Posted: Fri 23rd Dec, 2011
Online payment systems is a broad term relating to facilities involving electronic payment mostly in the form of e-commerce websites. It is important to know which type of online payment services suits your business best, this could be traditional credit and debit or one of the new technologies such as a digital wallet, e-cash or mobile payment.
These other forms of online payment can involve a customer paying for your service by sending a text message and having an amount billed to the mobile phone or you can use similar new features such Google Wallet which is mentioned in this previous blog post here.
The most popular form of accepting credit card payment for an online business is to allow a third party to complete the transactions for you, this involves a ‘Payment Service Provider’ and makes life a lot easier when dealing with large amounts of payments all coming from different customer issuing banks.
Almost 90% of all online retail transactions occur via credit cards and it would be hard for any business to progress without offering this service to their customers, consumers find it more convenient than sending cheques and they also do not have to wait for the funds to be available in their bank account.
We have talked previously about the necessary steps in setting up a payment gateway, this involves applying for an online merchant account which is usually included with a Payment Service Provider such as Sagepay. Seymour Direct have a long experience in dealing with acquiring banks and because we set up merchant accounts in bulk, you have a better chance of being approved with lower transaction fees through us.
Increased security measures that have been put in place such as the Card Verification Number (C.V.N) has made online shopping even more accepted by people concerned about entering their credit card details online. The Card Verification Number is 3 digits and found near the signature strip on the reverse of the card, when a person is taken to the online checkout they must enter this to confirm they are the genuine card holder.
Another form of online payment processing is called a Virtual Terminal, which allows a merchant to process payments over the internet if a customer has made a purchase over the telephone, fax or via mail. All online payment services offered by Seymour Direct are PCI compliant and use the best software for ensuring data send between networks is encrypted and secure from intruders.
By Martin Roberts (Google+)