Business Bank Account & Chip and Pin HELP!

jct126 · 25 February 2007 at 11:03AM

Hi Guys

i know there are lots of threads on here about business banking but i really need help!

My hubby and i have just brought a restaurant that has a great reputation and is making a tidy profit. The problem is that my husband lost his job in 2005 and it took us until late 2006 to get straight, so consiquently our credit rating is awful.

Natwest and hsbc have turned us down (hubby banks with natwest so we kind of knew they would reject us) so im now waiting for an appointment with lloyds.

A few things really, can anyone recommend any of the Guaranteed business bank companies, or are these a scam???

and secondly, being a restaurant we need to take card payments, where again we have to be credit checked (although i have no clue why?) so doea anyone know of a net based system we can just add on to a normal bank account? or has anyone got a chip and pin machine account who has bad credit and would like to share who they are using?

Many thanks

Jx

ukbill69 · 25 February 2007 at 2:37PM

Right lloyds will prob be the way to get a bank account, but make sure your straight with the business manager with your credit history and tell him/her your plans and that you would sign an agreement if needed to say you would not need to borrow. With credit check on merchant account, they check this because they are giving you a terminal that you could process fraud cards and withdraw and !!!!!! off. You don't need to go to the same bank to get a merchant account, there are tons out there. As a restaurant you will want a wireless terminal, so the person can take the terminal to the table. Has the old owner left you an old terminal, because you might be able to transfer it in your name.

greyteam1959 · 25 February 2007 at 3:59PM

jct126 wrote:

Hi Guys

i know there are lots of threads on here about business banking but i really need help!

My hubby and i have just brought a restaurant that has a great reputation and is making a tidy profit. The problem is that my husband lost his job in 2005 and it took us until late 2006 to get straight, so consiquently our credit rating is awful.

Natwest and hsbc have turned us down (hubby banks with natwest so we kind of knew they would reject us) so im now waiting for an appointment with lloyds.

A few things really, can anyone recommend any of the Guaranteed business bank companies, or are these a scam???

and secondly, being a restaurant we need to take card payments, where again we have to be credit checked (although i have no clue why?) so doea anyone know of a net based system we can just add on to a normal bank account? or has anyone got a chip and pin machine account who has bad credit and would like to share who they are using?

Many thanks

Jx

I will start with the last line of your post
Do not ever ever try and work a fiddle sharing an account like this. Your are breaking every rule in the book and could leave yourself open to big big problems.
Like the other post says you will need a wireless terminal in a restaurant to give you an idea of cost that actually goes on your turnover.
TO around £190000
Terminal rental £25 plus VAT per month
fees...... 20p per debit card transaction
2% on credit card transactions
above figures with Barclay Merchant Services Ltd
Hope this helps

kimbatty · 26 February 2007 at 12:15PM

I think you may have misread the last line of their post Mervyn because they were just asking if the person would be willing to share details of who they get their merchant service from, not to actually share use of the terminal

Anyway just wanted to say I use Barclays as well and they have been great and I use one of their standalone wireless terminals which is perfect for customer present transactions. It cost about £250.00 to set up the merchant account and then I pay a monthly amount of approx £25.00 + vat for the service and another monthly amount of £25.00 + vat for the terminal. Then additional charges for each card transaction which will vary according to the number or transactions you project you will do when you take up the service

There are also online providers such as Worldpay http://www.worldpay.com/ and Streamline http://www.streamline.com/default.htm both of whom should also be able to provide a standalone terminal service along with your merchant account

Hope that helps

blue_monkey_2 · 26 February 2007 at 1:27PM

That is what I was going to say, I think the OP wanted to know who they were using, not to share the account.

I too use Barclays, my credit rating is Pants, Abbey turned me down flat but Barclays were really interested, you need a face to face meeting with a business manager, invite them to your company, take you accounts and show them that the business is working. I was given a face to face talk and asked what I would need and they agreed there and then. I also get credit checks with the set up of both the internet merchant account as well as the Card Merchant account and was fine both times. I got my machine through my Barclays account - I must add though I think that Renting your Chip & Pin machine is a BAD idea. It costs 3 times as much, I paid Barclays £575 for mine (plus VAT) and then it is mine, all I pay for is the monthly fee to Vodafone but mine is different as I am out and about and not linked to a land line. You can pick up the units cheap on eBay though if you have a look for credit card machines through the business section. You get one main terminal that is connected to the phone line to dial up but you can add other units to it that come off of their stands and are able to be carried to the table - this is all you need but do not use MObile Chip & Pin solutions as they are absolute CARP and I'd never recommend them. I am not sure if it would be applicable to your business but try and join the Market Traders Federation, or more appicable (I think it is call the Small Business Federation, not 100% sure of the name but my friend is a member of this) I got a reduced set up fee of £60 and I do not have to pay a monthly minimum for my card transactions, both my merchant accounts were set up for free. Without this membership I would alos have to pay £20 +VAT per month but tell them you are a member of either of these and you get lots of things for free or reductions in the amount of money you pay on charges, with the NMTF I get free public and employers liability as well and then access to cheap Business INsurances - give them a call and ask, it never hurts to, look up NMTF on Google for the details. Also, I am with VelocityPay for my Internet Merchant account as it has no set up fee and low monthly fee for my internet based transactions.

There is help out there, you just have to persevere really, I got one so I am sure anyone can, LOL. Good luck with your new venture.

jct126 · 22 March 2007 at 10:03PM

Hi Guys

Thanks for the replies and yes i meant could people tell me who they used... not could i use their machine!!! LOL

To update, LLoyds opened us an account with no problems at all, we just went into the branch filled out the form and were given the account numbers then and there!

Secondly, their sister company cardnet have offered us a chip and pin service, mobile terminals and 1.65% on credit cards 0.27p on debit cards and £29 monhtly charge including vat, and it looks as though they may better this as i told a little fib and said i had had a better quote so they are readjusting the card charges, taking another look at the monthly fee and putting some new figures in the post.

Jx

berniet_3 · 16 April 2007 at 5:59PM

JCT - I have been looking for this information for ages and should have come to good old Martin!!

Now that you are set up (congratulations by the way) were the forms sensitive and did they do credit checks at Lloyds. I have been personally bankrupt (unrelated to business) and am now setting up in business permanently having being doing markets for ages. I don't need wireless terminals and as suggested by another on here have browsed Ebay etc for wired terminals and there are some bargains to be had.

If anyone else can offer any further info that would be very much appreciated.

Kilty_2 · 16 April 2007 at 10:31PM

As far as I know, Lloyds credit checked me when I was interviewed in the branch for an account. Maybe it was just identity verification but I don't think so.

The system threw out my application initially because I'm not on the electoral roll (and possibly because I have no credit rating whatsoever) but it was cleared when the woman phoned through to the business centre in Glasgow.

My business account is almost open, I'm awaiting the documentation confirming it and the cheque book, etc. I'm 16, by the way, so I don't think their acceptance criteria is too strict as long as you can provide them with proof that you are running a legitimate business.

The only drawback is that they are giving me a Cashpoint card instead of a Business Debit Card, due to the debit card being a 3 in 1 card and no other option being available. Not too big an issue but does mean I'll still need to juggle a personal account for purchases.

After all I've said about Lloyds, they are proving to me that their business banking at least is very professional.

jct126 - Do you know if Cardnet offer a service for people who do not require a terminal (ie, Card Not Present only) with lower monthly running costs? I'd like to be able to accept credit and debit cards but due to the nature of my work, monthly fees arent a good idea. I'd much prefer paying higher "per transaction" fees.

Business Bank Account & Chip and Pin HELP!

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