-.-.- KAHNAWAKE ECONOMIC DEVELOPMENT COMMISSION -.-.-

HOW TO: WEB PAYMENT PROCESS

When considering payment processing for your ecommerce site there are a variety of payment solutions to choose from. These solutions can manage:

Credit Card
Alternative account payment solutions � it is like an online bank account that users fund with their credit card and then purchase products
E-checks

Below is a sample of three providers with some Key considerations to help you make your decision to move forward with a payment processing provider. If you come across any other providers this is a good check list to use as a comparison.

Key Considerations	Sure Fire	Pay Systems	PayPal
Company details	http://www.sfcommerce.com/about/aboutus.asp?Lang=Eng	http://www.paysystems.com/IBA.htm	http://www.paypal.com/
Payment solutions on offer:	Firepay (an alternative account payment solution) Credit Cards E-Check	Credit Cards E-Check	PayPal accounts ( an alternative account payment solution Your users will require a PayPal account to make a purchase on your site; they can not use their credit cards directly
Base points: Or Discount rate:	2.49% (USD account) 3.50% (CAD account)	3.95%	3.4% (CAD account) *note there may be additional fees from buyers in other countries
Transaction fee:	US$0.35	US$1	CAD$.55
Currency charged in:	Accepts multiple currencies	Accepts multiple currencies	Accepts multi
Currency charged in:	Accepts multiple currencies	Accepts multiple currencies	Accepts multi
Charge back fee:	$15	$25	$10
Set-up fee:	$299	$49	Nil
Monthly Fee	$35	Nil	Nil
Reserve:	5% of monthly turnover	5% of monthly turnover
Fees for Withdrawl of funds	Nil, funds are received in a US bank accounts only	Nil, funds can be received in bank accounts or by check	Yes, CAD $.50, (minimum payout is $15) Free if user has US bank account
Refunds to customers	$.35	Yes, base rate and transaction fee apply	Fee applies after 30 days
Reporting structures:	Yes - Including batching	Yes - Including Batching	Yes
Merchant tools	No	Yes, Includes shopping carts Reoccurring payments and subscriptions	Yes, Shopping carts Reoccurring payments, subscriptions and donations
Integration	Very detailed � but with full instructions and customer support	Simple with full instructions and customer support	Simple with full instructions and customer support Account Approval can take longer than a month
Bank a/c set up	Yes - US bank	No	Credit card needed
Call Centre support for your buyers	Merchant handles	Pay systems handles	PayPal handles for business and premier accounts
Gateway fee	No	No	No
AVS fee	don't use	No	No
Provides test accounts	Yes	No	No
Need to purchase an SSL certificate	Yes	No	No
Final comments	Surefire is great if you want a lot of control over the transaction process.	Paysystems is great if you want to have a third party handle the majority your transactions	PayPal is widely used; making it a great alternative to using credit cards online

Some definitions

Base points: Is the cut of the sale the payment processor takes for themselves
Charge backs: When credit card companies reverse transactions at request of it customers. As a note for merchants, charge backs destroy your credit rating and should be avoided.
Reserve: Is a safety deposit, the third party processor holds. It is a percentage of your first months expected sales
Gate Way fee: Fee for processing or holding money
AVS fee: Credit card authorization checking

SSL Certificate

Do you need to purchase a SSL (secure socket layer) certificate for your website? This certificate protects the information the user enters on the site pre-purchase during transaction or purchasing phase.
Companies that provide SSL certificates:

Your hosting facility may provide this for free or charge a small fee � you have less autonomy with this option
Verisign
Thawte