However, I know that many banks do not like internet businesses, so is there a company that specializes in this type of accounts?

I want to know if I signup for a LLC business license and when I apply for a internet merchant account can I use my worker’s information to apply if I don’t want to associate my name on the account ? Thanks

Below are a number of tips to help you avoid any additional costs and save your business money with your UK merchant account.

1.  Avoid chargebacks

Chargebacks occur when a card issuer is asked by your customer to get a refund from you; apart from refunding the amount, other processing fees will also be charged.  The most common cause of a chargeback request is where the customer does not recognise your company’s name on their statement. You can negate this by ensuring that your trading name will be recognised by your customer by highlighting it on your checkout page, terms & conditions and confirmation pages.

2. Improve your after sales service

If you accept refunds, clearly state your refund policy and stick to it. Avoiding delays will save you money. It’s better to issue a refund and lose that sale than it is to deal not only with a lost sale but also additional chargeback fees.

3. Get cost effective settlement terms

Make sure your Payment Service Provider settles your funds in the most cost effective way for you. Many Internet Merchant Account providers will offer to settle your funds with a cheque but there is often an extra fee for this. Clarify your settlement terms and, if possible, set up a BACS transfer so that your funds go directly into your clearing account. This is usually the most economical way to have your funds released.

4. Get e-statements

If your monthly statements are sent to you by post, sign up for electronic statements if they are offered. Generally, Internet Merchant Account providers will charge you for posting your monthly statements (up to 10p a month).

By following these simple tips, you can avoid paying too much for your UK Internet Merchant Account.

Generally, you can obtain an Internet Merchant Account from banks, independent online payment providers and third party processors. These solutions tend to evaluate applications similarly, but you will find that banks usually focus more on your personal credit history (yes, it does matter) and the size of your business.  Online payment providers and third party processors, however, will be more interested in your turnover figures and your anticipated volume of transactions.

Therefore you should request quotes from the companies that specialise in meeting the needs of your business. For example: if you know that your credit history is less than perfect it is not advisable to get a quote from one of the major high streets banks as it is unlikely that your application will be approved. However, you should focus on online payment providers with a high acceptance rate that either provide flexible terms according to credit history or that do not evaluate credit history at all.

If you have been trading for a while and have a high turnover or high volume of transactions most companies will be happy to work with you. As rates are very competitive across the sector, ensure you get quotes from all companies offering better deals.  For example, PayPoint.net is offering to speak to their acquiring banks on your behalf to get you a better deal on your Internet Merchant Account.

Another potential issue is if you are running a specialty site that is considered high risk. By targeting the most appropriate payment processor, you can increase your chances of getting approved. For company owners that have a decent credit history, there are many more options available, especially if their credit card processing needs are small.

Ultimately, the secret to getting an Internet Merchant Account that suits your business requirements is to target providers that specialise in your business circumstances. This will increase your chances of having your application approved and save you time and money.

In this article we have put together the lowest fees offered by Internet Merchant Account providers, based on their processing, application and transaction costs. Whether you are a start-up and looking for a secure online payment solution or you’re looking to get a better deal on your current Internet Merchant Account, we’ve made it easier to make the best selection.

1. PayPoint.net – If you run a small business, this is by far one of the best Internet Merchant Accounts you will find. They are not only respected in the card processing community, but you won’t have to worry about hidden fees and extra little charges. As a small business you can qualify for PayPoint.net Lite, where monthly fees start at just £10 and there are no set-up fees. If you run an established business you can take advantage of their feature-rich Professional or Enterprise packages. Their FastTrack option also provides online merchants with a complete solutions package including an internet payment gateway and merchant account at competitive rates.

2. WorldPay – Although Worldpay charges the same monthly fees as Paypoint.net, their set-up fees are a little higher, coming in at around £200. The transaction fees are reasonable and this company is not known for tacking on any additional fees throughout the month.

3. LloydsTSB Business Banking – Lloyd’s has a few good options for those interested in accepting payments online. Their CardNet service comes with some great perks and offers some of the lowest fees around.  If you already have a business account with Lloyds you will probably find it easier to purchase this addition. Overall, their Internet Merchant Account pricing structure is very fair and they are upfront about the fees you can expect to pay each month.

4. Barclaycard Business Banking – This service is designed more for those with a lot of experience in credit card processing.  For those that are just getting started, the company provides customer service to help you get set up. We selected them for this list because, in addition to their online payment process options, they provide PDQ machines as well as other onsite merchant account options at much lower rates than their competitors.

There are a vast number of online payment providers in the UK, but this list focuses on the four that are currently offering the lowest fees and the greatest service. Before you make your mind up remember that different independent providers and banks may offer you higher or lower costs depending on your circumstances.

The good news is that payment processing services are not solely offered by Banks. There are other options available in the UK that will help you set up your online payment processing system in no time. Online payment providers and other third party processors have been around for a while and these companies can offer you the service you require regardless of your credit history.

The benefits of using these alternatives is that they have a faster application process (compared to most banks), approval rates are quite high, transaction rates and fees are competitive and services are tailored to meet the varying needs of different businesses.

Some of the best places to get a UK Internet Merchant Account when your credit is less than perfect include:

PayPoint.net – Possibly the best solution for start-ups that have not yet had time to build up a credit history or for those that need a credit card processing solution that can be implemented quickly. Their fees are very low and the approval rates are good. There are several different plans that are tailored to specific business types including payment gateway packages for businesses that already have online merchant accounts.  They are also able to contact acquiring banks on your behalf if you want to get a better deal on your current online merchant account.

PayPal – Probably the most commonly used option for higher risk merchant accounts as there are no credit checks to open an account. While this is technically not an IMA, you will be able to process credit card payments and e-checks in minutes. Most of their products are also offered without any monthly or set-up fees.

Durango Merchant Services – With a 99.9% approval rate, chances are your application will be accepted and your account set up in no time.  They specialize in high risk merchant accounts so if you’ve been turned down several times before, this might just the light at the end of the tunnel.

Nochex  – This is ideal for businesses that also need a point of sale service in addition to an online payment gateway. They offer a high approval rating and competitive pricing structure.

ChronoPay – One of the most popular choices for bad credit Internet Merchant Accounts, they do not charge any monthly fees and their transaction rates are low. They also offer a third party account solution, where you use their own IMA.

Just because you’ve made some mistakes in the past or haven’t had time to build your credit history doesn’t mean you can’t take payments online. With these solutions, anyone can start their own eCommerce site.