involved if we integrate a totally different gateway on our website.

Thanks

Those rates are very high. There is absoultely no way paymentsense will drop those rates for you now you're tied into there contract. You're just going to have to sit them out or get a better deal with a different provider and buy your way out of the contract.

If you're switching card providers you should be looking to get around 12p on debits and 1.1% on credit cards with business cards slightly more.

If you're new to cards aim for 20p and 1.5% on credits.

there should be no reason to pay an authorisation fee nowadays

 

[shadesofblue]

DO you have to be doing a certain turnover to get the lower rates though?

I have a friend who is being charged 1.98% on all credit cards, 40p debit by HSBC - turnover around 50k ( sole trader) - when his turnover increases, will his rates be better if he shops around, or should he be shopping around now?

with most independents it's down to the salesperson to set the rates within certain parameters. Obviously the lower the rates the less commission they receive but there is no reason why he should not switch and get rates of 1.1% and much lower debit rates of 12-14p

 

[business saver no1]

We are with paymentsense FDMS on the following rates.


Visa Credit 2.5%
UK Deb (Visa/Business/Elect) 30p
Visa Business, Corporate, Purchasing 3%

I am also looking to get discounted rates either with paymentsense or switch to diff merchant.

Do you guys think it would be possible for Paymentsense to process either a new application or review the existing one on our behalf for better rates as i am already being offered discounted rates by Streamline but its a time consuming process and complexities involved if we integrate a totally different gateway on our website.

Thanks

Hi there,
So are you using a virtual terminal or a static/GPRS terminal?
if you would like a merchant account review I can help most people

 

[kamilanwar]

Hi there,
So are you using a virtual terminal or a static/GPRS terminal?
if you would like a merchant account review I can help most people

We are using Virtual/MOTO. All our orders are online and on phone. We look forward to get this done ASAP.

Thanks

 

[smo]

Those rates are very high. There is absoultely no way paymentsense will drop those rates for you now you're tied into there contract. You're just going to have to sit them out or get a better deal with a different provider and buy your way out of the contract.

If you're switching card providers you should be looking to get around 12p on debits and 1.1% on credit cards with business cards slightly more.

If you're new to cards aim for 20p and 1.5% on credits.

there should be no reason to pay an authorisation fee nowadays

Most traders dont have a hope in hell of getting 12p debits or 1.1% credits - we've got 19 years clean trading history taking cards turning over a good ammount and ours come in at 21p debit and 1.25% credit - thats after shopping about and negotiating.

Again a newcomer to cards hasnt got a hope in hell of getting an offer of 20p debit and 1.5% credit, generally they are looking at 30p debit (or more) and at least 1.9-2.5% credit.

 

[willj87]

DO you have to be doing a certain turnover to get the lower rates though?

I have a friend who is being charged 1.98% on all credit cards, 40p debit by HSBC - turnover around 50k ( sole trader) - when his turnover increases, will his rates be better if he shops around, or should he be shopping around now?

Your bank will look at your turnover to provide you with a rate. Most of the independents (like myself) don't so much, but at the end of the day, it does come down to economies of scale to a certain extent. Those rates are high. You'll also pay more if you have a high amount of customer not present, or CNP, transactions.

8.75p debit is the lowest Ive seen/heard.

It's a very low rate, I've seen lower just once, and that was for Subway on Maestro's. You have to be taking ALOT of debit cards to be paying that little.

We are using Virtual/MOTO. All our orders are online and on phone. We look forward to get this done ASAP.

Thanks

Hi there, I can also offer my assistance if required. We guarantee to beat any quote on card processing. Please PM me if you'd like to discuss further.

Regards.

 

[kamilanwar]

I do not see any options to send you message. Can you send me a message with your email?

Thanks

 

[willj87]

I've sent you my email. You'll find your private messages in the top right corner, just below 'search' and 'quick links'. You can send private messages by clicking on someone's name.

 

[shadesofblue]

Most traders dont have a hope in hell of getting 12p debits or 1.1% credits - we've got 19 years clean trading history taking cards turning over a good ammount and ours come in at 21p debit and 1.25% credit - thats after shopping about and negotiating.

Again a newcomer to cards hasnt got a hope in hell of getting an offer of 20p debit and 1.5% credit, generally they are looking at 30p debit (or more) and at least 1.9-2.5% credit.

I assure you those rates are available. I worked in the industry until around 4 months ago and could offer these as standard. Your credit rating shouldn't effect the rates you're offered. It may mean your have a rolling reserve or need to pay a bond but not higher processing rates.

If you're happy with the service and the rates you're on then that's fine but there are better deals out there.

 

[AndyBlue]

Costco are doing come very good rates through elavon, 11.5p, 1.5% and no rip off charges.
Santander are also doing a decent deal through elavon.

I am on these rates having switched from being direct with elavon to the costco deal. One thing to note with elavon is that unlike streamline which can tack 3/4 days to get the money into your account, I actually get it next day !! I think this only happens with partner banks santander being one but certainly helps with cashflow.

 

[willj87]

I am on these rates having switched from being direct with elavon to the costco deal. One thing to note with elavon is that unlike streamline which can tack 3/4 days to get the money into your account, I actually get it next day !! I think this only happens with partner banks santander being one but certainly helps with cashflow.

It is only for Santander customers where you get next day fund clearance. Beware with the Costco deal... the rates aren't capped, meaning that they can go up at any time. I've read some reviews of the same agreement that Elavon and Costco have in the US and people have been stung by it being an 'introductory offer'.

 

[gogs]

I am on these rates having switched from being direct with elavon to the costco deal. One thing to note with elavon is that unlike streamline which can tack 3/4 days to get the money into your account, I actually get it next day !! I think this only happens with partner banks santander being one but certainly helps with cashflow.

Have looked into this deal, someone mentioned watch out for hidden charges.

What are they exactly?

Are they likely to just hike the rates up at anytime.

The quote I got increased for debit cards for some reason, they bumped it upto 20p, not the end of the world but not sure why they had to change that

 

[business saver no1]

Have looked into this deal, someone mentioned watch out for hidden charges.

What are they exactly?

Are they likely to just hike the rates up at anytime.

The quote I got increased for debit cards for some reason, they bumped it upto 20p, not the end of the world but not sure why they had to change that

yes the rates are cheap.. very cheap.. but there are £13.50 a month extra fees so it prety much levels out to a standard
elavon deal. I could acctually get a better deal than the costco one through Elavon.

- Gogs and or anyone else, if you still wanted some info and a suggestion to what company would be best for your merchant services drop me a pm and ill be happy to advise an impartial solution

 

[Harp32Wil]

These still seem quite expensive to me and the guy said I am free to shop around as that is definitely the lowest he can go.

 

[shadesofblue]

yes the rates are cheap.. very cheap.. but there are £13.50 a month extra fees so it prety much levels out to a standard
elavon deal. I could acctually get a better deal than the costco one through Elavon.

- Gogs and or anyone else, if you still wanted some info and a suggestion to what company would be best for your merchant services drop me a pm and ill be happy to advise an impartial solution

It won't be impartial though will it as you act as a sales agent for a specific company.

what are the £13.50 charges for exactly?

 

[gogs]

I'd also like to know what the £13.50 charges are.

I asked for a full breakdown on the phone and they said there was your terminal rental, MMC and the PCI fee which is waived for first year.

 

[willj87]

I'd also like to know what the £13.50 charges are.

I asked for a full breakdown on the phone and they said there was your terminal rental, MMC and the PCI fee which is waived for first year.

Are you a Costco Executive member? Is the £13.50 fee anything to do with this perhaps? Costco have a deal with Elavon but their rates are not capped. Meaning they can go up at any time. They might not... but they can.

If you need any more help with Elavon or rates, I know you've had a few offers already, but get in touch. My advice may not be completely impartial but it'll be 100% honest

 

[shadesofblue]

Are you a Costco Executive member? Is the £13.50 fee anything to do with this perhaps? Costco have a deal with Elavon but their rates are not capped. Meaning they can go up at any time. They might not... but they can.

If you need any more help with Elavon or rates, I know you've had a few offers already, but get in touch. My advice may not be completely impartial but it'll be 100% honest

I've explained this in another thread but will do it again here. If you sign a contract with elavon with the rates of 1.1% and 11p then if they decide to rise them you'll have the option to switch and exit the contract.

This happened to a number of streamline customers in March of this year and I managed to pick up a lot of business from it.

It's scare mongering to suggest they can put the rates up as and when they choose with the customer not having any options.

 

[gogs]

Are you a Costco Executive member? Is the £13.50 fee anything to do with this perhaps? Costco have a deal with Elavon but their rates are not capped. Meaning they can go up at any time. They might not... but they can.

If you need any more help with Elavon or rates, I know you've had a few offers already, but get in touch. My advice may not be completely impartial but it'll be 100% honest

Yes an Exec member, which they said only had extra benefits like the first month rental for free and the first years PCI compliance fee waived.

Mobile GPRS terminal is £18.50 + vat and the MMC is £20.

When I made the initial enquiry I went via the Costco line which seems to be Irish based and they were very helpful, however they could not produce a contract for some reason, said it needed to go to the San team.

I then had to call them where they were more hard sell and seemed less organised and made several mistakes, they eventually came back after saying they might not be able to give the rates advertised and agreed on the 1.1% but the 11p would be increased.

Of course I pushed them on any hidden charges but they said there wasn't.

 

[business saver no1]

Have looked into this deal, someone mentioned watch out for hidden charges.

What are they exactly?

Are they likely to just hike the rates up at anytime.

The quote I got increased for debit cards for some reason, they bumped it upto 20p, not the end of the world but not sure why they had to change that

It won't be impartial though will it as you act as a sales agent for a specific company.



My line of work is business development. I help clients with merchant services, direct debits, business consulting etc. I am not a sales agent for one company. It doesnt matter to me what company people i advise go to, I just advise on the ones more suitable to their needs.

 

[shadesofblue]

It won't be impartial though will it as you act as a sales agent for a specific company.



My line of work is business development. I help clients with merchant services, direct debits, business consulting etc. I am not a sales agent for one company. It doesnt matter to me what company people i advise go to, I just advise on the ones more suitable to their needs.

so you don't receive a commission when they switch then?

 

[business saver no1]

It won't be impartial though will it as you act as a sales agent for a specific company.

My line of work is business development. I help clients with merchant services, direct debits, business consulting etc. I am not a sales agent for one company. It doesnt matter to me what company people i advise go to, I just advise on the ones more suitable to their needs.

 

[business saver no1]

so you don't receive a commission when they switch then?

People dont even have to switch providers to save money. They can have an account review which is what I can do.

Secondly, Yes i do get a refferal commission for introducing new business. its a pretty standard thing! but if I do save you money by switching does that even matter to the business that is saving the money? diferent companys are good for different types of merchant services I pick and choose the right one for you if you dont want the hassle or have the time to spend

 

[shadesofblue]

People dont even have to switch providers to save money. They can have an account review which is what I can do.

Secondly, Yes i do get a refferal commission for introducing new business. its a pretty standard thing! but if I do save you money by switching does that even matter to the business that is saving the money? diferent companys are good for different types of merchant services I pick and choose the right one for you if you dont want the hassle or have the time to spend

It's not impartial then is it if you're receiving a commission. Barclaycard, HSBC or streamline don't pay commissions to independents soit's unlikely you would recommend them even if that was the best deal.

what you can offer a customer is limited to companies that are prepared to offer you a commission.