Accept Payments Online Without A Merchant Account

Even without a merchant account it is still possible for you to accept payments. In today’s world of payments everywhere, anytime, your business need to be able to accept credit cards, no matter what you sell. Traditionally, the way to do this was to apply to a bank for a merchant account. These days, however, small businesses have another option—accepting payments using Nochex.

Using Nochex is particularly attractive to the owners of small, start-up businesses. You might have just a few items to sell and have enough things on your plate to deal with without waiting for a bank to deal with your enquiry. This article looks at how credit card processing is done, how small businesses process cards using Nochex, and compare that to a traditional bank merchant account.

Processing Credit Cards

With Nochex you are still able to process credit cards without a merchant account.

Credit card transaction take place so fast and effortlessly you might think very little is actually taking place.

Your customer provides their card details. These are sent by the merchant’s payment service to the merchant’s bank (the acquiring bank). These are passed on to the card network (Visa, MasterCard), and to the customer’s bank (the issuing bank).

The issuing bank approves or declines the transaction request. It then sends a response back through the card network. This goes to the acquiring bank, and ultimately to the merchant’s payment processing solution to complete the sale.

Most businesses handle card transactions by contracting with a bank. Signing up for an internet merchant account isn’t difficult, but does require you to provide a not insubstantial amount of information about yourself and your business. This has to be approved by the bank’s underwriting team. The entire process can take considerable time and effort.

Accept Payments Online Without A Merchant Account.

For businesses that want to take card payments but not go through a tortuous process of applying for a bank merchant account, Nochex is a great alternative. Nochex provides a straightforward account so that you can accept card payments online and deposit funds. Nochex operates a simple way to enrol merchants. In conclusion, a Nochex account is very quick and easy to set up, often with an instant decision on approval.

What are the pros and cons of using Nochex versus a traditional bank merchant account to take payments online? Here are a some things to think about:

Sign-up Process

As mentioned previously, signing up for a Nochex account is relatively quick and easy. While applying for a bank merchant account isn’t difficult, it does require more documentation, can take much longer, and with a high probability the application will eventually be declined.

This is because banks have a low appetite for risk; banks are happiest dealing with large, established businesses. One of the biggest benefits of using Nochex is a much simplified sign-up process.

Transaction Costs

Even without a merchant account Nochex sets its new-business transaction charges at a low flat rate of just 2.9%, which is 0.5% lower than PayPal. We make it very easy to understand our transaction fees, and for a small or start-up business this means our rates will be considerably more economical than those of a bank. Moreover, as a business grows and the transactions increase, the merchant can obtain a lower rate from Nochex.

For established businesses we can offer even lower rates.

Bank charges tend to be less transparent and more complex. Typically a bank merchant account has multiple charges – a monthly service fee, a Payment Card Industry (PCI) charge, a separate security charge, as well as different fees depending on card type, and other factors.


Another thing to note is that bank merchant accounts are invariably for a fixed term (often several years). They may have tie-ins that mean they can only be terminated after a specific period of time. And then only in a specified time-period (usually annually), with penalty clauses for early termination.

In contrast, a Nochex account is pay-as-you-go. You don’t even have to terminate a Nochex account – you just stop using the service.

Volume Limitations

Nochex accounts offer great flexibility in terms of transaction volumes. In fact the number of transactions is completely unlimited. With Nochex accepting payments without a merchant account is entirely possible.

A bank merchant account may limit the volume that can be processed in a specified period of time.

Getting Hold of Your Money

Nochex and bank merchant accounts pay funds directly to a merchant’s account in a timely manner.

Customer Support

Because banks are less interested in small business customers, they don’t typically offer personalised service. Support tends to be via email or online.

Nochex provides merchants with service via a dedicated account manager. Your account manager is accessible via email and over the phone. Through your manager merchants obtain a higher level of customer support including set up assistance, and troubleshooting.


So, how should a small business decide whether to approach a bank for an instant merchant account, or choose Nochex?

Generally, choosing Nochex is the obvious answer. Setting up an account is quick and painless. Having a Nochex account means even the smallest of start-up can build a processing history that can lead to lower rates and more services.

Nochex represents a great option for smaller businesses to start taking payments. The sign up process is fast and easy. Choose Nochex and accept credit card payments online without a merchant account.

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