What is a Merchant Account what how can it help my Business?
A merchant account enables businesses to accept payments for services or goods via credit and debit cards. Merchant accounts can be set up through your bank or through an independent sales organization (ISO) but, either way, your merchant account will require a payment service provider.
The payment service provider or PSP transfer transaction the details of your customers on to your merchant account provider to be authorized and, once the transaction goes through, will send a confirmation to you. Some banks offering merchant accounts also provide this service but it is entirely up to you whether you opt for the bank's PSP or whether you find an independent provider. You will need to bear in mind that both parties will charge set up fees and transaction fees but, more often than not, an independent payment service provider will offer much more reasonable rates than a bank
Why not use our free quotation service above to find the Merchant Account rates from a variety of top UK suppliers and compare quotes from companies in your area that are specifically tailored towards your business model.
Where can I set up a Merchant Account?
You will find that the majority of well known or high street banks in the UK offer a merchant account service but their fees are often significantly higher than an independent sales organization or ISO. It's well worth going online and searching through the different independent sales organizations to find one that suits your specific business requirements and budget.
Compare Merchant Account Rates
Many sites will be more than happy to give you advice on the most appropriate ISO for your needs and there are also some excellent merchant account comparison sites which will give you a guide to the types of services you can expect as well as a guide to the rates charged by merchant account providers. Setting up a merchant account can cost anywhere between £90 and £300 and there will also be additional fees for each credit card transaction at between 1.6% and 2.8% and between 20p and 50p for each debit card transaction. Make sure you shop around to get the best deal and remember that if you are intending to use an independent payment service provider you will also need to add this factor into the total costs too.
POS Equipment
The point of sale equipment or POS equipment refers to the equipment you will need your end to carry out the customer's transaction ie: the terminal. The terminal can be a handheld, portable console or a fixed terminal, depending on which design is most suitable for your type of business, and the customer's card is simply inserted into the slot, the customer's total cost will come up on the screen for the customer to check, the pin number is typed in and the transaction then goes to the customer's bank to be verified.
Customer Benefits
These days most transactions are made via credit or debit card so merchant accounts are an absolute necessity for any trading business. The transaction is generally a quick, smooth and simple operation, providing the PSP or payment service provider isn't overloaded, and the customer also has the option of a cashback facility which allows them to request a desired amount of cash which is then added onto their total and debited from their bank account along with the cost of their purchase. This is a very useful and convenient tool and enables the customer to withdraw a specific amount without having to take a trip to the cash point of bank.
