Choosing
an Online Payment System to Process e-Sales
From Visa cards to Paypal, you need an online payment system...
Keep your customers happy by organizing your payment options.
There
are some very slick ways to transfer money around the globe,
in todays, lightning fast world, both your customers and your
suppliers demand payment in the click of a mouse.
Anyone
using slow, or an awkward payment processors had better wake
up!
The
processing companies have been fiercely competing with each
other for years now, every so often, they revamp and recalibrate.
These overhauls usually result in a safer, quicker or easier
online transaction.
Anyone
staring out in business must have a way to offer customers a
safe and fast transfer of their hard earned cash. If you choose
an unfamiliar card processor, how can you gain the trust of
your audience? You won't.
Have
you ever been in the situation where you see a product, reach
for the plastic, start the process, only to find a strange new
payment processor that wants to know lots of personal details
about you? This can make you think twice, and many times, a
sale is lost in that crucial moment.
Start
with the most widely accepted, and backup with a second and
third option. This has a treble safeguard built in.
Firstly,
just like high street banks, online payment processors, occasionally
upset people with rules and regulations and they look elsewhere,
it is a courteous policy to provide an alternative processor
for these customers.
Almost
unbelievably, some areas of the world are still unable to process
money with all the providers; the second safeguard is to offer
a payment option that can service their needs.
Thirdly,
you must protect yourself, if a processor receives a complaint
against you, or finds one of its more obscure rules to inflict
upon you; then your facility can be put on stop instantly. You
must have some backup in place before that happens.
Since its acquisition by EBay, Paypal
has become dominant in peoples acceptance of paying for goods
online. This acceptance makes it the first choice as an online
payment system for online retailers across the globe.
It
is free to use, and free
to join, Paypal services 45 Countries and it boasts
of being free for buyers and free to set up for sellers, no
wonder it grew so big so fast. Paypal's concept was the ability
to pay anyone with an email address, a wonderful idea that deserves
merit; this has been completely sidetracked by the viral element
of the marketing behind the scenes, to become a major online
merchant.
Once
sneered at by the banking system, Paypal has earned its position
as the people's provider, by reacting quickly to an opportunity
and evolving to suit the needs of its customers.
Paypal
is the main player, it has become the market leader in the biggest
market the world has ever seen, and it continues to evolve,
I predict that Paypal will move into the league of Microsoft
within the next decade, love it or hate it, you must have it.
There
are alternatives and these should be adopted to suit your chosen
market.
To
suit the needs of your customers in the Countries, not serviced
by Paypal you need a merchant that is widely acceptable.
2checkout
will turn plastic into cash for you, but it is presently wrestling
with a transition from version 1 to version 2.
It
can convert any credit card into money in your account. Along
with the changes, came new rules, for instance, you cannot name
it a credit card processor, or payment gateway, you must call
it an authorized retailer or out-sourced vendor solution. They
appear to be boxed into a corner, and will loose market share,
watch this space.
This
is the path they have chosen, I personally think this is a bad
business move, and time will tell, but
for the present 2checkout are widely recognized and they are
a safe bet to back up Paypal on your site. On the downside,
they charge a fee for new accounts, the charge is $49 but it
is only a one off payment.
My
next choice is Stormpay,
they set out, hot on the heels of Paypal, offering a similar
service. At first it was difficult to work with, but Stormpay
has reacted to market trends and has matured to a level that
is now acceptable in the mainstream business community.
With
the soon to be released issue of the Stormpay debit card, funds
can be withdrawn, directly from an ATM. They boldly claim to
be able to offer more ways to send money, sell items and receive
payments than any other internet provider.
It
is very much the little brother of Paypal, but is gaining ground
daily. I have watched its maturity over the past couple of years,
and, although it has a long way to go, all the signs are in
place that Stormpay will sit next to Paypal on many retailers'
sites for years to come.
With
less flexibility and a free signup comes Clickbank.
Many people adore clickbank for the way it allows other people
to sell your product for a commission on the sale.
You
see clickbank has over 100,000 vendors that love to sell other
peoples stuff, for a commission. How it works is like this,
you place a product for sale on Clickbank, you set the price
and commission percentage, you then create a sales page on your
site. You allow Clickbank vendors to drive people to your site,
using their unique Clickbank ID. If a buyer buys from one of
Clickbank's affiliate vendors then you pay a commission on that
sale, this is a very powerful method of selling product.
No
matter how good your web site and advertising is, it cannot
compete with the power of the Clickbank resellers helping you
out, and don't forget, they also drive traffic to your site.
(click
here for more information)
You
can only sell digitally delivered products like ebooks and software,
this limits your ranges, but boosts your speed of delivery,
making the transaction instant. Payments from Clickbank to you
are twice a month.
You
may sell your own product or any one of the products in the
Clickbank
marketplace, your customers can pay by Visa, MasterCard,
American Express, Discover, Eurocard, Bravo, Diners Club, Carte
Blanche, JCB, and online checks, they even accept PayPal.
For
a straightforward, recognized, payment provider, using its own
merchant facilities, try Worldpay.
They operate in most languages and currencies around the world.
Go to http://worldpay.com/ and click on the flag of your language,
this takes you to the main page for the site, best suited to
your business needs.
Many
people like to keep their eye on the new kids on the block,
if you are one of these people then you should take a look at
PayDotCom.com
I was a beta tester for this system and it looks set to mature
quickly. Signup
is free and bonuses are given for referrals. PayDotCom
is the first to rival Clickbank and by doing so, it has opened
up a whole new area of competition.
As
with all things related to your business, any payment options
given on your site are just another tool. An online
payment system should be chosen firstly, to suit
your customers’ needs and demands, and then secondly,
you must adapt your customer needs to suit your business. This
customer focus will pay dividends in increased sales and acceptance.
About
the Author: Pete Lauder is a UK based entrepreneur
with many years of online marketing, this article, and many
others about setting up your online business can be found at
http://homebizassistant.com
Important:
Click here to learn more about PayDotCom vs. ClickBank!
The
link above will take you to a thorough discussion of the differences
between the two, where you can also post your own thoughts or
questions about ClickBank, PayDotCom or online payment systems
in general.