CardNet revolving payment plan

[calculus88]

In the process of setting up a new internet based business, CardNet need security of £7,500 either in one lump or as they suggested a revolving payment plan - they take 50% of the value of each of my online transactions and this remains held in an account with them til it reaches £7,500. When this happens I will get the full amount (minus charges) of each transaction, they hold this for a year as security in case my business fails and customers need refunds.
Does anyone have any experience of this? Comments would be gratefully received!

[guccij]

Doesn't sound like a good deal to me. Does it to you?

Why not think about the PayPal or WorldPay routes if this is your first foray into online selling.

[calculus88]

WorldPay are doing the same thing but are holding all monies until the threshold reached so not better off with them.

[guccij]

Really? When did WorldPay start doing that? Perhaps they're trying to recoup the losses run up by Sir Fred.

[Mike Hughes]

If you have a decent credit history then try talking to the manager at your bank. They should be able to offer you a better deal on a proper merchant account.

With fraud on the rise I'm not that surprised the 'no fuss' payment people are taking a stricter line on credit control.

Mike