There is a package and deal to suit most accommodation vendors; small or not so small. Just remember that the credit card people are providing a service and as such you have to pay them. However you don’t need to get ripped off with monthly charges and high transaction percentages / costs.
The cost you end up paying for the next maybe 20 years … WILL depend on negotiation. The more turnover you have, the better your rate should be. NEVER accept the first number you bank offers, even if its your first Merchant Account. Point out your figures and the business plan (you did make one – right?) that refers to “taking credit card payments” If the card payments are all on the Bank’s Gateway (and not on your own server) point out that their server is obviously secure and losses because of security will therefore be minimal.
How Payment Card Costs Work
When you apply to take cards you will be vetted for what is called a Merchant Account. If successful you can then get an on-line payments facility which will be charged at
- A monthly Rate
- Per item sold commission usually (transaction charges)
Support
Its handy to have someone to speak to when things go wrong, so make sure there is good support from the Bank you choose.
PayPal
PAYPAL are garnering customer respectability and are not perceived as something only ebay home-shops use. PayPal offer a simple version of a merchant account and gateway without any Monthly Fee but the charges per transaction are higher than average. 3.4% on Credit Cards and 20 pence on Debit Cards etc.
The PayPal chip n pin card reader (if you need one) is 49 pounds when on special offer or 99 pounds on general terms. It is genuinely handy if you are a more mobile business as the Card Reader (it looks like a small calculator) works with a smartphone app. Both can easily be carried about in your pocket.
Federation of Small Businesses (FSB)
The FSB is a good thing to join for any small business. There are discounts on Insurance and Card Services. Give them a call and ask about card payments and Merchant Services. 0808 20 20 888
Off-setting the Card Costs
You can always INCREASE THE VALUE of your product to off-set the cost of card companies. This means making the rooms more comfortable or giving guests better service. (Example : nice towels, better free broadband* – digital TV channels) So when you add a pound or two to the prices you still look like good value for money when compared with other accommodation in the area. In other words … That don’t mean your room rates should go up to such a degree that you make yourself uncompetitive. *Notice with free Broadband it is a one-off cost. If you offered nicer top brand soap, this would be an on-going extra cost for every room cleaning or bed change.
PCI DSS
Legal Alert. (the following is not legal advice – its our experience on-line and ONLY our opinion . Please treat it as such and ask your lawyer to clarify ANY and ALL legal aspects.
PCI DSS stands for : Payment Card Industry Data Security Standard … so it pretty much does or is what it says in its title. Its an international standard that ALL users of credit card data and debit card data MUST adhere to. You too! So if you HOST your own payment form and therefore collect card numbers and personal data; you need to know this PCI DSS stuff inside and out and comply. However …
To avoid all the hassle of personally dealing with PCI DSS you can get your Payments company to handle all the transactions so you never see the card numbers … just the money going into your bank. A common example will be SAGEPAY. When a customer buys an item on YOUR website he stays on the website until CHECKOUT. Just before the card details are requested the browser / page skips over to the SAGEPAY SERVER and the line is secured. Your customer then enters the card details, the transaction is logged at SAGEPAY and the system then returns to YOUR website. All the secure stuff is handled by the Payment Provider which in this instance is SAGEPAY.
DATA PROTECTION
Remembering of course if you retain personal information about individual people you may have to also sign up to the Data Protection Act and register as a Data Controller at the ICO or Information Commissioner’s Office. If you are not sure if you need to be registered (it currently costs 35 pounds GBP) you can take the Data Protection Registration : Self Assessment Test