Most important parts that you need to understand

Below we have outlined what we feel are the most important parts of the merchant account that you need to fully understand.

Please also read through our website and FAQ's as these tell you everything you need to know - and more. Most importantly please read the contracts, once you receive them, to fully understand what it is you are getting. We obviously can not be held liable once you have signed them and the account is set-up.

Companies incorporated in EU with business bank accounts offshore

Due to the money laundering act, remitting funds across international borders can sometimes be a bit tricky i.e. they will only remit funds to accounts in the same country as the business is based. However if your business bank account is in exactly the same name as the registered business then this will be ok.

Non EU businesses applying for EU Optimal or Premier accounts.

A company located outside the EU wanting to apply for either the Optimal or Premier account must be an EU incorporated company, and not just have an EU address. For example if your business is located in Hong Kong you would need to have an actual EU incorporated business. Simply having an address here would not suffice.

Sole Traders and Individuals

We are recently experiencing with the banks we use for the Optimal Account that they are not fond of Sole Traders as they're not registered at an official body. Because of this they are reluctant in accepting these merchants. If you are a sole trader or an individual the only way we can place you is with good security otherwise we can only provide a 30 days delayed payment with weekly settlements. It would help if sole traders are registered at the Chamber of Commerce. Then the delayed payment will be 14 days with weekly settlements.

Unfortunately with the Premier Account we can not help sole traders or indivduals whatsoever.

Please note that if you change entity you become a new legal entity and then therefore will have to put in a new application. For this reason if you are thinking about changing then it may be worth waiting to put in an application until you have arranged it

Officially registering your business (Sole Traders and Individuals)

With the Premier account, in order to generate a merchant number for a Sole Trader or an Individual and to provide a much preferred shorter weekly settlement, we need some kind of evidence that they are indeed registered as a company (for example, a company doesn't necessary need to be registered in a Commercial Register, but in most cases we demand a Business Registration document).

Registering your business proves to companies such as ourselves that you are taking your business seriously and not simply setting up as a fly-by-night company - with one main aim... to rip people off! Not only is registering a business a great start for those individuals just looking to secure an identity for future trading purposes, or to block it from being registered by a competitor, but it also means that on a customers credit card or bank statement it will say your company name instead of for example 'Mr Smith - Trading As / ABC Industries.' This not only looks more professional but also reduces the risk of chargebacks.

Business Registration can be done online for around £70 and can usually be sorted within the day. Please either visit www.start.biz or search online for 'registering a business, uk'.

Please note that registering your business is different to becoming Limited.

Accepting credit and debit cards depending on country of incorporation

Because of the Credit card rules that ALL online payment serivce providers must follow, many merchants simply assume they can accept all credit and debit cards no matter what they are doing or where they are located. Unfortunately this isn't the case.

To be able to accept Visa, MasterCard and Amex you can be incorporated anywhere in the world (within reason). However to accept debit cards you must be incorporated in the country the debit card originates, normally the UK and Europe. Below is a list of cards and the country your business must be incorporated in to accept them.

Please also note that for Amex and Diners, these must be obtained by Merchant.

Main reasons why application timescales extend

When you apply for a merchant account you need to complete and return various documents, proof of ID and also have your website up to scratch (unless MOTO only). This may take an applicant a few hours or even a few weeks to provide them. Because of this applications can become delayed. Simply put - for every day it takes to receive the relevant documents back that's at least how much of a delay there will be. For example if we provide an estimated timescale of 14 days to process and activate an account, but receive the documents back 10 days after sending them, the complete process from sending out the documents will take 24 days.

One tip to speed up the time it takes to process an application is to get all the relevant ID ready while we process your initial application. That way you will only need to complete the relevant documents sent to you, if we can indeed help, and not have to suddenly run around looking for ID, utility bills etc. slowing down the process.

What ID Documents do I need to supply?

Due to money laundering regulations 1993, fraud and obvious ID theft, we will need the following from you once you have applied and been initially accepted. Please note that you will be notified via email of what exactly you need to supply and when.

• Scan of valid ID of company's owners/director(s). Preferably Passport or National ID
• Original utility bill or bank statement i.e. dated from within the last three months, and for a service provided directly to your home. Acceptable examples are bank statements, gas, water, electricity, or landline telephone bills.
• Voided cheque (or a copy of a recent Bank Statement)
• Certificate of Incorporation (and related documents)
• A copy of the Terms & Conditions as listed on website
• Domain name must be registered in the applicants company (legal) name

Checks preformed as part of the application process

As part of the application process, only done once we have received all the relevant documentation back, we perform two main checks.

1. MATCH Database - The MATCH File is maintained by MasterCard International and is the way by which MasterCard and Visa acquiring banks identify merchants, and the principals, which have been terminated for specific reasons. These check find information such as when a merchant has been convicted of credit card fraud, deposited sales that were not authorized by cardholders, deposited transaction that were for sales generated by another business (known as laundering.)
   
   
2. Credit Check - Unfortunately we often come across cases where a director of a company, who has bad credit, will start a new company without settling old debts in the hope of acquiring merchant status. Even though limited companies have limited liability, we will still need to check the credit history of the business and also each partner.

Settlement Periods and Rolling Reserves may be increased

In order to increase the merchant's chance of obtaining a merchant facility with one of our sponsor banks due to an applicants status and/or business model and following a full risk assessment of an application, we very occasionally need to increase or place two specific elements: the settlement period and the rolling reserve. Indeed a longer settlement period and a larger rolling reserve (normally 14 - 28 days and 10%) are more likely to reassure our processing bank that we have taken sufficient steps to mitigate the risk exposure on an account.

Please be assured that you will be notified of this prior to going live, and if not happy can reject the new terms without any risk of being liable for payment. However once you have agreed the new terms and signed the agreements you would then be liable.

How to reduce or even eliminate a rolling reserve

With the Optimal account (and Premier if one has been placed) we would, on occasion, be able to consider 0% reserves, however before we would make this offer we would need to see the latest set of financials for the company to make sure that the health of the business is sound. This will help us to get a better picture and alleviate the need of a rolling reserve. To do this we would look at the financials on the public database through Companies House, however if these are not filed there then you will need to supply these to us.

High-Risk Registration Fees

Due to certain 'Adult' businesses e.g. downloadable videos and photos (NOT physical hard goods), needing a different kind of merchant account, they are subject to additional “High Risk Registration Fees” from VISA ($500 per year) and MasterCard ($1000 per year). We would like to make it clear that this is not an extra charge incurred by us!

Premier Account Annual Fees

Only the Premier account has an annual fee. Depending on your business depends on the annual fee. This is either £85 (98 EUR) or £858 (950 EUR). A company classed as low-risk would be £85 while a high-risk company would be on £858. We will inform you of the annual fee following a full assessment. Again this is not an extra charge incurred by us!

Categories which fall under the £858 mark.

• Vitamins/Supplements
• Adult (mainstream)
• Dating Services
• Travel/Tour/Entertainment
• Credit Repair Companies
• Skill Gaming
• Gambling

Virtual Terminal and VPOS - There is a difference!

The Virtual Terminal is a secure browser based interface that will enable your business to process mail order, telephone order (MOTO) credit card transactions, It eliminates the difficulty and additional hardware expenses normally related to manual credit and debit card processing. Access your Virtual Terminal from any Internet connection to process card payments.

The VPOS (Virtual Point Of Sale) is a Windows-based software application that provides all the necessary features required for processing credit and debit card transactions quickly and easily in situations where cards are not present.

If using a call centre please check with them whether or not they allow the use of Virtual Terminals or VPOS systems.

Not all accounts offer the same credit and debit cards

With our merchant facilities we give you the ability to accept most credit and debit cards. However due to the different banks we use, not all of them allow you to accept the same cards. All three accounts we offer allow you to accept Visa, MasterCard, Visa Delta, Amex, Diners and Electron. However with some cards certain conditions apply.

For example; Maestro can be accepts with the Optimal and World Accounts, but not with the Premier Account. Electron can only be used for MOTO transactions with the World and Premier accounts, but can be used for eCommerce (through your website) with the Optimal Account.

Because of the slight differences between accounts please read carefully which ones allow which cards. You can do this be either viewing the prices and costs of each account or by reading the relevant FAQ's.

Please note that currently the Premier Account does not allow Maestro cards. However we are hoping to have this resolved by the end of 2009, beginning of 2010.

Providing false details and business descriptions

A number of businesses try to apply using false details and/or business descriptions e.g. selling DVD's but in fact selling medication. As you can imagine this wastes a lot of time for all parties involved, chiefly us. For this reason, anyone who knowingly provides wrong business information will be charged a £150 + VAT Fee.

More importantly this practice is illegal and is classed under UK law as 'trying to acquire products or services under false pretenses'. As you can imagine we take this very seriously and anyone caught doing so will have their business details past over to the appropriate authorities

Any company who changes their business model must inform us as soon as possible, otherwise their account could be closed with immediate effect and no refund given

Important Mandatory Website Requirements

If you are using a website to sell online you must comply with certain website requirements. These are mandatory and must be complied with before an application can be fully approved. If you have not developed a live website then a test (BETA) site will be adequate.

Please note that the below requirements do not apply to 100% Virtual Terminal (MOTO) only merchants. However if a website is used in conjunction then these rules apply.

If using a website please make sure the following points are met:

• Clear posting of the company's legal name on the website
• Clear posting of the Customer Service telephone number or email address
• Clear posting of the Refund and Return Policy
• Clear posting of delivery methods and timing
• Listing of products with pricing stated in the settlement currency
• Website order page needs to be secure/SSL
• Domain name must be registered in the company's name

My credit rating isn't the best. Can you still help?

In most cases, YES! If you have certain on-going credit issues or have even come out of bankruptcy, we can often still help. It all depends on how many defaults you have, how old they are, how far apart they are, how much you owe and if they have been settled.

Unfortunately we often come across cases where a director of a company, who has bad credit, will start a new company without settling old debts in the hope of acquiring merchant status. For this reason the above doesn't just apply to sole traders, but also applies to limited companies. Even though limited companies have limited liability, we will still need to check the credit history of the business and also each partner.

Even if we can't help with one account, and depending on credit history (and business type), following a full risk assessment of an application, we may sometimes increase two specific elements: the settlement period and / or the rolling reserve, in order to increase the merchant's chance of obtaining a merchant facility with one of our sponsor banks

Indeed a longer settlement period and a larger rolling reserve are more likely to reassure our processing bank that we have taken sufficient steps to mitigate the risk exposure on an account.

As you can imagine we are unable to tell who will have their settlement period and rolling reserve increased until an application has been put in and is being processed. Please be reassured that you are under no obligation to continue with the application if the new terms offered no longer meet your requirements. If this is the case than simply reply to the relevant email and your application will be terminated.

Applying for different accounts at once

Sometimes a merchant will apply for different accounts at once, not always with the same company, in the hope that this will get them a merchant account more quickly. As you can imagine this not only causes extra work for everyone concerned, it also means that if we provide you with an account, regardless of whether or not you have been accepted elsewhere, you will be liable for payment - please see below for more information.

Please also note that as part of the application process we need to do checks on you and your business. One of these includes a credit check. Therefore by applying for several accounts at once you will adversely effect your credit score.

If you are simply wanting to see which account we could offer, then it would be best to apply for one, see if you are rejected or the terms are changed, and then apply for the other one. Please note that it only takes a 2 - 3 working days to receive an initial answer for each account.

When will I be liable for payment for the merchant account?

By applying you are in fact signing up for our service and not simply enquiring further. This means that if you are accepted and sign the relevant documents and contracts, you will be liable for payment.

On certain occasions the accounts that we provide are not used by the merchant. This could be because they are taking longer to set-up the rest of their business, are not taking as many online payments as expected, have decided not to use it or they have simply forgotten about it. Whatever the reason we are unable to issue a refund as this in not due to a problem caused by us.