Finding Your PSP
Choosing a Provider
Your choice of provider can be largely decided by which supplier provides the best deal. Only the adult industry and some high risk ventures are restricted in their options.
The first option is to contact your current bank to see what products they offer, as you have a relationship with them and they know your business and trading history. If you are a new business you may find it harder to find a provider and may have to choose a provider such as WorldPay or PayPal who welcome new businesses.
Pricing
Few companies offer set prices for dealing with your websites transactions and even those that do offer figures subject to hearing about your offering.
Contacting a Provider
When contacting a provider they may ask you questions about your business, what you are planning to sell, and your projected sales.
Be sure to haggle with them when they quote you prices as you could get a better deal.
Questions to ask:
- Do they offer an IMA, PSP or combined service?
- What are the monthly fees?
- What are the transactions costs?
- How long do they hold your money before they pay it into your account?
- Are there multiple currencies available? Are there extra costs for this feature?
- Is there any fraud or transaction protection tools?
- Is there any recurring or subscription services? (only required if you have a subscription based business)
- What are the costs for charge backs?
WorldPay
Web: http://www.worldpay.co.uk
Tel: 0870 366 1233
Set-up Fee: £200
Monthly Fee: £30 (Note - £180 fee payable upon application for initial 6 month term, then £30 per month ongoing)
Transaction Service Charges:
- 50p per transaction for UK Debit cards.
- 4.5% on the value of all other transactions e.g. credit and charge cards
Comments: Very quick set-up and application, widely used so integrates with most popular software, new businesses without trading history can apply, can be quite expensive.
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Lloyds TSB & Protx
Web: http://www.lloydstsbbusiness.com /
http://www.protx.co.uk
Tel: 0870 900 2069 (Lloyds), 020 7292 3900 (Protx)
Set-up Fee: £300 (Lloyds), Free (Protx)
Monthly Fee: £25 (Lloyds), £20 (Protx)
Transaction Service Charges: £0 (up to 1,000 transactions)
Comments: Although you have to apply for each service separately, this solution can provide you with high quality, flexible and cost effective payment processing.
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PayPal
Web: http://www.paypal.co.uk
Tel: 08707 307 191
Set-up Fee: Free
Monthly Fee: None
Transaction Service Charges:
For monthly transactions of £0.00-£1,500.00:
- 3.4% on all transactions + £0.20
Better rates can be obtained depending on your monthly volume of transactions.
Comments: Widely used, anyone can apply, can be quite expensive, may require your shoppers to register with them which can be a barrier to sale.
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HSBC
Web: http://www.hsbc.co.uk/1/2/business/online-services
Tel: 0800 731 8921
| Monthly Turnover: |
£1,000 |
£5,000 |
£10,000 |
| Set-up Fee: |
£200 |
£200 |
£200 |
| Monthly Fee: |
£20 per month |
£20 per month |
£20 per month |
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|
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| Transaction Fees: |
Per month |
Per month |
Per month |
| Credit card |
4.6/4.7% |
3.8/3.9% |
2.7% |
| Debit Cards |
48p/49p |
38p/39p |
26p/27p |
Rates are set depending on your monthly volume of transactions, and the type of goods you are selling.
Comments: You must have an HSBC Bank business current account or have had an HSBC Bank card processing relationship for at least a year.
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Barclays
Web: http://www.barclays.co.uk/business/
Tel: 0800 515 462
Set-up Fee:
Running from home premises = £250
Running from Business premises = £150
Monthly Fee: Depending on turnover
Credit card charges = 2-4%
Debit card charges= 20p – 50p
Transaction Service Charges:
For monthly transactions of £0.00-£1,500.00:
- 3.4% on all transactions + £0.20
Internet Monthly Service Charge:
Payment from payment page directly into your business account
A contract and account must be taken out with Barclays (EPQD)
Variable monthly % depending on turnover:
Less £10,000 = 2%
Over £10,000 = 1%
Comments: Account takes three weeks from receipt of initial application, widely used, anyone can apply.
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FastHosts eMerchant
Web: http://www.fasthosts.co.uk/ecommerce/merchant-account/
Tel:0870 888 3600
Set-up Fee: £100
Monthly Fee: £20 per month
Transaction Service Charges: 3.5% per transaction
Comments: This is a new service from one of the largest hosts in the UK, there are no up-front deposits, no minimum monthly volumes and no additional bank processing fees.
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You can use the DTI's free diagnostic tool to calculate the cost of specific options and find out if this electronic payment method is right for you here. |
