Nochex offers three types of account: personal, seller and merchant. The most common accounts are the seller and merchant accounts, which allow online payments to be processed through a sellers’ website. All payments made via Nochex support the 3D Secure XML standard designed to reduce the risk of fraudulent card holder not present transactions, and are PCI compliant. Nochex does not require the account holder to procure a bank merchant account or payment gateway.
The personal account allows individuals to send money to other Nochex account holders. Money may also be sent to people without an account, although the recipient must register with Nochex before withdrawing funds. The personal account carries a limit on the balance of £90.
A seller account can be used to process payments up to £100 that originate from a UK registered credit or debit card. There is no cost to set up a seller account and no monthly fees, although an initial fee may be charged for verifying the holder’s credit or debit card (up to £1.99). There is a fee for all transactions.
The merchant account includes additional services such as telephone support from an account manager. Compared to other account services offered by Nochex, with a merchant account a vendor can accept larger payments, and accept payments from registered international credit cards. Merchant account holders are required to maintain a minimum balance in their account to cover for the risk of any chargebacks. This amount can build up from initial trading and is based on account activity. After the account is closed, the retaining balance will be returned in full, providing that no chargebacks occur after the account is closed. There are no monthly fees associated with merchant accounts, although a one-time set up fee does apply. Transaction fees are tiered. Nochex is also integrated into CQout, eBid and other smaller auction sites.
Nochex is an acceptable method of payment on eBay, Nochex CEO Martin Greenbank commented that V.me was integrated into the Nochex payment service, meaning that shoppers at Nochex merchant account holder's online stores have the option of paying with V.me at checkout.
Nochex Ltd (and its trading name Nochex) is a Registered Electronic Money Issuer with the Financial Conduct Authority (Number 900045). Registered Office Regent House, Bath Avenue, Wolverhampton, WV1 4EG, United Kingdom.
Under section 75 of the United Kingdom's Consumer Credit Act, credit card companies are required to refund payments made by customers who failed to receive goods or services if the purchase was made directly from the retailer. Purchases made through online payment services such as Nochex involve three parties—the consumer pays the online payment service for credits or e-money, and the online payment service makes the purchase for the consumer from the retailer. The online payment service is thus legally only responsible for handling the transaction, and not for resolving disputes or providing refunds. Some online payment services do in fact provide refunds in the case of disputes, but Nochex has been cited as a company that does not honor such requests. The Office of Fair Trading has stated that the current law is unclear and they intend to pursue changes that will provide consumers with additional protections. In 2007 Nochex put a warning on their website notifying customers that some banks will add these fees. and reinstated Nochex as an acceptable form of payment.
In 2004, Nochex introduced a fee to seller and personal accounts which was levied against accounts that had been inactive for a period greater than twelve months. Inactive customers were not notified of this newly introduced fee. Where the account balance permitted, Nochex applied this charge at the rate of £2.00 per quarter. In 2006, Nochex revised this fee to £5.00 per quarter. When an account has no funds, Nochex does not charge this fee, and inactive accounts can be reactivated again at any time with payment of a dormant account fee.