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

[ROXYANNA]

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
:confused:

[CKdesigner]

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]

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]

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]

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]

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]

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]

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]

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

[dannycg]

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]

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

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

Thanks.

[ROXYANNA]

Hi Dannycg

Sorry for the belated reply i don't get on here that often!

In response to your questions:

I did ask about buying a "terminal" but was advised it is expensive and you need on going support, apparently they update the terminal as part of the care package you get with the rental, also they will swap the terminal within 24 hours if it breaks. To be honest i think it just sounded much easier to pay £15 a month and be able to call on someone else if needed!

Ummmmmm.... have no idea about the debit card payments question. not such a pro after all eh. i guess it might be but why would you want to only take one type of card?

I think there are different options for the contract, mine is just the standard 36 months but they did say there were shorter ones available with different charges, you should ask them direct, if you tell them exactly what you are after they have so many different options.

Hope this helps Danny! Let us know how you get on!

The company i used was acceptcards, i just went on their website but their number is 01422 382 408.

All the best
Rox

[chrisb1357]

Hi all,

I have just started my own PC Support comapny for home users and was also thinking what is the cheapest and best way to take credit cards. As of now i have not needed to take any but i am sure more people would like to pay by card.

Any ideas?

Chris

[JenniOakhill]

Hi
This is the first time I have used a forum and hoping someone will give me some good advise re setting up a card terminal. I have run a busy B&B for 17 years and now find tghe need to set up a card payment method as some countried have withdrawn cheques altogether. My problem is that my business is seasonal and having to pay for 12 months subscription when I will only use it for say 7 months makes it an expensive option. Also, I want to retire some time in the not too distant future, but the contracts you have to take out are for something like 2 or 3 years - the bank needs to reclaim the cost of the terminal ssomehow,. Through a previous participant of this subject, I have been in contact with acceptcards.co.uk but so far they have no easy asnwer. Has anyone out there got one!

[qw3rt7]

@Jenni
Paypal virtual terminal. It allows you to enter card details via an online portal, and take payment that way, much the same as using a physical machine (but no chip & pin obviously). If you need to use it face to face rather than over the phone, just have a laptop at your reception desk.
It costs £20 per month and the fees are quite high, around 4% for a low turnover account, but there is no min contract, so you can turn in off over winter if you like.

[JenniOakhill]

Hello qw3rt7,

Thank you for that. I use Paypal with e-bay sometimes, but I had previously been warned off using it on a regular basis, perhaps because of its high costs. It would certainly work for the overseas visitors who need a payment method. Jenni

[toast8172]

Originally Posted by qw3rt7

@Jenni
Paypal virtual terminal. It allows you to enter card details via an online portal, and take payment that way, much the same as using a physical machine (but no chip & pin obviously). If you need to use it face to face rather than over the phone, just have a laptop at your reception desk.
It costs £20 per month and the fees are quite high, around 4% for a low turnover account, but there is no min contract, so you can turn in off over winter if you like.

Hi,
Just an update regarding paypal virtual terminal. I signed up for this intending to use it in a customer present environment (my wife makes jewellery and sells to people at home), but was told my Paypal that the machine CANNOT be used when the customer is present as it breaches the terms of their agreements with the card companies. It is fine to take payments over the phone, but couldn't have a pc on the desk and take payments when people arrive.

Hope this helps
Paul

[JenniOakhill]

Hello Paul,

I understand what you say - nobody makes it easy for the seasonal or occasional customers. I suppose in your wife's case, customers can always use a mobile phone!

[wi11]

Originally Posted by ROXYANNA

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
:confused:

You may want to look into joining the federation of small businesses - they have discounts on merchant services for members and will also be able to give you good advice.

[redndead99]

If you are a customer at Booker Cash and Carry, you can get a terminal from Elavon which pays directly into your nominated bank account (no merchant account nonsense) and costs just over 1% for credit and about 12p for debit cards.

As far as I can find, definitely the cheapest Ive seen