Merchant Account Set-up Guide

There are two major components necessary to accept card payments from your

customers. The first is a merchant bank account and the second is a payment

gateway service (for eCommerce or mail order transactions) or a Chip and Pin

terminal (for face to face transactions).

Your merchant account is where card details are securely sent for authorisation.

The merchant account will validate the customer’s card and ensure that funds are

available to complete the transaction.

Merchant: e-commerce / MOTO Sage Pay merchant account Sage Pay Payment Gateway Funds credited to your business bank account 3D Secure Fraud Screening Merchant: Cardholder Present Sage Pay merchant account Sage Pay

Chip & Pin Terminal

Funds credited to your business bank account eCommerce & MOTO

Cardholder Present (face to face Chip & Pin transactions)

How it works

1. Your customer selects the goods they wish to purchase from either your website, over the phone or via mail order or in a face to face environment.

2. Your customer’s card details are captured securely by either the Sage Pay payment gateway (for ecommerce and Mail / Telephone Order) or through a Sage Pay chip and pin terminal.

3. For ecommerce, your customer may be

For face to face transactions, the cardholder enters their PIN.

4. The merchant bank sends the card details to your customer’s card issuer who authorises or declines the transaction.

5. The merchant bank then sends the transaction results back to Sage Pay.

6. Sage Pay sends the authorisation results to you and your customer to confirm the results of the transaction.

Your merchant account will be provided by Sage Pay and Elavon, a leading

global provider of merchant acquiring services.

There are several steps involved in setting up a merchant account, including a

validation process required by the bank. To make it easy, we’ve detailed each

stage and highlighted what you need to do next.

Step 1

Complete the online form, print & sign it

Completing the online form

Once you have completed Sage Pay’s online application form, you need to print and sign it. The bank requires a ‘wet’ signature as authorisation from you, in order to proceed with your application for a merchant account.

Contacting Sage Pay

We’re on hand 24 hours a day — 7 days a week, so if you have any questions about your merchant account or any of our services, we’re always available to help.

1

2

your business

3

4

5

Signatures

Principal 1 will need to sign the following sections of the form: a) Application form Section 12 ‘Signatures’ section

b) Bottom of the ‘Schedule of Fees’ (see page 5)

If you’re applying for Multiple accounts (eg: eCommerce, Mail / Telephone order and Cardholder present), then Principal 1 will also need to sign at:

c) Bottom of the ‘Add Location’ form(s). There will be one of these for each additional service selected (see page 6)

a)

Make sure you sign the application form as shown. If you don’t, we won’t be able to process your application.

Bottom of the Schedule of fees:

Bottom of ‘Add Location’ form*:

c)

*Only if you’re applying for multiple facilities (eg: ecommerce & cardholder present & moto.) main principal to sign here

Cardholder Present Applications

Cardholder Present Chip & Pin terminals are now available for LTD companies and LLP businesses.

Through our online application process, you would have been able to select the type of terminal you require, and the quantity. A Merchant Account application would have been generated for you to print.

If you are applying for a Sage Pay Chip and Pin Terminal, then we will also require you to sign a Terminal Hire agreement. We will send this to you shortly by email, and ask you to tell us about where you would like your terminal(s) to be delivered.

The hire agreement we will send you will contain information on our pricing, and our full terms and conditions. Your terminal rental fees, and the configuration and delivery fee will be charged by Sage Pay, whilst your merchant account fees will be charged by Elavon.

Countertop Device

Mobile GPRS Device

One off configuration and delivery fee for each device £49 + VAT £99 + VAT

Step 2

Validating your business

Your merchant account is a banking facility, and for this reason, the bank has to

validate the nature of your business, along with the identity of the business and all

company directors in order to grant you with a merchant account.

Why does the bank need this?

• This is to protect your business from potential fraudsters setting up an account under your business’ trading name.

• It is also to protect cardholders from fake businesses being set up to take funds from their credit or debit cards.

• To understand the nature of your business, as they may be liable for financial loss should your business suffer insolvency, bankruptcy, or liquidation. • To prevent money laundering. The banks have stringent anti money-laundering

requirements and these must be satisfied before your merchant account can be set-up.

Supporting documents

The documents you need to supply will depend on the nature of your business and will need to be submitted along with the signed application form.

Supporting documents Required?

An original business bank account statement (less than 3 months old) or an opening letter from your bank which confirms your account details, trading name and address.

Yes

Certified Identification for the main (or only) principal. (See ‘Step 3 - Validating your identity’ on page 13)

Yes

Every business will need to send back the following documents, along with their

signed application form:

You’ll also need to provide some additional information depending on the type of

company that you operate:

The documents listed above are the minimum standard requirements for

submission with a merchant account application. Further information/documentation

may be requested by Elavon during the assessment process.

Type of company Additional supporting documents required

New Limited Companies, Sole Traders or Partnerships

Business plan with an opening balance sheet

Established Limited Companies, Sole Traders or Partnerships

Step 3

Validating your identity

Because your Sage Pay merchant account is a banking facility, it is important that

we validate your identity via a Know Your Customer (KYC) check.

What is a Know Your Customer (KYC) check?

A KYC check is required to satisfy the bank’s anti money-laundering requirements and is used to validate the identity of the main company principal.

Principal 1 (the main principal) must provide:

• A clear and legible copy of one photo ID document from the list opposite.

• The document must be certified according to the guidelines otherwise it won’t be valid.

Accepted identity documents

Certified copy of your passport

Certified copy of your drivers licence

Certified copy of your government ID card

Guidelines for certified documents

1. Take with you a clear and legible copy of the document, along with the original, to any of the following professionals:

• Accountant • Barrister/Advocate

• Embassy, Consulate or High Commission of the country of issue

• Independent Financial Advisor • Notaries

• Official of a bank or other financial sector firm regulated by FSA (for example, a high street bank or building society)

• Solicitor • Doctor

2. The nominated professional must write this exact phrase on the copy of your document:

‘I certify that this is a true copy of the passport/ID Card/driving license of [Mr, Mrs, Miss, Ms or other title followed by full name]’

3. They must then sign the copy of your document, and clearly provide the following information on the same page:

• Full name • Date • Profession • Business address • Business contact number

Here is an example of what a certified document should look like:

I certify that this is a true copy of the passport of Mr Paul Michael Jennings.

Signed by: B Smith

Name: Mr Brian Smith (M.D. Ph.D.) Profession: General Practitioner

E-commerce website requirements

If you’re applying for an e-commerce merchant number, the bank will need to

check your website and simulate placing an order before they can approve your

merchant account application.

Why does the bank carry out these checks?

• To understand the nature of your business and the types of products/services that you offer. • To confirm that the products/services offered on

your website match the nature of your business as per your merchant account application. • To protect cardholders from online fraud. • To confirm that your website complies with card

scheme regulations (Visa/Mastercard).

What if my website is still under development?

You’ll need to provide log-in details to access the development website along with your application.

The checkout process

As part of their checks, the bank will follow your website checkout process as far as possible, ideally up to the point at which Sage Pay takes over.

Please note: You do not require functioning payment pages at this stage.

In order to simulate placing an order, your website should have the following:

• A full product range or a small sample of products to add to the shopping cart/basket. • An order summary showing the total cost of the

order, displayed in the correct currency. • The ability to enter customer information such

Terms and conditions

A full set of terms and conditions should be available on your website and must include the following: • Delivery policy

• Cancellation, Returns & Refunds policies • Privacy policy

Customers must be able to ‘click to accept’ your terms and conditions before proceeding to your website’s payment pages.

Contact information

Full contact details should be available on your website and must include:

• Email address or contact form • Telephone number

• Legal/trading address

(PO Box addresses will not be sufficient)

• The full legal name of your business must be listed somewhere on the site

Card scheme logos

You should display the logos of the card schemes on your website e.g. VISA, Mastercard, Verified by

Step 4

Send your application &

supporting documents

Make sure you enclose all of the relevant supporting documents with all pages of

your signed application form.

Please note: Not submitting all of these documents will slow down your application.

Checklist of what to send:

Application form printed and signed (see pages 4-6)

Business validation documents (see pages 9-10)

One form of certified photo ID for Principal 1 (see pages 11)

E-commerce website details* (see pages 12+13) *E-commerce merchant number applicants only

Send to Sage Pay:

Sage Pay Merchant Services

Sage Pay Europe Ltd

North Park

Newcastle upon Tyne

NE13 9AA

Step 5

Start accepting card payments

What is PCI DSS?

Every merchant storing, transmitting or processing card data is required to meet certain security standards. As a means of ensuring that they do, the Payment Card Industry has put in place a Data Security Standard with which merchants need to comply (PCI DSS). This is to ensure that your business and your customers are protected from theft, fraud, and other security risks resulting from the compromise of card data.

Sage Pay is level 1 (the highest level) PCI DSS compliant and as a merchant you can benefit from our certification if you choose our Form or Server integration option. However, you will still need your own PCI DSS certificate.

Achieving PCI compliance

With Sage Pay and Elavon, achieving PCI DSS compliance isn’t a difficult process.

If you are already PCI compliant and have a compliance certificate from Trustwave or another qualified security assesor, then you will only have to pay a £20 administration fee, and can upload your certificate by visiting the Elavon website:

http://www.elavon.com/pci

The fee for non compliance is £17 per month.

Going live

As soon as the bank is satisfied with your

application, Sage Pay will issue you with a merchant account number (merchant ID) and will set-up your Sage Pay account so that you can start accepting card payments from your customers as quickly as possible.

If you have any questions we’re always available to help.

Once you’re up and running, Sage Pay and Elavon both provide tools to help you

keep track of your transactions.

iMerchantConnect

iMerchantConnect is Elavon’s online reporting and statement tool that allows you to securely monitor your merchant account from any web browser at any time of the day.

This is a free service provided by Elavon, and is a flexible, secure and reliable source of information about your merchant account. To view of demonstration of this service, please visit:

http://www.elavon.com/flash/iMerchantConnect_ demo/index.html

My Sage Pay

My Sage Pay is your online account management and reporting tool. It is also free and enables you to: • Manage your payment gateway account • View transactions processed through Sage Pay • Perform refunds, repeat and cancel payments • Generate transaction reports

• Monitor fraud screening results

• Process mail order/telephone order (MOTO) payments via the Virtual Terminal facility www.sagepay.com/help/demos