Merchant Account and Payment Gateways costs
The cost of this service is minimal. There are no upfront deposits, no minimum monthly volumes to maintain, and no extra processing fees to pay to the bank. You may pay setup and monthly fees, then a small fee for processing each of your transactions.
Payment is applicable once the account has been set-up. The Standard account settles what you are owed (minus the processing fees) straight into your bank. With regards to the High risk account, you will be sent a monthly invoice for the fees. This is also the same for the annual fee associated with the High-Risk Merchant Account (this will be invoiced once the account is live).
What is a transaction and gateway fee?
Visa, MasterCard and bank card issuing associations charge a percentage of the sale for the use of their cards and this amount is referred to as a transaction fee. The percentage paid by the merchant may vary depending on the monthly sales volume, the average sale size and whether a transaction is processed with or without the card being physically present.
A gateway fee is applied by the transaction processor to cover the costs of receiving and processing the transaction. While a transaction fee is a contribution for the convenience of accepting credit card payments, a gateway fee pays for the use of the infrastructure to receive payment information, request authorisation from the customers bank, transmit the authorisation information to the merchant and to facilitate payment of the merchant.
Can I be a sole trader or individual?
Yes we can provide merchant accounts for sole traders or individuals. However you must have a business bank account set-up and can not use personal ones.
Please be advised that if you are a sole trader it will be your personal name trading as (i.e – John Smith t/a ABC Industries) that appears on the customers statement. However with our High-Risk Account the message that appears on the cardholder’s credit card statement can be chosen by you and doesn’t have to be the trading name.
How do I get paid?
By providing your payment information, you permit funds owing from your merchant account to be automatically deposited, be electric funds transfer, into the bank account that you specify.
Bank accounts can be located anywhere in the World, however they must be in the correct company name and not a parent or subsidiary company. Please note that all remittances paid to a bank account outside of the UK (including GBP payments) may incur a Wire Transfer Fee.
When do I get paid?
We Tranxact Ltd panel of payment processors payments are issued daily , 3-7 days in arrears. However, this can be reduced to same day through one of our acquirers. However for non GBP accounts or for more complex business models this may go to weekly.
With our high risk account it depends on trading history and can be either daily, 3 days in arrears
or weekly, 7 days in arrears.
Settlement in GBP to a UK bank account is FREE.
How long does the whole application process take?
Typically anything from 2 – 7 days once you return your signed application forms and any required documents.
Do I need to provide any documents with my application?
Yes, typically proof of your business bank account (eg void cheque or bank statement), proof of director/owner ID (eg copy of passport) and address (eg utilities bill). On some occasions they may ask for copies of your previous card processing statements if you are switching suppliers. Your selected supplier will advise on the precise documents required.
When I switch, how do I terminate my contract?
Payment providers will typically require 30 days notice to terminate contract. Our suppliers will help you with this by providing a template letter you can send to your current supplier. We recommend you do this once your new facility is set-up and tested.
Is there a cost for terminating my current contract?
Merchant accounts and Payment gateway contracts are usually cancellable at short notice (1-3 months) and provided you give appropriate notice then there should be no termination penalties.
Terminal hire contracts usually specify a minimum contract term and if you cancel before expiration of this minimum term then there is usually a termination cost. This cost is normally calculated as the remaining rental payments due up to the end of the minimum term though some suppliers give a discount and others charge an additional “re-stocking fee”.
Although termination costs can be £hundreds per terminal, as a rule of thumb if your monthly cost savings by switching are higher than your monthly terminal hire cost then it is more economic to switch sooner, access the savings and incur the termination cost.
However, there are exceptions where we can help you get out of a contract like we have done for many merchants to date. please contact us to see how we can help you.
Who is my contract with?
No matter where you get your merchant services from, you end up with 2 contracts – one for your merchant account and one for your terminal hire or gateway provider. Our suppliers provide your terminal (and contract directly with you for that) and their merchant acquirer partner will provide your merchant account (and contract directly with you for that). The role of our suppliers is to arrange the set-up of your merchant account, like a broker.