Ultimate Guide to Tattoo Studio Merchant Accounts
13 December 2022
Written by Libby James
Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.
Tattoo Studio Merchant Accounts
Are you a tattoo studio owner looking to transition from a ‘cash only’ policy to accepting card payments? The process may seem daunting, especially considering the unique nature of the tattoo industry. In this ultimate guide, we’ll walk you through the crucial aspects of finding suitable card processing for your tattoo studio and how electronic payments can streamline your business operations.
Understanding Tattoo Studio Merchant Services
When applying for a tattoo merchant account, the structure of your company is vital. If you operate as a sole trader, each artist will need their own merchant account. However, some limited companies act as the merchant of record, handling splits before settling with individual artists.
Choosing the Right Tattoo Studio Payment Processors
Not all payment processors accept applications from tattoo studios, but those that do often offer reasonable rates and long-term processing. To increase your chances of approval, provide all necessary documentation, including ID, proof of residency, transaction history, cash flow forecast, licensing documentation, and an incorporation certificate.
Breaking Down Tattoo Studio Payment Fees
Fees for accepting card payments at your tattoo studio consist of fixed fees (e.g., terminal hire, authorisation fee, PCI compliance) and percentage costs per transaction. Compare merchant accounts based on their pound-for-pound value, and consider switching accounts every few years to optimise costs.
Navigating Tattoo Studio Credit Card Processing
Most card transactions in tattoo studios are face-to-face, so selecting the right hardware is crucial. Terminal contracts typically last for a minimum of 12 months, with options to either lease or purchase the machine upfront. Consider whether you need a chip and pin machine for off-site tattooing at events.
Dealing with High-Risk Merchant Accounts for Tattoo Studios
If your payment processing has been declined or terminated, you may need an alternative solution. Experts at Merchant Advice Service HQ can assist in finding suitable long-term accounts tailored to your tattoo studio’s needs.
Exploring Online Payment Processing for Tattoo Studios
For studios taking deposits for bookings or bespoke designs, online payments offer convenience. Options include pay by link, email invoices, website payments, social media channels, and Mail Order/Telephone Order (MOTO) via a virtual terminal.
Understanding Tattoo Studio Payment Gateways
To process online payments, your studio needs both a payment gateway and a merchant account. A payment gateway facilitates online transactions, integrating with your website and chosen merchant account provider.
Fast Settlement for Tattoo Studio Merchant Accounts
Tattoo studio owners often prefer quick settlements. For a small monthly fee, card payment funds can be received the next working day, improving cash flow and facilitating timely commission payments.
How Merchant Advice Service Can Help
Navigating the intricacies of setting up card payments for your tattoo studio can be overwhelming. Merchant Advice Service HQ’s experts can guide you through the process, ensuring you find the best solutions tailored to your unique business needs. Contact us today for personalised assistance.
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FAQs
Can tattoo artists operating under a sole trader structure share a merchant account?
No, each tattoo artist operating as a sole trader should have their individual merchant account. This ensures proper tracking of transactions and settlements.
What documents are necessary for the application process when applying for a tattoo studio merchant account?
Required documents include ID and proof of residency for directors/shareholders, transaction history if already accepting card payments, cash flow forecast for non-card transactions, licensing documentation, and an incorporation certificate.
How often should I consider switching merchant accounts for my tattoo studio?
It’s advisable to explore switching merchant accounts every few years. Regularly comparing accounts ensures you’re getting the best value for your business, considering evolving industry standards.
What defines a high-risk merchant account, and does my tattoo studio need one?
High-risk merchant accounts are designed for businesses with elevated risk factors, often due to industry specifics. If you’ve faced challenges with payment processing, it might be worth exploring a high-risk merchant account.
What fees are involved in accepting card payments at a tattoo studio?
Fees are typically categorised into fixed fees (terminal hire, authorisation fee, PCI compliance, and a minimum monthly service charge if applicable) and percentage costs, varying based on payment method (e.g., credit cards are more expensive to process than debit cards).
What type of hardware is recommended for face-to-face card transactions in a tattoo studio?
While an all-encompassing machine may not be necessary, functionality matters. Terminals are often contracted for a minimum of 12 months, and options include leasing or purchasing the machine upfront.
Can tattoo studios accept online payments, and what methods are available?
Yes, tattoo studios can accept online payments. Methods include pay by link, email invoices, website payments, social media channels, and Mail Order/Telephone Order (MOTO) via a virtual terminal.
How quickly can a tattoo studio receive settlements for card transactions, and is there an additional cost for faster settlements?
Tattoo studio owners can opt for next-day settlements for a small monthly fee. This facilitates quicker cash flow, aiding in timely payments, including commissions for studio branding usage.
