A merchant account is an agreement between a merchant (you) and an acquiring bank.
This allows the merchant to accept and process electronic payments via credit and debit cards.
If your card machine accepts contactless payments then you will also be able to accept and process payments from phones and other smart devices.
Search and see if you could save on the very best merchant account, simply complete our 2-minute form by clicking the "Start Free Quote" button below.
We look forward to helping you.
If your business still operates a cash-only policy when it takes payments, or you're looking to upgrade the cash machines you've already got, choosing the right card reader for your business can be a trickier job than it sounds.While card machines aren't the most glamorous thing to spend your money on, they are an essential part of your business. Recent years have seen them grow in popularity and now many people use their cards to pay for the vast majority of their goods and services. You, then, need a reliable, useable, and cost-effective card machine to ensure your business is not only able to take payments by card but also take them quickly and easily with a device you understand. The Best Card Machines for Small BusinessesDifferent machines offer your business different benefits, and knowing which is the best choice isn't always clear. That's why we've done most of the research for you, and compiled this list of some of the best card machines on the UK market. We've compared them, so you don't have to. As you're probably aware, card machines come in a variety of shapes and sizes. Some are portable and pocket-sized, while others are large and fixed to your business's countertop. We've covered all bases in this list, so you'll find a mix of different types of card machines.
How Much Do Business Bank Accounts Cost?What is a Business Bank Account?Business bank accounts enable you to separate your personal and business expenses; creating a convenient way to organise your tax and bookkeeping. This makes paying taxes easier and means your files are clear and easy to understand. There are several advantages to having a business bank account. For a deeper dive into what a business account can offer you and your business, read on. In this article, we outline the costs associated with opening and maintaining a business bank account and explain what you need to get started. How Much Does A Business Account Cost?Each bank has its own set of criteria for opening a business bank account. It's important to evaluate and compare the available options to find the best business checking account that suits the needs of your business. If you already have a personal account with a particular bank, there might be special offers or benefits available to you if you choose to open a business bank account with the same one. Some banks require an initial deposit or a minimum balance, while others impose varying fees for different types of transactions, such as monthly service fees, excess transaction fees, or cash handling fees.
Direct Debit ExplainedA direct debit payment is a payment taken automatically from a customer's bank account periodically. It's often offered as a payment method by businesses that provide subscription services or other services that require an ongoing commitment from a customer. The main benefit of direct debit payments, for businesses and consumers, is their simplicity. Neither your business nor the customer has to worry about remembering the payment, so payments aren't missed and the relationship between you and your customers is more easily managed. How to Take Direct Debit PaymentsThe way direct debits work is fairly simple. Your customer's payment is taken from their account automatically, usually on a predetermined date, and your business then continues to provide the customer with your service. You need an agreement from your customers to take payments automatically, so make sure it's clear what they are opting in for. You don't want your customers to be confused about what it is they've committed to. You also need to be eligible to take direct debit payments, which means you need to get a Service User Number (SUN) - a six-digit number businesses use to get paid via direct debit. You can get a SUN directly from your bank, provided you meet its criteria. Once your bank and your customers have given you the green light to take payments automatically, you just need to set up the frequency and size of your payment. The most important thing to remember about this part is that your customers must be given 10 days' notice before each payment is taken. The notice needs to detail when the payment will be taken and how much it will be. Benefits of Taking Direct Debit PaymentsAs mentioned above, the most obvious benefit of accepting direct debit payments is the simplicity it brings to the hassle of keeping on top of recurring payments. That's not where the benefits of direct debit payments though. Other benefits include having greater predictability, greater retention, and better relationships with your customers. Having a better idea of exactly how much revenue you've got coming in from your customers and knowing exactly when you'll be receiving it can make your business's general finances more predictable and therefore more manageable. You can also use this information to inform future decisions about your business growth. Having customers committed to your business on an ongoing basis also means they're more likely to stick around as they already know they like what you provide, making the job of your CRM that much easier. With customers already engaged heavily with your business and your brand, they're right where you want them to be to develop your relationship with them. You can use their pre-existing interest to market more of your services, offer special discounts or offers, or reward their loyalty with a giveaway. These things will help keep their engagement with your brand nice and high.
Complete our simple assessment form (takes less than 2 minutes).
We search services from the UK's leading merchant account providers (all for free and with no obligation).
Compare a range of quotes and see how much you could save.
Our service is trusted by thousands of businesses across the UK
Compare the best merchant account service providers with one simple form.
Challenge us to beat any existing arrangement.
Always free to use and with no obligation.
If your business still operates a cash-only policy when it takes payments, or you're looking to upgrade the cash machines you've already got, choosing the right card reader for your business can be a trickier job than it sounds.While card machines aren't the most glamorous thing to spend your money on, they are an essential part of your business. Recent years have seen them grow in popularity and now many people use their cards to pay for the vast majority of their goods and services. You, then, need a reliable, useable, and cost-effective card machine to ensure your business is not only able to take payments by card but also take them quickly and easily with a device you understand. The Best Card Machines for Small BusinessesDifferent machines offer your business different benefits, and knowing which is the best choice isn't always clear. That's why we've done most of the research for you, and compiled this list of some of the best card machines on the UK market. We've compared them, so you don't have to. As you're probably aware, card machines come in a variety of shapes and sizes. Some are portable and pocket-sized, while others are large and fixed to your business's countertop. We've covered all bases in this list, so you'll find a mix of different types of card machines.
How Much Do Business Bank Accounts Cost?What is a Business Bank Account?Business bank accounts enable you to separate your personal and business expenses; creating a convenient way to organise your tax and bookkeeping. This makes paying taxes easier and means your files are clear and easy to understand. There are several advantages to having a business bank account. For a deeper dive into what a business account can offer you and your business, read on. In this article, we outline the costs associated with opening and maintaining a business bank account and explain what you need to get started. How Much Does A Business Account Cost?Each bank has its own set of criteria for opening a business bank account. It's important to evaluate and compare the available options to find the best business checking account that suits the needs of your business. If you already have a personal account with a particular bank, there might be special offers or benefits available to you if you choose to open a business bank account with the same one. Some banks require an initial deposit or a minimum balance, while others impose varying fees for different types of transactions, such as monthly service fees, excess transaction fees, or cash handling fees.
Direct Debit ExplainedA direct debit payment is a payment taken automatically from a customer's bank account periodically. It's often offered as a payment method by businesses that provide subscription services or other services that require an ongoing commitment from a customer. The main benefit of direct debit payments, for businesses and consumers, is their simplicity. Neither your business nor the customer has to worry about remembering the payment, so payments aren't missed and the relationship between you and your customers is more easily managed. How to Take Direct Debit PaymentsThe way direct debits work is fairly simple. Your customer's payment is taken from their account automatically, usually on a predetermined date, and your business then continues to provide the customer with your service. You need an agreement from your customers to take payments automatically, so make sure it's clear what they are opting in for. You don't want your customers to be confused about what it is they've committed to. You also need to be eligible to take direct debit payments, which means you need to get a Service User Number (SUN) - a six-digit number businesses use to get paid via direct debit. You can get a SUN directly from your bank, provided you meet its criteria. Once your bank and your customers have given you the green light to take payments automatically, you just need to set up the frequency and size of your payment. The most important thing to remember about this part is that your customers must be given 10 days' notice before each payment is taken. The notice needs to detail when the payment will be taken and how much it will be. Benefits of Taking Direct Debit PaymentsAs mentioned above, the most obvious benefit of accepting direct debit payments is the simplicity it brings to the hassle of keeping on top of recurring payments. That's not where the benefits of direct debit payments though. Other benefits include having greater predictability, greater retention, and better relationships with your customers. Having a better idea of exactly how much revenue you've got coming in from your customers and knowing exactly when you'll be receiving it can make your business's general finances more predictable and therefore more manageable. You can also use this information to inform future decisions about your business growth. Having customers committed to your business on an ongoing basis also means they're more likely to stick around as they already know they like what you provide, making the job of your CRM that much easier. With customers already engaged heavily with your business and your brand, they're right where you want them to be to develop your relationship with them. You can use their pre-existing interest to market more of your services, offer special discounts or offers, or reward their loyalty with a giveaway. These things will help keep their engagement with your brand nice and high.
Although a merchant account is a bank account it isn't a conventional one and is only available to businesses.
Think of it as a secure holding pen where the funds sit whilst the customer has their bank account checked to make sure that they have enough money to pay for the transaction.
Once this is all confirmed, the merchant account receives the money and then forwards it to your bank account.
All modern businesses should be equipped with a merchant account if they want to be successful.
Debit cards have become more popular in recent years, with many people now choosing them as their preferred way to pay. If you want to offer your customers what they want, you need to be able to offer card payments.
So in a nutshell, yes, you need a merchant account.
Your customer uses their credit/debit card at your specific terminal. This can be physically at your premises or with a payment gateway online.
The details of the transaction are then passed to the customer's card via your specific merchant account provider.
The card issuer then checks the details of the payment and either approves or rejects the transaction.
Once the card issuer approves the transaction, the merchant account begins the transfer into your account.
Although the process of how a merchant account works is fairly straightforward, there are a few things that you will want to consider when choosing your provider and if they're the best choice for your business.
This will be how much you will pay your merchant account provider to use their service.
There is a more in-depth look at the different types of fees available later on, which can be found here.
Some people like having longer contracts so they don't have to worry about constantly renewing them and as the old mantra goes, 'if it ain't broken, don't fix it.'
Others however prefer shorter-term deals where it could be possible to switch providers on a semi-regular basis and potentially get a better deal.
If there are technical issues how quickly will they be resolved and will you be compensated for any downtime?
If you've been underpaid how quickly can you get the money into your account?
If you need to speak to someone directly, are they easily contactable and are they based in the UK?
You may have thought you had found your ideal provider but if their customer service is terrible then it may be worth finding someone else.
Everything may seem perfect on paper but then all of a sudden you're faced with hidden fees that don't make that great deal seem so appealing anymore.
Common hidden fees include things such as set up & exit fees or terminal rental costs that may not be stated in the initial chats with providers.
You want things to be as easy as possible and don't want to waste your time figuring out an overly complicated card reader.
Sometimes you just need an app on your phone and a card reader and you're ready to start taking payments.
There is no one set answer to this question as there are many factors that come into play.
Sometimes you may get more favourable rates if you are a larger business and process more payments.
The most prevalent factor however is the type of pricing model you decide to select. Below is a brief description of these models:
Also known as cost-plus pricing or pass-through pricing.
This breaks pricing down into two elements:
The interchange | The cost from the issuing bank to you via your merchant account provider. |
---|---|
The plus | The fees your Merchant Account provider charges. |
If the issuing bank changes its rates then your inter-charge plus costs will also change to reflect the increase or decrease of the rates.
Charges a flat rate for payment processing each month instead of by transaction.
Think of it as bulk buying at a wholesale price instead of buying items individually at retail price.
For some businesses, this could be the most cost-effective pricing, but for others, it may not so this is something worth taking into account when selecting a provider.
Your rates are charged at a percentage of each transaction you make or the cost of said transaction.
Some may charge you a flat rate regardless of the cost & what card is used whilst others may have varying rates.
As we've said a merchant account is essential to any business looking to be a success in the modern day and you might be asking yourself how you can get one for yourself.
Luckily it couldn't be easier. All you have to do is click "Start Free Quote" below, answer a few questions about your business and you'll receive a selection of quotes from some of the country's leading providers.
Which provider you think is best for your business is entirely up to you.