They refused us on an entry level, even though we were better funded than most traditional start-ups I've spoken to. Whilst we were drowning our misfortune in the pub that evening after the meeting, we realised another thing that the card company salesman had told us. There was a stark choice for him - either he could trade online without card company approval and take the risk of being found out, or he could go offshore and locate his new business in another country altogether. The costs of trading there coupled with the attitude of the banks as well as the entirely different approach to start-up business and finance eventually convinced him. The impact of decisions like this on the emerging British e-commerce marketplace is very significant indeed.
Some merchants have to break their contracts with the banks just to trade online.
Everyone agrees that costs are higher than they should be and this has a real impact on the bottom line. Significant words indeed, and whilst these words are all very well, when it comes to the actions that will back up this newfound commitment, the real issue is not so much the attitude of the Government, as that of the banks. Brian Richman is a consultant and software specialist. Inc. All Rights Reserved.