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What Are Merchant Services?

In this short guide, we explain exactly what Merchant Services are and how we could help your small business save up to 30% on its Merchant Service costs.

What are Merchant Services?

Merchant Services allow businesses to accept card payments by debit and credit card. Your provider will charge you the following for every transaction made via your card machines:

  • A percentage of the value of the transaction for credit cards
  • A pence-per-transaction for debit cards.

You will also usually pay a monthly rental charge for the each card machine you use.

Are Merchant Services called anything else?

Merchant Services are often referred to as PDQ ('Process Data Quickly') or Chip & Pin.

How do Merchant Services differ from bank to bank?

With the exception of Barclaycard, the Merchant Service provider associated with your bank is likely to be operated by a third party company that trades using your bank's name. However, you can process card payments through any provider, of which they are 6 major players.

You can easily move between Merchant Service providers to find a cheaper alternative without having to switch bank accounts.

How much can I save by switching my Merchant Services?

Our customers typically save between 20-30% on card processing costs simply by comparing different suppliers and switching. We're here to help you find the lowest rates and the service most suited to your business' needs.

What are the different options when comparing rates?

The 'transaction' time tells you how quickly your card processing company will transfer your takings into your business bank account. Merchant Service providers usually offer Transaction +1 day settlements up to Transaction +3 day settlements, which can have an impact on the rates you're being offered.

The length of your contract (usually between 1 and 3 years) and whether you fix your rates for the duration of your contract can also have an impact on prices. We strongly recommend that customers fix their prices to avoid any unexpected bills and price increases.

Can I switch if I'm already in a contract?

Although it depends on the length of your current contract and who that contract is with, the chances are that you can still switch. We're happy to offer free and impartial advice to any callers on a case-by-case basis.

How long does the process take?

Once we have the few details we need from you, we can set up your new Merchant Services provider within a week.

What information will I need?

You can usually find all the relevant information needed to obtain a full quote just from having a copy of your existing monthly statement to hand. This will include:

  • Amount per month charged for rental of terminal(s)
  • The percentage of transaction value currently charged on credit cards
  • The amount (in pence) per transaction currently charged on debit cards
  • Your credit/debit card split (how much you taken per month on debit vs. credit cards)

What do I do next?

Our Merchant Services team has access to prices from a wide range of providers and can quickly establish if there's a better deal to be had for your business. Call us today on 0800 092 5399 to get your free, no-obligation quote.

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