Do you need a merchant account to take card payments?
Every card machine needs a merchant account behind it. Here is what that means in plain English and how to choose between the options.
The short answer
A merchant account is the arrangement that lets your business accept card payments and receive the money. It is provided by a regulated acquirer, which is a bank or payment company that processes card payments for businesses. You either hold one directly, or use a provider that includes it as part of one package.
The two main set-ups
- Dedicated merchant account: your business is assessed and set up on its own account. Pricing is usually quoted for your business, based on your takings and card mix.
- Bundled or pooled account: the provider processes payments for many businesses under one account, so sign-up can be quick. These often use a flat rate, and may have limits or hold funds in some cases.
Neither is right for everyone. A dedicated account tends to suit businesses with steady card takings that want a personalised rate. A bundled account can suit very small or occasional sellers.
What providers usually ask for
- Your business name, type and address (limited company, partnership or sole trader).
- A UK business bank account for payouts.
- Identity details for the people who own or run the business.
- What you sell and roughly how much you expect to take by card each month.
Approval is subject to the provider's checks, so timing depends on how quickly the information is supplied.
How PayZu fits in
PayZu supplies, sets up and supports your card terminal. Card processing is provided by our regulated payment partner, which is who you contract with for processing. We help with the application, so you don't need to arrange a merchant account yourself.
What PayZu offers
- Debit card rates from 0.29%* (T&Cs apply)
- £0 upfront, zero hidden fees, zero PCI fees
- Next-day settlement as standard
*0.29% applies to UK consumer debit cards for businesses with monthly card takings above £40,000. Credit, business and international card rates, and rates for lower takings, are quoted individually. Subject to eligibility and status.
Common questions
Do I need a merchant account for a card machine?
Yes, in one form or another. Some providers set it up for you as part of the package, which is how it works with PayZu.
Can a sole trader take card payments?
Yes. PayZu card terminals are available to limited companies, partnerships and sole traders, subject to the provider's checks.
Is a merchant account the same as a business bank account?
No. Your business bank account receives the money. The merchant account is the card-processing arrangement that sends it there.
Related
Send your statement — let us beat it
Tell us about your business and we'll come back with a personalised rate. You can also email your statement to info@payzu.co.uk.
- Debit card rates from 0.29% (T&Cs apply)
- £0 upfront
- Zero hidden & PCI fees
- Next-day settlement