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
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