Accepting Credit Cards

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Accepting Credit Cards
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twoscoops

Joined: 28 Oct 2004
Posts: 1924
Location: Warwickshire

Posted: Thu Mar 17, 05 1:31 pm Post subject:
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
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 28247
Location: escaped from Swindon

Posted: Thu Mar 17, 05 1:33 pm Post subject:

Twoscoops wrote:

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.

I think you are right about there being little practical choice in the matter these days.

tahir

Joined: 28 Oct 2004
Posts: 45695
Location: Essex

Posted: Thu Mar 17, 05 1:36 pm Post subject:
Like you say you will probably take a large proprtion on cards, Visa, Mastercard and Switch will cover 99.99% of all customers

joker

Joined: 08 Nov 2004
Posts: 188
Location: hiding

Posted: Thu Mar 17, 05 1:38 pm Post subject:
Its best to go throgh the people you you do your buisness banking with I use HSBC personally

twoscoops

Joined: 28 Oct 2004
Posts: 1924
Location: Warwickshire

Posted: Thu Mar 17, 05 1:54 pm Post subject:
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
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Joined: 28 Oct 2004
Posts: 28247
Location: escaped from Swindon

Posted: Thu Mar 17, 05 2:55 pm Post subject:

Twoscoops wrote:

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.

I figure 2%-4% is what you are looking at

But this is one you simply have to get over.

Vic

Joined: 16 Feb 2005
Posts: 387
Location: Sherborne, Dorset

Posted: Mon Mar 21, 05 4:59 pm Post subject:

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...

twoscoops

Joined: 28 Oct 2004
Posts: 1924
Location: Warwickshire

Posted: Mon Mar 21, 05 5:06 pm Post subject:
Thanks Vic, That is very helpful. i might give them a call.

dougal

Joined: 15 Jan 2005
Posts: 7184
Location: South Kent

Posted: Mon Mar 21, 05 5:44 pm Post subject:

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.

jema
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 28247
Location: escaped from Swindon

Posted: Mon Mar 21, 05 7:48 pm Post subject:

dougal wrote:

Banks *love* small businesses - the same way foxes love chickens...

It is like Politicians, they are all genuinely interested in people, but then fleas are interested in dogs

Pilsbury

Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex

Posted: Mon Mar 21, 05 11:03 pm Post subject:

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.

twoscoops

Joined: 28 Oct 2004
Posts: 1924
Location: Warwickshire

Posted: Tue Mar 22, 05 9:49 am Post subject:
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

Joined: 09 Dec 2004
Posts: 183
Location: Under water

Posted: Tue Mar 22, 05 2:42 pm Post subject:
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.

sean
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 42219
Location: North Devon

Posted: Tue Mar 22, 05 2:44 pm Post subject:
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
Downsizer Moderator

Joined: 29 Oct 2004
Posts: 12918
Location: North Devon

Posted: Tue Mar 29, 05 7:07 pm Post subject:
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.

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