Well, i've taken the plunge and I am in the process of setting up my Hosting Company after reading so many great posts on these forums they have been a huge inspiration!

So far I have put an application in for WorldPay as I thought this would be best for being a start-up and also could grow as the company does.

I got an E-Mail back to say that the Application had been refused, I asked if this could be reviewed again and they are doing so as a few items were missed for some reason when they looked at the Application the first time - Don't know why!

At the moment it is like ping-poing they are asking me 101 questions (fair enough) and I am sending my responses back but still no further yet to a full YES or NO.

Anyone else have problems like this when stating you are a "Web Host" and do you think I will get that all important yes? (Fingers Crossed).

I have seen other hosts who use WorldPay so I hope they can approve my Application!

Cheers

Are they in the process of selling worldpay?

I asked them to add new installation id for few other websites and they informed me that they are upgrading their system.

That was 3 months ago and I am still waiting :) ... This could be the reason why they refused your application.

I've heard they have to sell it and are awaiting a buyer to my understanding.. Reading some of the news articles it seems the orgiginal founders wan't to try and buy it back from RBS.

No hope for me then if its taken 3 months so far for yourself, maybe should start looking at an alternative.

Cheers for the input! :agree:

The sale of WorldPay isn't likely to impact the take-on of new business. The reason you are running into a problem is the underwriters at RBS WorldPay consider web hosting to be quite high risk. I used to write quite a few accounts through RBS and still have a relationship there, but I don't take any hosting accounts there for this reason.

For anyone that is interested why, I think hosting accounts in the industry (and this is not WorldPay specific) got lumped in with shell accounts and other types of remote computer access that were used by hackers and attracted a lot of fraud.

The impact is that it makes getting an account for any web hosting company (and particularly a startup) quite challenging.

Don't be too put off becuase what one bank will pass on others will still approve. The other thing to consider is that as you build a processing history, doors that were previously closed to you will some day be an option. For example, if I had Rackspace as an account I'm sure I could get it through the underwriters at RBS, but for a startup hosting business approval can really be a challenge. That is why you sometimes have to start with a processor that may not be your ideal choice (and it may impact your rates) but it's one of the things you work through and over time other processing options will open up for you.

Cheers for the input David! :agree:

Do you know of any "Start-Up Friendly" Merchant Accounts that could be used for us in the UK?

Guess I need to keep my options open at the moment, been having long talks with WorldPay and it is as you have said above. I'm having to made so many changes at the moment and it's still not a full yes or no.

Cheers!

You can always start with processors like 2co additionally use PayPal and other 3rd party processors for at least 6 months until you have build up some processing history, this is what many do, if you chargeback ratio keeps below the 1% you are good after the 6 month period to apply for a merchant account maybe even directly with some of the banks available...

Would using PayPal and 2CO have an impact when it comes to applying for a full Merchant Account though?

Would they say that anyone could open one of these accounts so its not any use as proof for applications for a Merchant Account?

Might be my only option soon though if all else fails...

Nope, what counts is the chargeback ration and your track record through the processing history....

Another thing to be aware of is that WorldPay sends your money as a wire transfer and its done by merchant code. If you have 2, that will be 2 seperate transfers each time. If your bank charges for incoming wire transfers (ours charges $10 a pop), it can add up.

We are looking to move away from WorldPay right now.

Hosttoday, I know a few that can help you as I have relationships with several banks in the UK, but the TOS of this forum prevent me from posting to generate business for an entity I have a relationship with. I'll send you a PM with some banks that might be able to help you.

Fionix is right - any processing history, including a paypal or 2checkout history can be used to support an application. They are most concerned with trading volume and chargebacks, although there are other criteria that also impact an application such as average ticket, refund rate, and some banks like to see a breakdown on card type and cardholder location.

Larwilliams - WorldPay sends as a wire transfer but it shouldn't have to be done by installation. I can be more specific -- usually transfers are broken down by currency, as most merchants split their volume by currency (or often they do with WorldPay). If you had 2 accounts both processing in USD you should be able to get them both settled in one wire, as long as they are for the same company. If they are seperate companies they are seperate entities and thus have to go to different bank accounts (one for each company.)

Nope, what counts is the chargeback ration and your track record through the processing history....

Ah - That's a good start then should I need to go down that route. Cheers! :agree:

Another thing to be aware of is that WorldPay sends your money as a wire transfer and its done by merchant code. If you have 2, that will be 2 seperate transfers each time. If your bank charges for incoming wire transfers (ours charges $10 a pop), it can add up.

We are looking to move away from WorldPay right now.

Cheers for the info, don't think I will ask for anymore after the amount of time it's taken to try and get this one set-up haha! :D

Hosttoday, I know a few that can help you as I have relationships with several banks in the UK, but the TOS of this forum prevent me from posting to generate business for an entity I have a relationship with. I'll send you a PM with some banks that might be able to help you.

Fionix is right - any processing history, including a paypal or 2checkout history can be used to support an application. They are most concerned with trading volume and chargebacks, although there are other criteria that also impact an application such as average ticket, refund rate, and some banks like to see a breakdown on card type and cardholder location.

Larwilliams - WorldPay sends as a wire transfer but it shouldn't have to be done by installation. I can be more specific -- usually transfers are broken down by currency, as most merchants split their volume by currency (or often they do with WorldPay). If you had 2 accounts both processing in USD you should be able to get them both settled in one wire, as long as they are for the same company. If they are seperate companies they are seperate entities and thus have to go to different bank accounts (one for each company.)

Thanks again David, if I used PayPal does that tell you what Card Type was used? Didn't even think that they would wan't to know this (Learn something new every day!)

Thank's as always for the valued imput folks :agree:;)

I don't think you see the breakdown by cardtype with Paypal. The reason that is asked for is that sometimes in order to secure larger accounts (that trade high volumes) the mercahnt may warrent a low discount rate. The bank has to be competitive on the rate so they quote closer to cost. However, if they are doing a blended rate instead of a qualified / non-qualified quote where your rate does not fluctuate by card type, they need to know which types of cards you process to get a handle on what their costs will be. Really this doesn't impact most small and mid-sized merchants, and isn't something to be too concerned about, I was just mentioning some of the other underwriting criteria that folks may be curious about.