SagePay & Merchant Accounts

[BrighterTools]

Hi All,

I am a software developer, and although I have integrated Protx/SagePay and other Payment Service Providers into various websites and applications and understand the technicalities, I dont however understand merchant accounts.

I am now in the position where I want to integrate SagePay into my own application and have a question regarding merchant accounts, should I sign-up to SagePay requesting an RBS account to be set up at the same time or should I contact my bank first about a merchant account? Does it matter? I would think that I may get a better rates with my own bank and since they know me to some degree,I should have a better credit rating with them?

Your thoughts appreciated.

Thanks

Mark

 

[phil battison]

Mark

We used to be with WorldPay as a PCP (own Merchant Account was with RBS. We decided to move away from WorldPay and checked with our own Bank - Barclays who gave us a much better rate. We've coupled this with the SagePay (Protx) service and the overall savings have proven to be significant. We've also have a better level of "up-time" with SagePay than we had in the previous 3-4 years with WorldPay.

Personally I think negotiating with your own bank and the choosing the right PSP for you is the way to go

Phil

 

[TotallySport]

you don't go through sagepay to get a merchant account, you should apply to the merchant account first, and if they grant you it then sign up for protx. There is no point paying protx if you cannot use their services.

 

[imageonline]

Hi, I am just setting up a merchant account and went to my bank, HSBC. I was advised to use sagepay and use them as a merchant, the charges were cheaper than RSB. You need to haggle a bit, I was amazed how much they came down.

 

[BrighterTools]

Hi,

Phil: Yes, agreed, we have also seen a better continuity of service from Protx over the years compared to WorldPay. I am in the process of finding out details from my bank (LloydsTSB) They have mentioned CardNet as their merchant services, havent heard about that before, will investigate. Thanks for the advice.

TotallySport: Yes, I think that was how Protx worked in the past, maybe the SagePays association with RBS is new, but one does have the option of applying for SagePay AND an RBS Merchant Account in the same online application form. I would assume that the whole SagePay + Merchant Bank account setup would be aligned together. Thanks.

imageonline: Thanks, I will certainly try and haggle with my own bank first, I am sure they will provide a better rate than the 'default' RBS rates as you suggest.

Thanks for the responses...

Mark

 

[PayPoint net]

Hi Mark

The rate that you get from the acquiring bank for your merchant account depends on a number of criteria, mainly the type of business you have and your business model, and whether you have any trading history.

There are two different types of merchant account. An Internet Merchant Account is required for taking payments online via your website. You need a MOTO (Mail Order/Telephone Order) Merchant Account if you're taking payments over the phone or by mail order. It is often easier to secure a MOTO Merchant Account from your bank, especially if you already have your business account with them.

It is worthwhile shopping around and speaking to payment service providers that can package an Internet Merchant Account and/or a MOTO Merchant Account with your payment gateway as you may be able to secure better rates than with your bank. The reason for this is that the payment service provider submits your merchant account application to their acquiring bank partners on your behalf; the PSP then underwrites the risk of your business (e.g. in case you go bust) which means that the bank can offer you more favourable rates via the PSP.

Feel free to come back to us if you have any questions - the best of luck for your business!

 

[gibby]

weve been using protx/sagepay for over 2 years now and not had any issues with them.

We use streamline with sagepay as the rates were much cheaper at the time than anywhere else.

If your a member of the FSB or other trade groups you can get streamline with better rates & no set up fees

I do know that barclays are fighting hard for new business & beating prices to get the business


G

 

[TotallySport]

There are two different types of merchant account. An Internet Merchant Account is required for taking payments online via your website. You need a MOTO (Mail Order/Telephone Order) Merchant Account if you’re taking payments over the phone or by mail order. It is often easier to secure a MOTO Merchant Account from your bank, especially if you already have your business account with them.

There are actually 4 merchant accounts (although it wil vary how they set this up depending on the company used), there is also one which is used for physical terminals and another for continuous athorty.

And if you use get one you shouldn't use it for the other, or you can get them taken away from you.

 

[BrighterTools]

Hi,

What is the FSB?

Mark

 

[TotallySport]

http://www.fsb.org.uk/