Brickweb | Design, Build, Maintain & Manage

How to get a merchant account

What Do I Need To Accept Credit Card Payments Online?

To accept Credit Card Payments online you will need to obtain an Internet merchant account and an Online Payment Services Provider (PSP). Brick will consult with you to give best advice on the providers that suit you best.

An Internet merchant account is an account with a financial institution that enables you to accept payments over the Internet. This is distinct and separate to any merchant account that you may already have with a bank. Before you can accept credit cards, you must obtain an Internet merchant account that will work with the payment method you chose to accept on your Web site. Internet merchant accounts can be from your own bank or any other bank of your choice.

To apply for an Internet merchant account you must first decide who you are going to use to accept payments on your web site as this information will be needed to process your application. Applying for an Internet merchant account will take typically 3-4 weeks.

A Payment Service Provider acts as a gateway between your e-commerce system and the banks. The PSP takes payment details from your customer, checks the details with the appropriate bank, and sends the result of the check back to your system. Aut­ho­riza­ti­on or rejection of the transaction is completed within seconds, so you know whether or not to proceed with your customerґs order. The PSP also takes care of the final settlement of the transaction (i.e. when the money is paid into your merchant account).

There are many Payment Service Providers available to UK based businesses. The main PSPґs for the UK are (Click to launch websites):

* Whereas most payment services providers will only accept online credit card transactions from web sites that have an Internet Merchant account Worldpay and Netbanx do not require you to have one. Worldpay and Netbanx will provide you with an online merchant account if you do not have one with an acquiring bank.

** Barclays EPDQ can only be used with an Internet merchant account from Barclays.

*** You must have an HSBC Bank Business Account or have had an HSBC card processing relationship for at least a year.


How to Choose an Online Payment Services Provider

How much will it cost?

One of the main concerns when choosing an Online Payment Service Provider is the cost. The processing costs for each Payment Service Provider are shown below:

These charges are separate from the charges from your acquiring bank. If you are expecting to process a very large amount of Internet transactions many of the PSPґs (payment service providers) listed below will be will to negotiate a better rate.

Worldpay

£75 setup fee, £150 annual charge, 1.5% - 4.5% by negotiation.

SagePay

SagePay offer two types of accounts, the account you will be able to use, will depend on the number of transactions that you expect to process per month.

Small business service : £20 monthly charge with no transactions costs.

Corporate payment service : fixed costs of 10 pence per transaction.

Secpay

Secpay offer two types of accounts, the account you will be able to use, will depend on the number of transactions that you expect to process per month.

Low volume service : £50 setup fee, £10 monthly charge and 1.9% or 39 pence fixed fee per transaction.

High volume service : £50 setup fee, £20 monthly charge and 1% or 20 pence fixed fee per transaction.

Datacash

Contact Datacash for individual prices.

Netbanx

£500 setup fee and 5% to 10 % per transaction, this rate depends on volume of tran­sac­ti­ons.

Secure Trading

£195 annual fee and 1.5% per transaction.

Barclays EPDQ

Contact Barclays for individual prices.

HSBC Secure EPayments CPI

By individual negotiation, your charges will be calculated according to your specific business needs.

Which bank accounts can I use?

The other thing you will need to know is which acquiring banks each Payment Service Provider supports. The acquiring banks each PSP supports are shown below:

  • Worldpay Bank Direct
    • LLoyds Cardnet
    • Barclays Merchant Services
    • Natwest Streamline Merchant Services
    • HSBC
  • Worldpay WorldDirect *
    • No merchant account needed - WorldDirect package provides both the internet merchant account (IMA) a business needs to trade on the internet and WorldPay's payment processing service.
  • SagePay
    • LLoyds Cardnet
    • Barclays Merchant Services
    • HSBC
    • Natwest Streamline Merchant Services
    • Bank Of Scotland
    • American Express
    • Diners Club Inter­national
  • Secpay
    • American Express
    • Diners Club Inter­national
    • Bank Of Scotland
    • Barclays Merchant Services
    • HSBC
    • Natwest Streamline Merchant Services
    • Ulster Bank
  • Datacash
    • American Express
    • Bank Of Scotland
    • Barclays Merchant Services
    • Girobank
    • HSBC
    • Lloyds TSB
    • Royal Bank of Scotland Group (NatWest Streamline, NatWest In­ter­nati­onal Merchant Services [IMS], Ulster Bank, Clydesdale Bank, Yorkshire Bank)
  • Netbanx
    • Barclaycard Merchant Services
    • Natwest Streamline Merchant Services
    • HSBC
    • LloydsTSB Cardnet
    • Bank of Scotland
    • American Express
  • Netbanx Bureau Service *
    • No merchant account needed.
  • Secure Trading
    • American Express
    • Bank Of Scotland
    • Barclays Merchant Services
    • HSBC
    • Lloyds TSB
    • Natwest Streamline Merchant Services
  • Barclays EPDQ
    • Barclays Merchant Services
  • HSBC Secure EPayments CPI
    • HSBC

*No merchant account needed, this service is suitable for small businessґs that either do not fulfill the criteria to become a direct merchant, or do not wish to go through the application procedure with an acquiring bank.


Please note: The information in this article is correct at the time of writing, the charges and banks account details each payment service provider accepts are subject to change by the payment service provider, see the payment service providers website for full details.