Chargebacks_ setting up the account_ do you need to be a memebe to pay by forrests


									WAYS TO PROCESS ONLINE PAYMENTS What is Online Payment Processing?
Online payment processing refers to the purchase of goods and services over the Internet using a credit or debit card. The financial transaction is processed electronically in ‘real time’. Like face-to-face card transactions, receiving online payments incurs costs.

1. Accept card payments directly :
obtain an Internet Merchant Account from your bank (you will generally need a 2 years trading history and it helps if you already have a merchant account and are accepting face-to-face card transactions), choose a Payment Service Provider / Payment Gateway (additional monthly fee); integrate the Payment Gateway to your website.


2. Choose an Online (Internet) Payment Processor (aka Bureau)
Online/Internet Payment Processors are companies that can accept card payments on your behalf and then forward money to you. They offer a low cost alternative, very suitable for start-up and micro businesses with small turnover. There are numerous Online Payment Processors available, and sometimes it’s hard to choose which one is best for your business and for your website. If at all possible, have a choice of two internet payment processors on your website. Do some research before you decide on who your Online Payment Processor is going to be, and make sure you are familiar with their fees and charges. Use Electronic Payments website ( as a starting point for your research – it’s a great source of information on online payments and offers comparisons between Online Payment Processors based on set up costs, monthly/annual fees, transaction fees, payment timescales, online fraud and charge-backs (when buyers ask their credit card issuer to reverse a transaction that has already been approved), etc. Business discussion forums are a great source of information as you get to know about pros and cons from people who already used or are using the service. Here we’ll look at WorldPay, PayPal, Google Checkout, Nochex and MoneyBookers as some of the the most widely used payment processors in the UK.

PayPal allows you to accept credit cards, debit cards, bank transfers and PayPal account balances. You can receive payments via website or via email. PayPal offers several business packages: Website Payments Standard & Express Checkout packages allow you to accept credit & debit card payments, bank transfer and PayPal balance payments. There are no monthly, set-up or cancellation fees, with transaction fees ranging from 1.4% to 3.4% (depending on your

Written and compiled by Lana Hersak-Mullins (2008)

sales) + 20p for transactions within UK and 1.9% to 3.9% + 20p for transactions with buyers from outside UK. For example, if your monthly sales is less than £1500, and it’s all from UK buyers, you will be charged 3.4% + 20p per transaction. Both Website Payments Standard & Express Checkout are a good option if you are a very small business or are just starting with online sales. Website Payments Pro allows you to accept payments directly on your website but also by phone/fax and mail. There’s no set-up or cancellation fees, but there is £20 monthly fee, with transaction fees ranging from 1.9% to 3.4% + 20p (1.9% to 3.9% + 20p for transactions with buyers from outside UK). Virtual Terminal is like an online version of the credit card swipe machine used in shops. Allows you to accept customer orders by phone, fax or post without having to invest into expensive equipment. No set-up or cancellation fees, or long-term commitments, transaction fees range from 2.2% to 4.4% + 20p. You can take Virtual Terminal as a part of Express Checkout or Website Payments Pro. E-mail payments – to accept credit & debit card, bank and PayPal payments without having a website. You just email your customers a payment request that they can click and pay. No monthly, set-up or cancellation fees, transaction fees: 1.4% - 3.4% + 20p (1.9% to 3.9% + 20p for transactions with buyers from outside UK). Pros of using PayPal: - well-known - easy and free to start using - free eBay and Web payment tools - customers no longer have to have a PayPal account in order to make a payment - Free PayPay shopping basket for your website if you don’t have one - You can withdraw your money from PayPal account whenever you want (£0.25 charge if you withdraw less then £50) Cons of using PayPal: - possibility of chargeback - if there is a dispute with buyer(s), specially on eBay, PayPal is known to sometimes ‘lock’ your account until the dispute is resolved – while the account is ‘locked’ you cannot access or transfer the funds you have there

GOOGLE Checkout
Google Checkout enables you to accept credit and debit card payments online. Standard transaction fee: 1.5% + £0.15 If you are a Google AdWords advertiser, and you have linked Google Checkout and AdWords accounts, then you might be eligible for free transaction processing (for every £1 you spend on AdWords each month, you'll be able to process £10 in sales the following month for free through Google Checkout).

Written and compiled by Lana Hersak-Mullins (2008)

Pros: - no monthly, set up or gateway fees, and transferring funds from your Checkout account to your bank is free - frequent payouts – daily, weekly or monthly - you don’t need Shopping Trolley functionality on your website, Google provides you with HTML code for Buy Now buttons Cons: - your customers need to register with Google Checkout to pay - possibility of chargeback + £7 chargeback fee

NOCHEX is an online payment system that enables businesses and individuals who are trading online to accept instant payments, from any one with a UK credit or debit card. Customers do not need to sign-up / have a Nochex account to make a payment. Seller Account – ideal for micro and start-up businesses wanting to collect credit & debit card payments online. PROS - no set-up, monthly or annual fees, instant availability of your funds, email support, flat rate transaction fee of 2.9% + 20p per transaction. CONS – can accept UK only payments, £100 maximum transaction value, Nochex branded payment page Merchant Account – suitable for merchants of all sizes. PROS - no monthly or annual fees, instant availability of your funds, can accept UK & International Payments, £1000 maximum transaction value, account manager with phone support, configurable branded payment pages CONS – £50 one-off set-up fee, tiered transaction rates starting at 2.9% + 20p

For small businesses without Internet Merchant Bank Account, WorldPay offers both Internet Merchant Account & Payment Service in their WorldDirect account. It enables you to accept debit & credit card payments in multiple currencies. You need to contact them directly to discuss your needs and what type of service is right for your business. The prices vary, but as a guideline: - set up fee - £200 - monthly fee - £30 - transaction fee on UK debit cards – 50p - transaction fee on credit & charge cards – 4.5% - fraud detection charge per transaction – 6p - fraud protection - £20 per month + 1-2% per transaction - charge-backs - £10 per charge-back

Written and compiled by Lana Hersak-Mullins (2008)

With MoneyBookers people can send and receive payments through the Internet – all that is needed is an email address. Pros -

No set-up or monthly fees Fee to receive credit card payments is 8% per transaction, but that includes chargeback guarantee (there are no chargebacks) Payments are received in real time, and works out cheaper than bank transfer or cheque Local payments in 30+ countries available

Cons - It’s free but buyers need to open an account to make a payment – might put some people off. - To get a quote on fees for receiving Email pay and Standard Payments (directly from buyers MoneyBookers account) you need to send an email to including: your website URL, a description of your business, your MoneyBookers account email address or country of residence if you are not a customer yet. - if you are a sole trader you may need to open an Individual instead of Merchant account

Written and compiled by Lana Hersak-Mullins (2008)

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