Banking for under 18s

[Bob]

I will be setting up as a sole trader soon, which means I don't need to have a business bank account. For easiness at the moment, I am going to set up an under 18's account via the internet.

Is it perfectly okay to do this? All I will be doing is storing money in it, as when I get to a certain amount on Paypal, I will be moving it into the account for safety reasons. Then, I may be taking money out again. Basically what most people do.

One more quick question; can under 18's get a merchant account?

Thanks

[Mark]

You can't operate a PayPal account under 18 so I think it's a non-starter...

[Bob]

Originally Posted by Mark

You can't operate a PayPal account under 18 so I think it's a non-starter...

I thought someone was going to say that
I can get one of my parents to open the account, there isn't really any other option

[paultgreen]

Or just lie and hope paypal don't check you out. (did I just suggest that??)

Banks tend to get p155ed off if they realise you're operating a business through a personal account - more for the fact they miss out on the opportunity to charge you and supply you insurance quotes every five minutes than anything else I think.

[Bob]

Originally Posted by paultgreen

Or just lie and hope paypal don't check you out. (did I just suggest that??)

Banks tend to get p155ed off if they realise you're operating a business through a personal account - more for the fact they miss out on the opportunity to charge you and supply you insurance quotes every five minutes than anything else I think.

How would they know I am operating a business? It would simply be putting money in and taking money out.

[paultgreen]

I don't know - but they have ways. I was sussed out about 10 years ago and advised that if I was running a business I would be breaching my t's and c's and that I could have a year's free banking if I set up a second account - so I did.

I'm guessing it's down to usage patterns.

[Bob]

Originally Posted by paultgreen

I don't know - but they have ways. I was sussed out about 10 years ago and advised that if I was running a business I would be breaching my t's and c's and that I could have a year's free banking if I set up a second account - so I did.

I'm guessing it's down to usage patterns.

Hmm.
Well its not looking good at the moment. I can't legally use paypal under 18, so unless I use it and keep a low profile, then i'm a tad stuck.

Do you know if there is an age limit for a merchant account?

[paultgreen]

Am I allowed to be blunt here? Get off your ar$e and make a few appointments with managers, speak with them about what you want to do.

The main reason that banks need you to be over 18 as far as I can see are that they like to charge you when you bounce things, or let you accidentally go overdrawn - if you're under 18 then they cannot legally take you overdrawn, as giving credit to a minor is a big no-no.

A merchant account will need you to be over 18, as due to the fact you can do refunds on the system, and there's a chance that money could be recalled from you up to 180 after the event as a chargeback, should the purchaser dispute any part of the transaction, which could in theory leave you in debt to the card company, hence them giving you a credit facility.

Will a parent go guarantor for you? If you've got a good business plan, there seems no logic in holding off because of silly things like the fundamentals.

[Bob]

Originally Posted by paultgreen

Am I allowed to be blunt here? Get off your ar$e and make a few appointments with managers, speak with them about what you want to do.

The main reason that banks need you to be over 18 as far as I can see are that they like to charge you when you bounce things, or let you accidentally go overdrawn - if you're under 18 then they cannot legally take you overdrawn, as giving credit to a minor is a big no-no.

A merchant account will need you to be over 18, as due to the fact you can do refunds on the system, and there's a chance that money could be recalled from you up to 180 after the event as a chargeback, should the purchaser dispute any part of the transaction, which could in theory leave you in debt to the card company, hence them giving you a credit facility.

Will a parent go guarantor for you? If you've got a good business plan, there seems no logic in holding off because of silly things like the fundamentals.

So if I have a parent as a guarantor, then I can have a merchant account?

[paulfeakins]

Well done for starting a business so young! How old are you and what's your business (or what will it be)?