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  1. #1
    Join Date
    Oct 2007
    Location
    Reading, UK
    Posts
    601

    Angry UK Banks that *will* provide a merchant account to webhosts for SagePay

    So we want to set up CC processing via SagePay on our website, having run for the last five years with PayPal and more recently GoogleCheckout also. We recently decided it was time to get SagePay set up to give customers another option, and to avoid PayPal as some clients appear to have issues with them. But we've hit a wall, no banks seem to want to give us a merchant account, because we are a webhosting company?!

    We've talked to a few banks over here and they say that do not provide merchant accounts to web hosts or other online businesses that only deal in virtual goods/services as the business is considered too higher risk.

    If you are a webhost and already have a UK merchant account and are using SagePay could you post with details of what bank you are with to help us in our search to find a bank that will accept a webhost - also has anyone had a similar problem and gotten round it?

    Thanks in a advance
    Toby H
    Infrastructure Consultant
    SolutionFire.co.uk
    cPanel | VMware | XenServer | cPanel | 3PAR | R1soft

  2. #2
    Join Date
    Jun 2003
    Location
    London, UK
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    1,733
    Try Barclays.
    Darren Lingham - UK Webhosting Ltd. - (0800) 024 2931
    Tsohost.co.uk - Quality UK Windows and Linux hosting since 2003
    UK WordPress Hosting - Fast, easy, cloud based WordPress Hosting

  3. #3
    Join Date
    Oct 2007
    Location
    Reading, UK
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    Hi Darren,

    Are you using them at the moment? If so, was the sign up easy and not too painful?

    Cheers for the suggestion
    Toby H
    Infrastructure Consultant
    SolutionFire.co.uk
    cPanel | VMware | XenServer | cPanel | 3PAR | R1soft

  4. #4
    Join Date
    Jun 2008
    Location
    Glasgow, United Kingdom
    Posts
    480
    Have you tried HBoS?

    I'm with them, and they've always been happy to help.

    Barclays is another business-friendly bank
    Hello

  5. #5
    Join Date
    Oct 2003
    Location
    Scotland, UK
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    2,900
    Quote Originally Posted by peter_anderson View Post
    Have you tried HBoS?

    I'm with them, and they've always been happy to help.

    Barclays is another business-friendly bank
    Would second HBOS, specifically Bank of Scotland as that's who I dealt with - http://www.bankofscotlandbusiness.co...processing.asp. As far as I'm aware, it isn't HBOS directly but some sort of partnership agreement they have with another provider.

    I was speaking to them in March this year regarding a merchant account, but for other reasons I decided not to go through with it. They didn't have a problem with web hosting and they were quite happy to negotiate the rates
    Alasdair

  6. #6
    well try barclays or HSBC we have accounts with both and both are very good.

    After the losses HBOS posted equaling 30 per person in the UK, I would stay well away...

    The 2 I mentioned above both have good business banking and didnt go to the government with a cap in their hands.
    NetEarth One
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  7. #7
    Would RBS offer a Merchant account?

  8. #8
    Join Date
    Oct 2003
    Location
    Scotland, UK
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    2,900
    Quote Originally Posted by netearth View Post
    well try barclays or HSBC we have accounts with both and both are very good.

    After the losses HBOS posted equaling 30 per person in the UK, I would stay well away...

    The 2 I mentioned above both have good business banking and didnt go to the government with a cap in their hands.
    I have my business bank account with HBOS and the Lloyds takeover / government stake hasn't changed anything for me.

    While they are both partly-nationalised, the government has shown that they won't let either of them collapse - so I can't see the issue to be honest. In some ways, it puts your money in a safer position.

    Barclays haven't been immune (although are doing far better, I don't deny) - they also had to go and raise capital, instead they went to the far east and sold a good chunk of the business at a price that many consider to be far too cheap. It was ABN Amro that caused a lot of damage at RBS (of the 28 billion losses announced, 20bn came from ABNAmro) - and do remember Barclays had wanted to buy them as well, so they could have easily been in the same position!

    Quote Originally Posted by jardin View Post
    Would RBS offer a Merchant account?
    RBS have both RBS Worldpay and also Streamline.
    Alasdair

  9. #9
    Although I haven't used them myself, I know of several webhosting companies that are taking payments through RBS Worldpay, so I can't see them having any issues, as long as you're prepared to choose them with the current political/economic situation.

    I also know from Personal experience that Barclays are happy to offer a merchant account to webhosting companies.

  10. #10
    Join Date
    Oct 2007
    Location
    Reading, UK
    Posts
    601
    Thanks to all that have suggested things, I'll update here as and when we get this all working to let people know what happened!
    Toby H
    Infrastructure Consultant
    SolutionFire.co.uk
    cPanel | VMware | XenServer | cPanel | 3PAR | R1soft

  11. #11
    Join Date
    Mar 2007
    Location
    United Kingdom
    Posts
    767
    I know exactly what you mean.. We started off with PayPal, and then PayPal Pro, but we now use two methods for processing Credit/Debit Cards.

    We use PayPal Pro for Domain Registrations (thats the main reason why liability for Murchant accounts is so high, because of the registration/ownership of a domain at the point of purchase), and use the Natwest StreamLine service for all other CC Payments for services we provide. We got lucky being able to argue that we're an IT Consultancy that also offers WebHosting and Domain registration services, but isn't the main bulk of the business.

    PayPal Pro doesn't require a murchant account, and you can take creditcards directly from your own website/code without your end users being directed to PayPal. Funds instantly appear in your PayPal account, which you can transfer to any of your bank accounts registered with PayPal, and transfers usually take 2-3 working days which is roughly the same as having a murchant account anyway.

    We preffer to use our murchant account because the rates are allot cheaper then PayPal.

    What's also interesting is that Banks won't give you murchant accounts in Hosting unless you have a large volume of transactions and high income. Or you pay a Reserve between 1000 and 10,000 which i'm sure they just make up on the spot to see what they can get away with.
    SOA/SaaS/Cloud & Hosting Technology Evangelist
    Note: Any opinions expressed are my own and not of anyone else or my companies.

  12. #12
    Sorry to resurrect this old thread, but I found the information here very useful.

    I can add that Bank of Scotland aren't hosting friendly, they just shut down our merchant account after only a few months of being with them, saying they shouldn't have opened it in the first place! No charge-backs or issues that prompted it, just so long and thanks for all the fish...

    Darren

  13. #13
    Join Date
    Oct 2007
    Location
    Reading, UK
    Posts
    601
    Hi Darren,

    Yup, the project I was working on at the time of this thread is now using PayPal Payments Pro for CC processing and they are pretty happy with that solution.

    None of the banks we contacted would open a merchant account for them for lots of reasons, most of which related to domains and the high fraud risk in this industry.
    Toby H
    Infrastructure Consultant
    SolutionFire.co.uk
    cPanel | VMware | XenServer | cPanel | 3PAR | R1soft

  14. #14
    I am investigating the possibility of continuing to use SagePay just as a front end for PayPal until I sort out another merchant account. I don't know if they support this set-up, but it would save me having to reimplement my payment process and also any PCI-DSS issues around Paypal Payment Pro. It's a bit of an expensive way to use Paypal though.

    I only switched to Bank of Scotland for better rates having been with HSBC for several years - which of course I'm now regretting!

    Darren

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