A merchant account is a special type of business bank account that allows you to securely accept credit and debit payments. It acts as a middleman between your business's bank and the bank your customer uses to make their card purchases.
A merchant account is needed to facilitate the movement of money from your customer's bank account to your bank account so, if you want to take electronic payments, you need to get yourself a merchant account.
Merchant accounts come in all kinds of shapes and sizes. Some are designed for small businesses and some for large businesses. Recently, some companies have emerged offering alternatives to conventional merchant accounts, whereby they process your payments and send the money to you without ever using one. Companies like Square and PayPal have dominated this area of the market and have become popular choices amongst small businesses across the country, this is largely due to their simplicity and lack of background checks.
While not merchant accounts in the traditional sense, companies like these do still operate like merchant accounts in that they process your payments and pass them along to you minus a transaction fee. Their lack of credit checks, or commitment to work with as many businesses as possible, makes them viable options for both businesses that are just starting out, and those that have a poor credit history.
Many of the traditional payment processors are likely to turn down applications that come from businesses with a bad credit history so, for these reasons and more, businesses often look to the alternatives available.
If your business has a poor credit history, you may be better off looking for a payment processor that won't do a credit check. There are, as you will see below, several providers who are happy to give you a merchant account like this, and choosing the best one for your business is an important decision.
The fees a payment processor charges will be your main consideration, but other factors like ease of use, trustworthiness, and suitability should also be high on your list of considerations. We've chosen just four payment processors for you to explore; these are by no means the best four available, they're just to give you an idea of what's available.
Now you've read the above, and you know that a bad credit score doesn't mean you can't get a merchant account, it's time to take the next step.
Making that next step has never been easier. Just provide us with some basic information about your business, and we can do the hard work for you. We collect some quotes together from various merchant account providers so you can choose the one that best suits 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.
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.
A 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.