Credit card processing - help! - who is cheapest???

ROXYANNA_2 · 29 May 2009 at 12:02PM

Hi everyone

I have recently set up a small cafe where we sell gifts as well, we have been looking into getting a credit card machine but as this is the first time we have done it we are not sure how it all works.

I have spoken to my bank and they have given me some prices but the set up fee is £250 and then there is monthly service charges, transaction charges and rental for the machine on top, at this rate we cannot afford it which is going to cause huge problems!

Does anyone know if i have to use the same bank account for this as my business, i've heard on the grapevine that you can go to other banks and leave your business bank account seperate?? if so who is the cheapest to go with?

Any advice would be appreciated, and the sooner the better!

Thanks all.

Roxyanna

CKdesigner · 29 May 2009 at 8:25PM

Hi Roxyanna, That does sound rather expensive. You are right you can go to any card services provider.

We bank with HSBC and use their card services, I certainly don't think they are the cheapest but we are happy with the charges for the level of service we get. I don't think there was a setup fee, we just pay for the transations as long as these costs exceed £20 a month. No other costs or rental charges.

Hope this helps you.

ukbill69 · 30 May 2009 at 10:53PM

Join a trade group and you will get a discount. Cant think who I used. But I get business cards 1.7%, consumer cards 1.2%, debit cards 13p, refund 20p. No setup charges with barclays.

ROXYANNA_2 · 10 June 2009 at 12:20PM

Thanks guys.

I spoke to Barclays but they wouldn't give me rates anywhere near yours CK! you must be a valuable customer :-)

My accountant has put me in touch with a company called acceptcards who apparently will compare all the banks for me and then come back to me with the cheapest option.

I only called them today so i'll let you know how i get on.

Regards

Rox

whatagreatbuy · 17 June 2009 at 12:13AM

Hi,

What trade group did you use?
I am about to join Abbey National for my business account as streamline give £150 off the set up fee for the service. They charge 3.5% per credit card and 39p per debit card. I still think it is expensive though.
They did say they do another service where you pay a £20 fee per month and you get the credit rate for 2.5% per month. Only worth it for larger businesses though.

Does anybody know anywhere elese offers good rates?
I did try a company on the internet can't remember the name but they don't accept merchants that sell second hand goods or holidays so that was no good. How particular, I don't see why it matters.

All comments and help appreciated.
Thanks

bestyman · 19 June 2009 at 10:16PM

HSBC

1st year £250 includes set up and a machine, debit cards 25p, credit 2%. No other charges

They could be better deals , but thats the best I found at the time.

When machine arrived it was an old secondhand thing, but does the job.

Horace · 20 June 2009 at 1:40PM

If you join the Federation of Small Businesses they have some deals with various card machine providers, I don't know all the details as I am in the process of looking myself.

ROXYANNA_2 · 23 June 2009 at 12:26PM

Hey guys

Thanks to everyone for your assistance and advice.

I am happy to inform you all that i am now set up and taking card payments!!! It only took two weeks!!!!

I contacted acceptcards.co.uk via their website, they contacted me immediately, took some details and then came back and offered me a couple of options with a couple of different banks, we went for a deal that had £50.00 set up fee, NO monthly service charge and a machine for £13.00 per month. The rates were ok aswell, 1.6% for both business and personal cards (which is good as we have a few business people who come for lunch) and 23p for debit cards. There were other offers that had a higher set up fee and different rates, even ones with NO set up fee! but they said that if we go with the low set up fee one that in 6-12 months time we can switch to another bank free of charge and get even better rates!

I have become a bit of an expert at this card malarky after all my research and i am 100% sure i got the best deal possible!

I am proud to be a money saver!!!

Thanks again guys

Rox

ukbill69 · 23 June 2009 at 8:31PM

Yer you have got a good deal there. Good luck with the business!

dannycg · 1 July 2009 at 12:58PM

This link is really useful! I run an auto repair shop (car garage) and have been thinking about getting a machine for years now, last time i enquired the costs were far too high but from what i've read on here it sounds like it could well be do-able!

I have a couple of unanswered questions though...... (now your the expert Roxanna maybe you can answer them???)

1. Is it possible to buy a machine rather than rent one?
2. Is it possible to just take payments from Debit cards not credit cards?
3. How long is the contract for?

I will contact some banks as well to get rates but just thought maybe you guys might have more useful advice.

Thanks Muchly!!!

dannycg · 1 July 2009 at 1:00PM

.......Oh just remembered.....

-Roxyanna- do you have a contact number for the company who helped you please?

Thanks.

Credit card processing - help! - who is cheapest???

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