small business payment systems

[azeds]

Hey there,
im just curious to know about how to acquire all the different forms of payment methods.
I have set up a paypal account, but im interested in knowing how i would be able to accept visa/master card, and other forms of payment

[AgentMail]

Hi Azeds,

It depends a little on the type of business you operate. For an online business, or mail order type setup, I have previously used EzyPay - http://www.ezypay.com.au/ which is a fantastic, low cost method of running both credit card and direct debit payments. No nasty setup fees or EFTPOS terminals, and simple forms for your customer to complete and sign.

Hope this helps,

Carl

[John Debrincat]

Originally Posted by azeds

Hey there,
im just curious to know about how to acquire all the different forms of payment methods.
I have set up a paypal account, but im interested in knowing how i would be able to accept visa/master card, and other forms of payment

Hi Azeds,

I am assuming you mean from a website?

You can accept Visa and MasterCard via PayPal not just payment by PayPal accounts. You need to change a setting in your PayPal merchant control panel to allow payments from non PayPal accounts.

If you want to use a payment gateway then you need to setup an Online Merchant Bank account. You will need to go speak with your bank to determine what fees apply and if there are any issues. Once you have an online merchant account then you can setup a payment gateway. There are a number of choices like eWAY, SecurePay, Payment Express and TNSI they are the 4 most popular. They will charge you a setup fee and then a monthly or transaction fee. The terms differ between providers. You will need to have a developer (or your web provider) enable the gateway on your website and you will also need an SSL certificate.

Regards

John

[Beetlebox]

Hi All, Very informative post, and a good read.

A couple of queries with respect to my situation, (if you would please indulge me): I'm starting a new business which provides a service so I don't expect a lot of refunds (ie no returns). I'll probably have between 60 and 200 transactions each month. I expect 75% of bookings online, and the rest on the phone.

1. Any recommendations on how to deal with payments?

2. If you need to have a merchant bank account if you use a payment service provider (like Eway), then why not just use the bank's gateway. That is, whats the benefit of using a 3rd party provider for the gateway? What are the cost considerations (differences)?

3. If you are going for a professional looking business (ie not a hobby shop), does Paypal scream "bush league" (do you use the term "bush league" in Australia?)

4. Google Checkout, any thoughts?
Thanks!

[John Debrincat]

Originally Posted by bluetooth

4. Google Checkout, any thoughts?
Thanks!

The answer to this one is that Google Checkout is not available for Australia. So if the business is for Australia the answer is no.

Following are the other answers from your post on Whirlpool - whrl.pl/Rc15HH

Originally Posted by bluetooth

I'm starting a new business which provides a service so I don't expect a lot of refunds (ie no returns).

If you are accepting payment in advance for the booking or a deposit then I think you will find that banks will have a different view on this to you. I suspect that they will actually see a higher risk of no-shows or refund requests. So you should check this and if you have an existing trading history it might help but as you are starting a new business you will need a business plan for the banks.

Originally Posted by bluetooth

1. Any recommendations on how to deal with payments?

In most service situations it is acceptable to ask for a deposit online and final payment on delivery. It is not that usual to get all the money upfront unless it is accommodation or air travel. So basically it depends what the service is.

Originally Posted by bluetooth

then why not just use the bank's gateway.

Of course you can it comes down to a couple of factors:

1. What gateways does the solution that you use support.
2. It is our experience that 3rd party gateways like eWay, Payment Express etc provide a better level of customer support and the admin system they provide is far better than any of the banks.
3. Some like eWay provide additional anti-fraud online

Originally Posted by bluetooth

What are the cost considerations (differences)?

Not a great deal of difference really when you analyse it. You will pay a fee for your online merchant account and you will pay a transaction merchant fee negotiated with the bank somewhere between 1% - 2% / trans. The gateway will charge a setup cost sometimes waived + transaction fee around 0.20c - 0.50c depends on the gateway and volume. You may also pay a annual fee but again sometimes you can avoid that based on volume.

Originally Posted by bluetooth

3. If you are going for a professional looking business (ie not a hobby shop), does Paypal scream "bush league"

Sure we use 'bush league' here as well. Anyway PayPal is used by most large retailers and handles around 50% of online payments in Australia. They have over 2.5 million account holders here as well. So if used in conjunction with other payment methods they can enhance your professionalism and appeal to customers.

Merry Christmas

John

[UberCable]

The Google Checkout thing is annoying. Every few months I re-check to see if it's available in Australia, to no avail. I'm not sure why it still isn't available -- Australia is a decent-sized market.

[Phillip P]

Originally Posted by UberCable

The Google Checkout thing is annoying. Every few months I re-check to see if it's available in Australia, to no avail. I'm not sure why it still isn't available -- Australia is a decent-sized market.

It actually isnt yet... but thats ok let them get all the bugs out and we will have it when its awesome

For this post i would never use a banks system directory every again as lack of support lack of api and nightmare if something goes wrong.

Eway and the likes already have an API to most of the banks through securepay platform and can be added to nearly any website without costing you an arm and a leg.

[Khalid Adam]

Start with paypal. in a year or so, look to other options. Invest most of your time on sales, marketing and creating a sustainable business.

You'll be grateful in a couple of years when you realise that most of your competition have folded or about to.

[John Debrincat]

Following is a link to the PowerPoint slides from the Payment Systems section of the Online Retailer Workshops at OR 2011 hope you find them useful - tinyurl.com/OR2011WS-Payments

John

[John Debrincat]

Originally Posted by hymstrategies

Start with paypal. in a year or so, look to other options. Invest most of your time on sales, marketing and creating a sustainable business.

How to collect payments is a very strategic issue and is a core part of sales, marketing and creating a sustainable business. Too often we see new customers who have not thought through the very important issues of payment and shipping. Both of these are a key part of your unique selling proposition and competitive advantage. If done correctly they can help your online business be sustainable and profitable.

Unfortunately on the other hand there are many people that advise throwing money at marketing and SEO before the very basics are right. PayPal may be a good starting point and then again maybe it is not. But don't be fooled getting the core business issues right is essential.

John