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Paypal And Other Online Payment Options – What You Need To Know
Processor or Gateway – that is the question You first need to consider the method you’re going to use to process your customers' credit card payments – ‘Processor’ or ‘Gateway’? By the way, neither option is for keeps as you can always change to the one or the other whenever it suits. Processors Processors are much more suited to smaller online businesses than larger ones and if you have an adverse credit history the Processor option may be your only option. PayPal, ChronoPay Bureau and Nochex are some of the major names on the Processing side of the fence. Disadvantages: in many ways, the Processor option is the less professional solution and certainly if issues such as brand integrity are important you. Not only do you and your customer have to wait (sometimes a couple of minutes, or as long as a day) to find out if a transaction has been completed (or not) you may have to visit the Processor’s site to obtain payment as is the case for example with PayPal. Furthermore, there is some disruption to the shopping experience, because your customer has to leave your site to make their payment. Informed customers may be less than impressed when faced with the option of paying via a Processor. Advantages: quick, easy and inexpensive to establish and you don’t normally require a Merchant Account (see below) to process payments. Although the cost per transaction will usually be higher than a Gateway would impose, there are no set up fees and no requirement to put a SSL in place (see below). Gateways Gateways include Skypay, NetBanx and PayPoint, although your bank may be able to handle online transactions just as well as any Gateway and going with your bank means that you’ll not require a separate Merchant Account. A Merchant Account facilitates the movement (online) of funds between the credit card company and your bank, although your own bank may be able to offer you that service. Disadvantages: the chances are that you’ll probably need to establish a Merchant Account for which you’ll need a decent credit history; Gateways are initially more complicated and expensive to set up than Processors. You’ll also need to have a SSL in place (see below). Not an option if you’re looking to set up a quick and simple online payment vehicle. Advantages: An altogether more 'complete', seamless and informative solution than Processors and the only option for larger online businesses concerned with brand values. Transactions happen in real time so you and your customer know if the transaction has been successfully completed or not, and as your customer doesn’t leave your site, the payment process is invisible to them. Transaction fees are generally lower than Processors charge and payments are credited to your account instantly, plus your bookkeeper will have more comprehensive information. If you are planning on being a serious online business player… When someone places an order on your web site and in the process provides confidential and highly personal information such as their address and credit card number for example, they want to be certain that nobody’s going to see that information that shouldn't see it. If your customer-to-be has the slightest doubt on that score, then they’re not going to proceed, it’s as simple as that. Identity theft, confidentiality, security – it makes no difference what it’s called, if you intend taking payments online via a Gateway, then you’ll need to provide a secure shopping environment. Scrambled, like eggs, only more so The answer is a Secure Socket Layer certificate or a SSL. SSL scrambles data sent over the Internet so that if it were intercepted it would be impossible to decipher. Whenever you see a little yellow padlock on a web site’s checkout page, that tells you the site is protected by a SSL; it's also confirmation that you (the Internet business owner) have been checked out and you are who you say you are. So let there be no doubt in your mind: if you’re going to take online payments, then you will need a SSL. Whoever hosts your web site should be able to provide you with a SSL certificate and install it on your site. Article Directory: http://www.articledashboard.com |
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