Merchant Accounts For Small Businesses UK

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Merchant Accounts For Small Businesses UK

Merchant Accounts For Small Businesses UK – Overview

Running a small business in the UK can sometimes be challenging. Small business owners have to struggle a lot to create a name in the industry. They usually have to work for long hours to grow to the next level. Small businesses in the UK are continually working towards product and service improvement. They put in their efforts and time to offer greater customer satisfaction. Apart from fantastic product and services small business owners in the United Kingdom also need reliable merchant accounts and payment gateways. An organization without a robust merchant account may face challenges regarding transaction approvals. There are multiple reasons why it is vital for a small business in the UK to get a reliable merchant account.

Why It Is Essential To Get A Merchant Account For Small Business In The UK

Businesses in the UK have been using cash an9d cheque payment since ages now. The UK is a developed country, and most of the citizens already know about the latest technologies in the payment processing industry. Buyers and Merchants are aware of Wallet to Wallet payments, Apple Pay, Android Pay, Samsung Pay, etc.. Apart from these modes of payments customers also prefer to use the regular credit and debit cards to make payments to merchants. If you are a UK based small business owner, then you must use a reliable payment processing solutions to accept transactions in the shortest time possible. Apart from the speed of the solution pricing also plays a critical role. The Merchant Discount Rate(MDR) that is paid by the UK business owner to the Merchant Account Acquiring Company or Acquiring Bank also makes a significant impact on the annual profit of the company. As a business owner, you should primarily collect pricing for merchant services from different solution provider or payment service providers. After getting multiple quotations use your judgment and choose the one which works best for you. The team at Quadrapay will be happy to receive an email on [email protected] We will be glad to headhunt for you and find a reliable Merchant Account and payment gateway company for you within the UK. Our team may also help you to integrate the merchant account to your business website easily.

How Can A Small Business Integrate The Merchant Account To The Website?

Sometimes few Uk Small business owners may find it a bit challenging to handle the integration process. They do not have to woOry about it because most of the payment gateway companies and Merchant Account Acquirers across the United Kingdom offers free integration assistance. Sometimes these payment gateway companies may also provide free plugins. After approval of your UK small business merchant account, you can easily download these plugins to integrate into your website. If you are currently experiencing any issues in integrating your Merchant Account to your business website, then feel free to email us on [email protected] We will be happy to evaluate the challenges and offer reliable assistance.

Features Of Best Merchant Account For Small Business UK

Before signing the merchant account agreement for your UK based small business you must look at the following factors.

  • Setup Fee. Some processors may as for a upfront fee. Try to see if the processor is interested in offering a discount on the setup fee. If you are luck the processor may offer you a merchant account at zero setup charges.
  • MDR/Transaction Fee. You pay a fixed fee to the processor when you start using the merchant account. This fee is charged per transaction. You must work with the processor that offers the lowest transaction fees.
  • Ease of Integration. You should ask the processor in advance if their gateway can be integrated with your website or not. Some websites may be built on page builders and few processors may not have easy integration for page builders. Some page builders do not offer easy PHP code addition.
  • Payout frequency. Cash flow is vital for a UK Small business. Work with the processor that offers fast payout with less delay or hold back.

The Strength Of Small Businesses In The UK

As per the small business finance market, 2016-17 Report Source Small businesses in the UK are growing at a fast speed. These small businesses are employing about 15.6 million people across the United Kingdom. Around 37% of UK small businesses plan to expand the next year. These figures are fascinating. P2P lending has also increased across the United Kingdom and Financial Institutions are offering funding and business lending to small entrepreneurs in the UK. All these figures clearly explain one thing that small businesses in the UK can undoubtedly have a fantastic growth in future.

Types Of Merchant Accounts Available For Small Businesses In The UK.

Small businesses in the UK accept payments in two different ways mainly.

Card Present Transaction

The first way is the traditional way of taking credit and debit card at the store by using an EDC or Point of sales machine. It is also called Card Present Transaction

Card Not Present

The second way is of accepting credit and debit card transactions by using an online payment gateway. It is also known as card Not present Transactions. Merchants usually get API and Virtual Terminal to accept Card Not Present(CNP) Transactions.

How To Get A Merchant Account For Small Business In The UK?

There are multiple ways to get a Merchant Account for your small business in the UK. The easiest one would be to approach your bank and request a merchant account. There may be a high possibility that your bank would offer you an EDC or POS machine for card present transactions.

For Card Not Present(CNP) Transactions you would need an Internet merchant account or Online payment gateway that integrates directly to your website. Getting a card not present merchant account can sometimes be challenging.

There are multiple reasons why getting an online payment gateway for CNP is difficult.

  • The line of the UK Small Business(LOB). If you are selling a specific product that is considered to be high risk, then the merchant account provider might say no.
  • The credit history of the business owner/Financial standing of the Applicant company. Acquiring banks or payment service providers thoroughly analyze the applicant’s credit score as well as the profit and loss statement. If the Acquiring Bank realizes that the financial standing of the merchant is not healthy, then they may decline the application.

How To Improve The Chances Of Getting A Merchant Account For Your UK Based Small Business?

To improve the chances of your application approval, We strongly recommend you to send your application to a payment service provider that is comfortable in onboarding High Risk Merchants as well. Since they can onboard specific High risk merchant accounts, they can also help you with the Low Risk merchant account. Honestly, payment service providers who offer services to High Risk industries are always looking forward to onboard low risk accounts.If you are finding a lot of challanges in getting approved then you may also apply to offshore payment providers. is proud to work with multiple payment service providers. These PSPs offer services to Low, Mid, and High Risk businesses within the UK. To place a Pre-Application all we need is Your name, Email address, and your website. Once we get this information, we send the same to the compliance team at the payment service providers location. They perform the pre-approval check and analysis. If your UK business gets pre approved by the compliance team, then you will be asked to send the KYC documents directly to the payment service provider.

International Merchant Account For Small Businesses In The UK.

The world is fascinated with the United Kingdom it may be because of the language, or it may be because of the cultural influence which the UK has left on different countries across the world. It is interesting to find that small businesses located in the United Kingdom also sell products and services to customers across the globe in different countries. To sell the product and services to International buyers, small businesses in the UK require a multi-currency international merchant account. It’s entirely reasonable to see a North American buyer to be interested in making the payment in CAD or USD. It can be common to find someone in the European Union be interested in paying in Euro. A professional organization located in the UK must take a multi-currency merchant account. This way customers can quickly make the payment in the local currencies and your small business can grow into a big company.

Alternative Modes Of Payment Processing For Small Businesses Operating In The UK.

As mentioned in the previous section, small businesses in the UK also sell to buyers in other countries. It is essential to have a look at some alternative modes of payment processing. The UK and the United States have been working together on multiple projects. Businesses in these two countries also coordinate with each other. If you are a business owner in London selling to someone in New York you can also accept electronic checks or ACH Payments. Many ACH third party payment processor companies located in the United States of America would be happy to on-board merchants from London, Buckinghamshire, Gloucestershire, etc.

Many small businesses in the UK also sell to customers in Latin America. Buyers located in Latin America prefer to use local cards. You should work with the payment service provider or a merchant account acquirer that offers you a massive number of local card acceptance. If your payment gateway company does not accept local cards in Latin America, then you would probably lose a lot of business from South America.


Chargeback A Big Problem For Small Businesses In The UK

Reputation and growth are vital for any small business. Unfortunately, when a small business starts accepting credit and debit card transaction, sometimes they may experience chargebacks and frauds. A high Chargeback, Return or Fraud ratio can also result in account closure. There are multiple ways to reduce the chargeback and fraud that will help to maintain the account in good standing.

Establish a healthy relationship with the buyer

The customer is the king, and he can fire anyone by spending his money somewhere. If you maintain a sound relationship with your customer, then chances are if the customer is not comfortable with the product or service then rather than calling the card issuer he will call you. It will help you to reduce your chargeback ratio.

Verify the transaction.

No matter if it is a Card Present or Card Not Present transaction every transaction should be verified. There are multiple ways in which you can check the purchase. if it is a card present transaction you can ask the cardholder to show the national ID. You can match the signature on the national ID with the signature on the back of the credit or debit card.

If it is a card not present transaction, or online credit card transaction then you may request the customer for a copy of acceptance email. You can also initiate a phone verification to confirm if the cardholder actually placed the order

Initiate Shipment Without Delay.

Do not delay the shipment of the product. Customers who place the order prefer to get the product delivered in the lowest time frame. Initiate the delivery as soon as the transaction is done. Ensure that you are shipping the same SKU that was purchased by the customers. Many UK based small businesses utilize advanced supply chain management systems.

Ask for a Proof of delivery

Ask the customer to sign on the proof of delivery. Maintain the copy of the proof of delivery with you for the next 12 months. In case of chargebacks, you can spend the copy of the evidence of delivery to the merchant account acquirer. This can help you in winning the chargeback case.

Use Chargeback Alert Services

If you are selling internationally, then you should use chargeback alerts and notification services. These alerts can help you to renegotiate with the customer and can assist in keeping the chargeback ratio under the prescribed limit of Bank Card Associations.

SEO Tips For Your UK Based Small Businesses Website.

When you create the site ensure that your website is only using the genuine content. Content must be related to the product and services that you are selling. Always keep in mind about the thought process of your buyer. Try to deliver the content that your buyer is expecting. Gone are the days when small businesses websites used to rank with short content. To list on google first page in the UK, you must have at least 1000 words on each article.

Try to offer massive informational content to your buyer. Let the buyer know about the specification of the product and detailed analysis of the product. This will help you in engaging the buyer on your website for the more extended time frame. This may also convert into a sale.

Resources For Small Businesses In The UK

There are multiple associations across the United Kingdom, and the objective of these associations is to help and empower small and medium enterprises.

ABTA is primarily assisting Enterprises that are operating in the travel industry across the United Kingdom. This can be a perfect organization in the hospitality and travel industry.

Wonderful resource to understand the advertisement standards of the United Kingdom. Small businesses can refer to this website and get extensive information about the advertisements and related initiatives.

Responsible countries implement various standards that must be followed by small and medium entrepreneurs when they are advertising. Asa keeps a close watch on the advertisement standards across the United Kingdom.

There are many other associations in The UK that provide funding and cash advance assistance to small businesses.

Bankim Chandra
Bankim Chandra
Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.