Setting
up a “Chip and Pin” Service in the Practice
During
February 2007 First Practice Management carried out a survey of practice
managers on the Discussion Forum and thanks are expressed to those
managers who responded. From the information provided and following
a number of other enquiries we do not feel that this is the type of
service that we could offer through the FPM Buying Club.
The survey
revealed that an average non-dispensing medical practice probably
accepts in the region of 10 to 15 cheques a week and a number of cash
payments. Depending on the tariff which practices have agreed with
their bank, the cost of paying individual cheques into a bank account
is between zero and 98p and deposits of cash can cost from zero up
to £5.00 per £100.
Most
banks as well as card bureaux offer chip and pin services to their
clients and the costing of these is very much dependent on the customer,
the expected card turnover and the average cost of a transaction.
Another
consideration is that a chip and pin service will require easy access
to a telephone line although this does not need to be exclusive use.
There are different types of chip and pin machines depending on whether
you require a portable one, like in restaurants, or a fixed one on
the front counter and if you have a glass screen you will also need
a keypad outside the screen while the machine itself sits inside reception.
Other considerations include security of the machine and the possible
need for a separate system in a dispensary or in branch surgeries.
Charges
often include a set-up fee and a monthly rental charge for the unit
depending on the type required and there are also charges for each
transaction. Look carefully at the overall package being offered.
Examples
of Chip & Pin providers
Please
note, the prices shown below were correct at the time of writing but
may have changed in the interim
1. Streamline
Merchant Services (www.streamline.co.uk)
claim to provide 50% of chip and pin transactions in the UK. The amount
each business pays depends on a number of factors including card turnover
and average transaction value. Because businesses tend to have varying
requirements, each customer needs to discuss charges with the Streamline
team direct. There is a Lite user tariff which would appear to be
ideal for most practices (annual card turnover of up to £30,000).
An example of charges is a set-up fee of £175 + VAT and a monthly
rental of £5.00 + VAT. Each credit card transaction would cost
up to 3.75% (depending on the card provider) and each debit card transaction
up to 60p.
2. Barclays
Bank - example charges are £14.95 to £20.00 a month, plus
between 1.85% and 1.95% for credit cards and between 29p and 1.95%
for debit cards – there were no set-up fees in these examples.
3. CardSave
(www.cardsave.net)
- example charges are £23.95 a month, plus 2.5% on credit card
and 35p on debit card transactions - no set-up fees.
Hopefully
this gives an idea of the types of charges that companies will make
to provide a chip and pin service and will enable managers to calculate
current charges for cheque and cash transactions and decide if a move
to chip and pin is worthwhile and cost efficient for the practice.
It must
be emphasised that all of the charges listed above are examples only
and are provided to give some idea of what it could cost your practice
to use these services.
If you
are considering a chip and pin service talk to your bank first and
if their charges appear to be more than those of Streamline Merchant
Services ask Streamline for a quote. Streamline Merchant Services
are part of the Royal Bank of Scotland Group.
First
Practice Management
March 2007
