Setting Up A Merchant Account

Setting up a
Merchant Account
Setting up a Merchant Account
If you want to process debit or credit card transactions via a
’Chip and PIN’ machine, website, fax, telephone or mail order,
you will need a ‘merchant account’ appropriate to your needs.
There are currently a number of companies
in the UK offering merchant account
services to businesses looking to accept
card payments. These are often referred
to as ‘acquirers’ and most are subsidiary
companies of, or linked to, the major high
street banks.
• Your business type
i.e. what goods and
services do you sell?
• Where do you sell
them? From a shop?
Online via a website?
Over the phone?
• Your business history
and performance
• Your forecast sales
turnover
• Your expected average
transaction values and
volumes on credit and
debit cards
The acquirer will request a range of
information from you to enable them to
make a decision as to whether they can
provide you with a merchant account and
thus card payment facilities. This may
include the following questions:
• Your transaction
frequencies
• The proportion of
card transactions as a
proportion of total sales
• How and when you
deliver your goods or
services e.g. do you
take payment at the
point your customer
places an order, but
deliver the goods at a
later date?
The whole process of opening a merchant
account will usually take between one and
four weeks. You may also need to open a
separate “Internet Merchant Account” if you
wish to accept card payments online from
your website.
Charges
The charges you may incur for having a merchant account may include:
Application or Set-Up Fee: This is the fee
levied by the acquirer for processing your
application and setting up the merchant
account. Some providers may waive this
fee
Merchant Service Charge: The fees
levied by the acquirer for processing
debit and credit cards. These are usually
a flat fee for debit card transactions and/
or a percentage fee based on the sale
transaction for credit cards
Once you have a merchant account your
acquirer will provide you with a ‘merchant
agreement number’, this is the number you
require to set up an account with VeriFone.
Chargeback Fees: The fee levied by
your acquirer for processing a chargeback
where a cardholder is disputing a
transaction
Sundry Fees: Acquirers will also levy
other fees associated with the merchant
account e.g. address verification fees,
device rental fees, duplicate statement
fees, early termination fees etc
Once you have provided VeriFone with
your merchant agreement number the rest
of the process is simple and we can guide
you through it step by step to get you on
your way to processing card transactions.
VeriFone’s Top Tips
Tip
Tip
Shop around for your merchant
account. The fees vary for each
acquirer so be sure to look for the
best deal. The acquirer does not
have to be linked to the same bank
as your personal or business bank
account. VeriFone works with all
the UK acquirers so it will make no
difference as to which acquirer you
choose, enabling you to obtain the
most competitive rates.
You do not have to use the card
payment devices, often referred to
as the POS (Point Of Sale), which
the acquirer may look to provide. We
recommend you shop around, as a
Payment Service Provider, such as
VeriFone will often provide better
value, more flexible and more secure
alternatives to the devices on offer
from your acquirer
Tip
VeriFone can offer a range of benefits
that make card processing easier and
more beneficial to the merchant, these
include:
• IP based devices which are much
faster and reliable at processing
transactions than devices using
standard phone line connectivity
• No dedicated or shared phone line is
required
• Value added services available for
the merchant such as loyalty card
schemes, mobile vouchers and
consolidated, real-time web reporting
• VeriFone utilises the latest devices
and invest in its advanced processing
infrastructure to streamline card
payment processing
• VeriFone offer the ability to provide
settlement with all UK acquirers
• Because VeriFone focuses on card
processing, they are experts in this
area so are better equipped to offer the
merchant a more dedicated, reliable
and flexible service
For additional information on the full range of benefits available from VeriFone please contact us:
Tel: 08444 828 200 or email: ocius.enquiries@verifone.com