Taking Payments Query

edited 30 November -1 at 1:00AM in Small Biz & Charities' MoneySaving
11 replies 705 views
Stu_DentStu_Dent Forumite
234 Posts
Hi everyone,

I'm looking into a new business venture and was looking for a bit of advice from those who know!

as part of the business i want people to register their personal details on my website and credit card details too.. Customers would then call me, tell me they want (eg) 8 of Product X, I would then pull up their information and charge them using (for example) Paypals virtual terminal tool..

Now i was wondering, is it legal to hold peoples credit card details like this? are there any other options?

Im very new to this and its in very early stages at the moment so please treat me kindly! :)

thank you

Stu :)
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Replies

  • Stu_Dent wrote:
    Hi everyone,

    I'm looking into a new business venture and was looking for a bit of advice from those who know!

    as part of the business i want people to register their personal details on my website and credit card details too.. Customers would then call me, tell me they want (eg) 8 of Product X, I would then pull up their information and charge them using (for example) Paypals virtual terminal tool..

    Now i was wondering, is it legal to hold peoples credit card details like this? are there any other options?

    Im very new to this and its in very early stages at the moment so please treat me kindly! :)

    thank you

    Stu :)

    I think you'll run into all sorts of problems to be honest. The first is I have doubts people will leave credit card details without it being secure. To get it secure is going to be another issue. I also think you'll need people to give agreement for you to hold their card details as I would think it falls under the data protection act.
  • hmmm, the problem i have is that i havent got the most website creation experience to be perfectly honest..

    I think i could get people to leave credit card details as long as its secure but im not sure how to make it secure and furthermore how i would go about extracting peoples credit card details from the system and charging them..

    thanks for your reply, it really is appreciated,

    Stu:)
  • aeuerbyaeuerby Forumite
    782 Posts
    If it was me I wouldn't want to leave my credit card details with a stranger and then have to ring up and order. That rather defeats the object of shopping online.

    The virtual terminal as I understand it is for when customers don't want to order on-line.

    Why not just intergrate Paypal's checkout into your website?
  • AstarothAstaroth Forumite
    5.4K Posts
    ✭✭✭✭
    I am confused why you are getting people to phone after entering their credit card number

    You certainly can keep peoples card numbers on file but must ensure that people are aware of the fact you are storing it, what purpose you can use it for and ensure that it is held securely.

    Personally would consider reviewing your business model, it is a very odd one and I imagine would put people off. If you want to be phone rather than internet orders why not just get people to call in the first place rather than introducing the hassle of storing card numbers pre order phase.
    All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
    No Advertising or Links in Signatures by Site Rules - MSE Forum Team 2
  • martindowmartindow Forumite
    9.2K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    You need to be registered with the information commissioners at 35 pounds a year
    http://www.ico.gov.uk/
    if you are storing any information such as names and addresses (not just card details).
  • Thank you for all your replies

    I know that it seems strange but there is a reason its just that im anxious to reveal my business because it hasnt been done before and i havent got it up and running yet..

    I would have a website to provide information and allow users to register and thats all.. Obviously i'd have to get the security etc sorted because i completely agree, no one would want to leave credit card details with a stranger..

    Im just not sure as to how i could get someone to tell me they want (eg) 8 of product x and a way in which i could charge them..

    and also, i guess im going to have to register a company name, get tax charged and all that..

    Stu
  • nickj_2nickj_2 Forumite
    7.1K Posts
    how about talking to the small business manager at your bank
  • this op is VERY similar to a question put on the uk business forums, in which the poster was told no way, not now, not ever will a small scale operation be allowed to have a system that stores personal financial information.
    why on earth would you need it?
    my merchant account virtual terminal stores that info, it is secure and I have to log into it securely, which is the right way to do it surely?
    can you imagine the cost and potential hassle of getting the sort of licence needed for this?
    even Sainsburys' bank uses worldpay for their payment system!
    "There is a light that never goes out"
  • Stu_DentStu_Dent Forumite
    234 Posts
    windswept wrote:
    my merchant account virtual terminal stores that info, it is secure and I have to log into it securely, which is the right way to do it surely?

    hi windswept,

    this sounds very interesting actually.. from what i understand from what you say your virtual terminal saves peoples credit card information, is this right?

    The basis of the business is the ease in which the customer can use it, and thats what makes it different (and hopefully a success).. People can literally call me say (eg)" i want X amount of this" i can charge them remotely and send them the item.. this means that they dont need to give me any credit card details etc all they need to do is register once and thats it..

    i do realise that because im not giving all the information its hard for many of you to comment so i do apologise but thank you for your responses...

    finally what topic on the uk business forums because maybe my question has been answered there?

    Stu :)
  • windsweptwindswept Forumite
    1.4K Posts
    It only saves saves the information so I can do a refund or check the details, it does not store them to be used by me or the customer again, each transaction has an individual id number, so even if a customer ordered from me every day for a week, the card details would still have to be input for each transaction.
    I honestly don't think that what you want to do re. keeping cc. details on your own system is possible without some massive security encryption/ security-related checks and would undoubtably involve some sort of financial license being needed. If major banks can be hacked, what chance does someone with a normal pc. however well protected, have of being secure?
    the security just on something like the it dept. of the council offices where I work, is mind boggling, secure servers, encryption databases etc.etc. huge multi-layer protection is vital.
    "There is a light that never goes out"
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