Home Page
   Articles
       links
About Us    
Traders        
Recipes            
Latest Articles
Accepting Credit Cards
Page Previous  1, 2
 
Post new topic   Reply to topic    Downsizer Forum Index -> Finance and Property
Author 
 Message
jema
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 26603
Location: escaped from Swindon
PostPosted: Thu Mar 17, 05 2:55 pm    Post subject:  Reply with quote    

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
PostPosted: Mon Mar 21, 05 4:59 pm    Post subject: Reply with quote    

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
PostPosted: Mon Mar 21, 05 5:06 pm    Post subject: Reply with quote    

Thanks Vic, That is very helpful. i might give them a call.

dougal



Joined: 15 Jan 2005
Posts: 7184
Location: South Kent
PostPosted: Mon Mar 21, 05 5:44 pm    Post subject: Reply with quote    

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: 26603
Location: escaped from Swindon
PostPosted: Mon Mar 21, 05 7:48 pm    Post subject: Reply with quote    

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
PostPosted: Mon Mar 21, 05 11:03 pm    Post subject: Reply with quote    

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
PostPosted: Tue Mar 22, 05 9:49 am    Post subject: Reply with quote    

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
PostPosted: Tue Mar 22, 05 2:42 pm    Post subject: Reply with quote    

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: 41834
Location: North Devon
PostPosted: Tue Mar 22, 05 2:44 pm    Post subject: Reply with quote    

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: 12908
Location: North Devon
PostPosted: Tue Mar 29, 05 7:07 pm    Post subject: Reply with quote    

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.

Post new topic   Reply to topic    Downsizer Forum Index -> Finance and Property All times are GMT
Page Previous  1, 2
Page 2 of 2
View Latest Posts View Latest Posts

 

Archive
Powered by php-BB © 2001, 2005 php-BB Group
Style by marsjupiter.com, released under GNU (GNU/GPL) license.
Copyright 2004 marsjupiter.com