Cashflow...

...how long from the customer to me?

[elgumbo]

Hi

I'm looking into a new project and will need to accept online payments. I'm UK based so was thinking of setting up a merchant account with one of the big banks but I can't find out what sort of time scale is involved from when the customer's card is charged and when the money appears in my account.

The only one I found was Barclays who work on something like 30-40 days from payment to deposit. Is that about normal? I'm in fast moving consumer goods and I'm looking for as little delay as possible.

Anybody have any experience of this in the UK?

Thanks

[jweighell]

I use WorldPay for my credit card processing, and I get paid are 4 weeks. I think you can negotiate it to be quicker, but I guess you need to be making a decent amount of transactions.

This works out alright with me as my main supplier gives me a month to pay my bills.

[Miop]

With a merchant account, I get paid in 3 or 4 working days. With Worldpay (as a bureau), I had to wait 8 weeks and ended up having to get a loan to fulfil orders!

[raycruzer]

Most merchant accounts pay in 3-4 days, as stated above, depending on the number of hold days you are given when you set up your account. You could have a 1-day hold, 2-days ... up to 5 or 7 days.

Most 3rd party processors like Moneybookers, iKobo, MultiCards, etc., also pay to your account right away, without any hold-days. Others that focus on software distribution tend to pay only once or twice a month.

[elgumbo]

Thanks for the info.

It looks like I need to continue my research.

[RedWolf]

It may be way different in the UK, but in the US I have the funds deposited in my account in two business days after batch transmission (nightly for me). I couldn't imagine having to wait 30 to 40 days.

[elgumbo]

The 30-40 days thing really threw me for a while but it looks like 3-4 days is more likely. I knew Worldpay was a non starter due to the costs and processing time.

Under a week I can live with. More than that not's not worth me bothering.