Merchant Accounts for tiny Biz.

edited 30 November -1 at 1:00AM in Small Biz & Charities' MoneySaving
8 replies 1.7K views
ymym Forumite
22 Posts
Does anyone know of a good merchant account (accept credit cards online) for a tiny Internet business? I use Paypal, but potential customers must join Paypal and that puts most people off, (besides, they rip me off). All my Google searching only came up with two poor choices, either a high subscription charge (£120+ per year), or a high one off connection fee (£60-£120+) with very high transaction fees. I could not find anyone who offers low subscription fee and low connection fee. If I new that my business is going to be a success, I would write off the connection fee since over the years it won’t come to much, and look for the lowest transaction charges. I have not tried contacting my bank, but I doubt they offer anything better for first timers. Much appreciated. ???


  • lellielellie Forumite
    1.5K Posts
    ooo I'd love to know the best deals too..

    I use paypal but I'd prefer a cart that didn't require you to sign up for an account to buy anything as it might put users off.. :(
  • Have you had a look at ?

    They seem reasonable to me!
  • SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    I used to work for Alliance & Leciester Merchant Services as a Business Anlayst (but no connection now!)

    Try the big 5 Merchant Service companies: (ask for "Small Corporate Business" dept).

    Streamline (Nat West)
    Alliance & Leicester

    I remember that Alliance & Leicester had lots of small internet based companies as merchant, and set-up fee+commission rates may work out more cost effective tahn using Worldpay etc..Also looks more professional!

    PM me if you want any further advice!

    HTH! ;D
  • Hi,

    You might want to consider Nochex (

    I use them on several of my sites.

    They're UK based, similar to PayPal, but buyers don't have to sign up to join.

    There is also I think that its only $49 USD to sign up. I use them as well on US related sites.

    Hope this helps,


  • Merchant accounts with banks are difficult to get as they normally require at least a years trading history. It's the same with Protx but you still need a merchant account with a bank.

    I understand the problems with PayPal and there is still a risk with chargebacks as with them all. Worldpay is too expensive to set up and run so the best bet does seem to be Nochex. Their fees are cheaper than PayPal (2.6% +20p) AND they guarantee against chargebacks. Also, you do not need an account to use it.

    Certainly worth looking into!
  • aeuerbyaeuerby Forumite
    782 Posts
    We've gone the paypal way - for now - and our customers don't have to sign up for an account with them although they do have to set up a password with paypal. Paypal will then email the customer so they can "activate their account" although the account activation is not necessary in order to pay.

    I believe it's something that paypal are just introducing.

    We are however looking at alternatives like worldpay. We did originally go down the route of merchant account and PROTX (we have only been trading since April but the big banks as mentioned above seem hapy to help!) but every time we were about to sign the contracts some extra charge popped up that we weren't told about. HSBC being by far the worst - plus of course some of them wanted us to have our business account with them which we would be charged for!

    When worked out over the year there is little difference to worldpay fee's and merchant account/gateway fee's.

    So if anyone knows of an alternative to worldpay please SHOUT UP ;D

  • Hi
    I am a totally new to this group. If it has not already been pointed out by others here it might be worth checking Their FREE version is the basket hosted on their site - you simply create links to it. It is advertiser supported. Their SUBSCRIPTION version (£10/= annual fee) allows you to completely customise the look of your basket, they still host and maintain the basket for you.
    If the info is not useful anymore, please accept my apologies.
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  • ymym Forumite
    22 Posts
    Well done kpshah, nice find. I'm going to give it a try.
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