trading names and banking and credit cards

[completerookie]

I have been asked by a company to help with actinic
they are already in the business they want to trade in and have very recently taken on the full UK distributorship for an italian company.
the company already has merchant accounts with the bank (barclays) so we thought, no problem, register a web site, create the actinic, register for credit card taking on line and start trading.

problem:
the banks tell us we can't trade as "the distributorship" (under another name) and have the money going to the parent company - what about returns etc etc etc.
for the charges, its

• new merchant account
• £25.00 pm standing charges
• standard transaction fees as though it was taken through the shop
• plus an extra 2% for taking transaction on line

so of course the question is:

• are there any issues about trading as "the ukdistributorname co uk" but owned by "the parent company" - providing we tell the web site purchasers
• what about other methods of taking credit card payments - paypal, nochex, worldpay etc (combinations?)
• what about "delays in receiving the monies" once you gone though a psp
• are there better banks / building societies / "streamline?" type companies over others

any comments ?
what a question, what a can of worms ! - its down to you lot, the lid has been removed

[Darren B]

I am no expert on these issues but, all our credit cards are processed under parent company C & A Supplies and the bank account is C & A Supplies, but also listed on the account is Trading as.

We actually trade under C & A Building Plastics as it is more descriptive however we can have cheques written to both and our website states the parent company. We have never had an issue with this.

I am not sure if it is completely the same as you situation but, i see know reason why the credit cards can not be paid into your parent account.

At the end of the day the bank has to satisfy itself you are not manoey laundering as to how to do you books to keep the tax man happy is none of ther concern.

I would look at someone else at politely explain if thay no longer want your business which is going to grow your'll take it else were.

May i suggest your client joins the FSB, you can then get free streamline setup, better rates, and free business banking with the co op. I found streamline more than willing to help with any questions i had.

I use PROTX (on my kite site) for the online credit cards but £20 a month for upto 1000 transaction is not bad. It took a little while before Nochex was no longer viable, plus i get alot more flexibilty with protx you do not get with nochex and they recently put the charges up to 40p + 2.something%

Cheers
Darren

Darren

[completerookie]

thanks darren,
these are the sort of replies I'm thinking of.
interesting to read of the FSB - I'll investigate sounds like a nice deal
and certainly the PROTX rates seem better.

I've also wondered, if you can be "parent company" and then "trade as company A" AND ALSO "trade as company B" AND ALSO "trade as company C" - sort of "cake and eat it" - at the end of the day, you've only got to open three bank accounts !

[Duncan Rounding]

You shouldn't need to open additional accounts just to declare a trading name. We have a number of 'trading as' names on one of our bank accounts for example. This allows us to trade and bank as a 'trading as' into one company account and we make this clear in the T&Cs. You should just need to document that as agreed and minuted in your company and give the bank a copy.

[completerookie]

hmmm.
its "my company and as long as I document it, I can do what I want - within reason"

thanks.
I'm still interested in the metods of taking payments if anyone else has comments.