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.

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 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

  • 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

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, terminal rental fees, duplicate statement fees, early termination fees etc

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 Commidea (Payment Service Provider).

Once you have provided Commidea 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.

Commidea's Top Tips

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. Commidea 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.

Tip: You do not have to use the card payment terminals, 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 Commidea will often provide better value, more flexible and more secure alternatives to the devices on offer from your acquirer.

Tip: Commidea can offer a range of benefits that make card processing easier and more beneficial to the merchant, these include:

  • IP based terminals which are much faster and reliable at processing transactions than terminals 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

  • Commidea utilises the latest terminals and invest in its advanced processing infrastructure to streamline card payment processing

  • Commidea offer the ability to provide settlement with all UK acquirers

  • Because Commidea solely 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 Commidea please contact us or call 08444 828 250.

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