| Archive for Downsizer For an ethical approach to consumption |
| twoscoops |
Accepting Credit CardsDoes anybody here accept credit or debit cards in thier business? I'm planning on doing this, if I can get my business going, but have no idea of who supplies the machines and takes the money. What should I be looking out for? how long does it take for me to get my hands on the money? What will it cost me? I doubt i'd be able to operate in the way I want without accepting credit and debit cards, so it is quite an important issue! |
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| Bugs |
Twoscoops, Startups.co.uk is a good resource, do you know it? Here's an article on credit cards, for example (take care though as a lot of the advice is aimed at online businesses):
http://www.startups.co.uk/YZsRiFZoS2j_3g.html I work for a smallish service company, and we had to start offering credit card services because so many customers demanded it. In the unlikely event that others here can't help, I'll try and ask for you. |
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| twoscoops |
Thanks Bugs, that looks like a good site, and I hadn't seen it before. It is pretty clear that the high street banks can supply card facilities. | ||
| tahir |
Speak to a few different banks before signing up, their charges vary | ||
| jema |
I think I paid £150 for an interent merchant account. |
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| twoscoops |
I think the percentage per transaction will be a major factor. That could seriously affect my gross profit. | ||
| moogie |
Is it an internet based business because if you want ot try credit cards before committing to spending the money you can always get a paypal account like you use on ebay and set it up as your payment method on the website. That is what I did with mine to see if it was worth spending the money, i.e. did the orders justify the outlay. | ||
| Treacodactyl |
Not sure about the exact % but if items are purchased on credit cards and sent via the post the card should insure the item.
You could also charge a credit card surcharge like many other people. |
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| sean |
If you reckon you can get away with it then steer clear of taking Amex and Diners, they charge higher percentages than the other cards and take longer to pay you. | ||
| tahir |
It's not just that though, there are loads of different charges that they may apply, terminal hire is one. |
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| twoscoops |
I know, but it is a retail shop and it would be very difficult not to accept cards. I really don't want to accept Amex and diners - I reckon anybody who has those has probably got a Visa or Mastercard as well. I reckon card payments might be quite a high proportion of sales, so I want to be able to offer it and not pay through the nose for it. | ||
| jema |
I think you are right about there being little practical choice in the matter these days. |
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| tahir |
Like you say you will probably take a large proprtion on cards, Visa, Mastercard and Switch will cover 99.99% of all customers | ||
| joker |
Its best to go throgh the people you you do your buisness banking with I use HSBC personally 
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| twoscoops |
And what are they like? I'll be looking for a hefty overdraft, possibly some working capital and I want to keep transaction charges down. I hate the thought of the bank taking a %age of my hard-earned money just for processing. | ||
| jema |
I figure 2%-4% is what you are looking at  But this is one you simply have to get over.
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| Vic |
I think most terminals and processing are operated by Streamline (www.streamline.com) and they charge you to rent (or buy) a terminal, then either a percentage of the amount of a fixed fee, eg for Mastercard its 2.45%, but for every switch card transaction its 20p (which is why a lot of small shops simply won't take credit/debit cards for less than a £10). Once its set up, they automatically pay all the monies straight into your account, deducting all their charges first.
the only good thing is that if you follow all their instructions correctly you should be protected against any kind of card fraud. Unfortunately whatever bank you go with you will end paying them what seems like outrageous sums of money for b*ggerall results... |
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| twoscoops |
Thanks Vic, That is very helpful. i might give them a call. | ||
| dougal |
Transaction charges are generally a fixed number of pence for *debit* cards - and some % for *credit* cards. (The rates depend on who you are, and so ought to be negotiable.) Amazingly they'd like to charge a higher % for a few high value transactions than for loads of little ones - go figure!
Also be aware that if a credit card customer is dissatisfied (or even plain bolshy) they can, up to six months later get the card co to deny you payment. Even after you think you've been paid! (They just knock it off your balance and leave you to chase the customer for some other form of payment. Fortunately, hardly any customers... They will also likely want to "rent" you the machine for a fixed monthly cost. And may charge a higher % on "customer not present" transactions... (yes, and Amex/Diners) Banks *love* small businesses - the same way foxes love chickens... IIRC the Federation of Small Businesses offered a reasonable card handling service. |
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| jema |
It is like Politicians, they are all genuinely interested in people, but then fleas are interested in dogs 
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| Pilsbury |
When we ran our shop we accepted cards and used streamline and loydds/tsb which wasnt a bad combo but that was a few years ago.
You will have to pay out a % for the privalege of taking cards but so many more people will spend if they can put it on a card and if you only take cash then people can only spend what they have so no impulse buying, we had one guy come in for 3 tins of paint at 99p and leave with a £200 airbrush compressor kit. I have heaqrd a sneaky rumor that some Building societys do very not publisized business accounts, One i heard of was Nationwide, you could only write 6 cheques a month on the account and make a limited number of transactions but it was compleatly free if you had more than £1000 in there, the way the guy who told me about it got round the limits on cheques was to pay a big one into his personal account and pay suppliers from there, dont know if its still around but might be worth a look. |
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| twoscoops |
There are accounts like that, Pilsbury. I have thought about using my personal account, but will the bank cotton on to it? I'll be working as a sole trader, which might make it easier. Also, if you are only allowed a certain amount of payments in do credit/debit card payments count? | ||
| Fullup |
Be careful using your personal account for a business. You will open up your account to the inland revenue if they decide to do an inquiry. Much better to start off with a completely separate account for business use only.
Have a look at Alliance and Leicester I think they do some low/no cost busines accounts. |
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| sean |
I think Abbey do free business banking. I know Alison was looking into this fairly recently, it's probably worth picking her brains on the banking costs. | ||
| alison |
We have gone with the Nationwide option.
You have to open the account with £5000, but you can then let the balance drop. We combined this with our regular business account with nat west, but use the credit/debit card to pay all bills, and clear the balance at the end of the month with only one cheque. |