Frequently Asked Questions.

Is it worth my business accepting credit & debit cards?
Yes, in today’s economic environment most consumers and an increasing percentage of businesses expect to be able to use plastic to pay for their goods and services and if your business is unable to do so your likely to lose out on many business opportunities.

What are the advantages of accepting credit & debit cards?
Accepting cards can open up many new sales opportunities, for example telephone, mail order, Internet. It also encourages impulse buying when a customer may not have cash to make an immediate purchase without the opportunity to use a card. There are also accounting benefits as the amount of cash you need to hold will be reduced & cash-flow is improved & book-keeping becomes simpler.

How do I obtain a facility to accept credit & debit cards?
You will need to set up what is known as a merchant account via the merchant acquiring division of any major bank.

To do this you will need to supply the acquiring bank with financial details of your business such as historical and/or forecasted turnover, average transaction values, warranties and/or guarantees offered & distribution channels used.

You will also need a business current account as acquiring banks by law can only transfer payments made by your customers to your merchant account into a business current account.

The acquiring bank which you choose to use can supply the equipment you will require. Usually this is in the form of an electronic terminal (often referred to as a PDQ machine) into which cards are inserted or swiped for which they will charge monthly rental from between £10 & £25 per month depending on the bank used and the type of terminal required (for instance restaurants requiring a portable terminal which can be carried to the customer at their table will cost more than a static terminal in a retail outlet). Alternatively an integrated till can be used to accept card payments. Both will require an electricity supply and a standard phone line.

How much will it cost me to accept card payments?
Different banks will apply different charges for your transactions in the form of a percentage of the value of the transaction of credit card payments and a flat rate fee for debit card payments and most will charge more for a cardholder not present (CNP) transaction as there is a higher risk of fraud. The amounts charged can vary considerably from one bank to another but speaking to Seymour Direct will ensure that you get the best possible deal available for your business.

Is there much of a risk in accepting card payments?
Whilst there is an element of risk in accepting card payments, the banks are constantly developing the security issues - most recently the major improvement being through the introduction of CHIP & PIN which makes it extremely difficult for fraudsters to use credit & debit cards without knowing a 4 digit PIN (Personal Identification No.) and also puts more of an onus on the cardholder to ensure their PIN is kept confidential. However by adhering to the guidelines and making sure your staff are fully trained, problems of fraudulent transactions can be kept to a minimum for both the merchant and the cardholder.