How your card terminal provider affects your merchant cash advance
By Helm, Business Funding Specialists
- Most major UK card terminal providers are supported by MCA funders
- Your terminal provider needs to share transaction data for assessment and repayment collection
- Switching terminal providers mid-advance can create complications
- Some providers offer faster integration than others
When you apply for a merchant cash advance, your card terminal provider is a key part of the process. The MCA provider needs to access your transaction data to assess your application, and then needs to collect the agreed repayment percentage from your daily card sales.
Understanding how this works, and whether your terminal provider is compatible, can save you time and ensure a smooth application.
Why your terminal provider matters
The entire merchant cash advance model relies on access to your card transaction data. Your terminal provider is the source of this data. The MCA provider needs two things from them: historical transaction data to assess your application, and an ongoing data feed or split payment mechanism to collect repayments.
If your terminal provider does not support these integrations, the MCA provider may not be able to work with you, or the process may take longer.
Which terminal providers are supported?
Most major UK card terminal providers are supported by MCA funders. Here is an overview of common providers and their typical compatibility.
| Terminal provider | Widely supported | Notes |
|---|---|---|
| Worldpay | Yes | One of the most commonly integrated providers |
| Barclaycard | Yes | Strong support across most MCA funders |
| Takepayments | Yes | Growing integration with MCA providers |
| SumUp | Yes | Popular with smaller businesses |
| Square | Yes | Well supported for both in-person and online |
| Zettle (PayPal) | Yes | Good support for small and medium businesses |
| Stripe | Yes | Primary option for ecommerce businesses |
| Dojo | Yes | Increasingly popular with hospitality businesses |
| Clover | Yes | Good integration options available |
How repayment collection works
There are two main methods that MCA providers use to collect repayments from your card transactions.
The first is a split payment arrangement where the terminal provider automatically divides each transaction, sending the agreed percentage to the MCA provider and the remainder to your bank account. The second is a sweep arrangement where the full transaction amount goes to your bank account and the MCA provider collects the agreed percentage separately, usually daily.
- Split payment: Automated at the terminal level, seamless for the business owner
- Daily sweep: Collected from your bank account based on the previous day's card sales
- The method used depends on your terminal provider and the MCA funder's preferences
What if you want to switch terminal providers?
If you are considering switching your card terminal provider while repaying a merchant cash advance, you need to inform your MCA provider first. The switch could disrupt the repayment collection mechanism.
Most MCA providers can transition to a new terminal provider, but it may take a few days to set up the new integration. Plan the switch carefully and give your MCA provider advance notice.
Choosing a terminal provider with MCA in mind
If you are considering a merchant cash advance in the future, it is worth choosing a terminal provider that is widely supported by MCA funders.
- Ask potential terminal providers whether they support MCA integrations
- Choose a provider that offers transparent transaction reporting
- Avoid long-term terminal contracts that lock you in if you need to switch
- Consider providers that offer both in-person and online payment processing
Frequently asked questions
Can I get an MCA with any card terminal provider?
Most major UK providers are supported, but compatibility varies between MCA funders. Check with your chosen MCA provider before applying to confirm your terminal provider is compatible.
Do I need to change my terminal provider to get an MCA?
In most cases, no. If your current provider is widely supported, you should not need to switch. Only in rare cases where a provider is not compatible might you need to consider alternatives.
Will my customers notice any difference?
No. The repayment collection happens behind the scenes. Your customers will not see any change in how they pay or receive receipts.
Can I use a mobile card reader for an MCA?
Yes. Providers like SumUp, Square, and Zettle are mobile-first and are widely supported by MCA funders.