Raz started this topic @ 17:42 on 14/05/2003
Hi all,
First of all if anyone here trading from home, I'd like to know if you have to inform & register with Inland Revenue and do you have to take some sort of business insurance. How about if it's just a very small hobby type of business, do you still have to inform IR & pay for extra insurance?
Re: credit/debit card payment. The charges to obtain one is very high especially if you have just started trading and want to test the market, HSBC will not issue an intenet merchan account unless you've been trading for 6 months, instead they can provide you with a terminal which probably will have some monthly fees, not sure.
Barclays, have 4.9 % transaction fees for major credit cards and .30p for debit card & their epdq service cost £25 monthly plus 2% transaction fees on top of the above transaction fees. If you're trading from home they'll charge a business rate/joining fee of £250 (one off payment).
The lowest I found for card payment processor is Protx, transaction fee of 5p(flat fee) & no other fees but you need to acquire a merchant account, so their transaction fee will be on top of your bank merchant transaction fees.
I have also been emailing 2checkout.com & paysystem to compare the cost, they an american companies but can set you up to take card payments without merchant account, however consider the cost they charge to pay the funds in your account (can take up to 14days+)plus maybe the bank will also have sort of charges to accept the funds.
I'm pulling my hair out now, there just seem to have so many ways,
cost and things to consider. Maybe I'll do what Catherine done, sign up with Worldpay, quicker & straightforward. I'm getting a headache. I've done a lot of searching via the net & still unsure. If anyone know of any good card payment processor, please let us know.
Thanks you guys.
RE: Card payment/Merchant account
dreams24 | 16/05/2003 11:35 AM
I'm a web designer and have a lot of dealing with the third party credit card processors. I would advise you to signup with someone like worldpay as it does take the headache out of the whole process. You can use them until you have the money to set-up your own merchant account.
What are you planning to sell and what sort of costs as I may be able to provide you with a different option.
Aaron
RE: Card payment/Merchant account
Catherine | 16/05/2003 03:18 PM
Hi Raz,
I know this one can be a real pain and not only in the wallet. Have you tried Natwest/Streamline - you will need to do a business plan but they might give you a merchant id and then you can use someone like worldpay for payment processing and it saves a bit on the expenses, another advantage is that the money is paid into your account with 3-4 days instead of 28.
And as far as I know you do have to inform the inland revenue within 3 months of trading or face a fine - but they are not as scary as I was expecting. You don't have to have business insurance, but it might not be a bad idea - if I was broken into and all my stock or computer equipment was stolen the business would go under without insurance.
Anyway hope this helps - good luck.
Catherine
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www.getshirt-e.co.uk
www.realcarsnetwork.com
RE: Card payment/Merchant account
nogeeks | 20/05/2003 09:12 PM
Re: IR
Even the part time self employed must register with IR. If you fail to inform them within three months you are due a £100 penalty. During your first 12 months of trading however if you fail to earn £4095 (I think) you need not pay any tax to IR. Also you need not pay this £100 penalty. You are not liable for NIC either. Note however that you must inform IR that you are part of the Small Earnings group. just call them and inform them this.
Re: Credit Card Payment.
IMO, the simplest service for this is [url]http://www.netbanx.com[/url]. If you're selling just one good the startup cost is £125. All credit cards are accepted (as are debit cards) and no merchant account is necessary.
Re: Insurance
Exactly which type of insurance do you mean? If you intend to trade heavily with the public, Limited Liability Insurance is probably the best bet - although be wary, the market for this has completely died! Note it is not an obligation though.
Hope this helps.
Regards -
Neil
