Tattoo studio Merchant Accounts & Payment Gateways

Tattoo studios are well known for operating a ‘cash only’ policy, however in recent years some have started to move over to card payments. Due to most tattoo artists operating on a self-employed basis, it can cause issues when it comes to settlements and overall transaction management. Here we look at how to find suitable card processing for tattoo studios and how electronic payments can work for you.

Finding a merchant account for a tattoo studio can be tricky for a number of reasons. Firstly, the transaction volumes tend to be for high amounts (high ticket) but low in volume which some acquiring banks don’t like. Couple that with the fact that most tattoo artists are self-employed and pay a percentage of the transaction to the shop owner can make processing card payments a bit of a headache. Here we look at the options available to tattoo shops in our ultimate guide.

When to comes to applications for tattoo merchant accounts, the way the company is set up is imperative. If operating under sole trader ownership each merchant will need their own merchant account. However, some limited companies choose to act as merchant of record taking their split before settling to the individual artist. 

Tattoo studio payment processors

Although not all payment processors accept applications from tattoo studios, the ones that do tend to offer reasonable rates and long-term processing. To ensure your application has the best possible chance of being accepted first time around it’s important to provide all documentation when requested. For tattoo studios this includes:

• ID and proof of residency for Directors/shareholders
• Transaction history if already accepting card payments
• Cashflow forecast if you don’t accept transactions already
• Licencing documentation
• Incorporation certificate

The acquiring bank may ask for additional information once the application is submitted, however by sending in all the above documents together it will speed up the process. 

Tattoo studio payment providers

The fees involved in accepting card payments at your tattoo studio are broken down into two elements. 

Fixed fees, these include terminal hire, authorisation fee, PCI compliance and a minimum monthly service charge (if applicable) 

Percentage costs, which are a cost per transaction and very depending on payment method i.e. credit cards are more expensive to process than debit cards.

Due to the varying fees and costs, we suggest comparing merchant accounts on a pound for pound basis. If you are new to card payments, we also advise looking to switch accounts every few years to save on costs.

Most card payments transactions take place face to face in a tattoo studio, so finding the right hardware is important. Although you won’t need an all singing all dancing machine, functionality matters. Terminal contracts tend to be for a minimum of 12 months, and for a fixed amount charged monthly, although if you prefer you can buy the machine upfront.  

Some tattoo artists require a chip and pin machine to work outside of the studio too, tattooing at events. So, consider where you’d like to process payments – be it at a fixed till point or via a wireless terminal in individual studios/events. This will determine what type of machine you choose.

Tattoo studio high risk merchant accounts

Have you been declined payment processing or had your account terminated by your existing provider? This could mean that you need alternative payment processing for your tattoo studio. Our experts at Merchant Advice Service HQ can assist in finding suitable long-term accounts to meet your requirements, call us today.

Tattoo studio online payment processing

Some tattoo studios like to take a deposit upon booking or for bespoke designs, which is understandable. As a result, online payments are a great option.

• Pay by Link
• Email invoice
• Pay via website
• Pay via social media channels
• MOTO – via virtual terminal

To process any of the above payments online, your studio will need both a payment gateway and merchant account. A payment gateway facilitates the online element of the transaction, which means it must integrate with your website and your chosen merchant account provider. Speak to our experts today to find the best payment gateway for your tattoo studio.

Tattoo studio merchant account fast settlement

Quite often tattoo studio owners and artists want to receive card transaction settlements quickly, and most can apply for next day settlement. For a small monthly fee card payments funds can be received the following working day, which helps with cash flow including payment of commissions for using the studio branding. 

Tattoo studio business bank accounts

Whether you’re a sole trader or a limited company – you’ll need an active business bank account to settle card payments for your tattoo studio. We’ve teamed up with a partner brokerage who handle business banking applications for tattoo artists. Together we can provide an all-round banking solution. Speak to the team today.