Payment Providers-Services and Gateways

Payment  providers are usually offered with ecommerce (shopping/store) packages. Therefore when evaluating an online shopping cart solution or ecommerce hosting package you need to be aware of the payment providers that are supported by that package.

There are many companies; both UK and USA based, which provide payment services and they vary considerably in the services they offer and their rates.

 It is important to be aware of what type of payment services you require both now and it the future and what level and value of sales you expect.

It is also important to be aware of any restrictions that apply to foreign countries/companies when choosing a foreign payment provider i.e. one not registered in the same country as yourself.

Here is a list of some fundamental questions you should ask when choosing a payment provider service.

• Is there a set up cost?
• What regular charges (annual / monthly) apply to the service?
• How are individual transactions charged?
• What is the payment frequency?

• Is a bond required?
• How are charge-backs handled?
• Do I need a Merchant account to use the service?
• What security measures are in place?
• Is there any software provided or are specific e-commerce packages recommended?
• Which banks operate with the service?
• Will the service accept all credit cards?
• Will the service accept all debit cards?
• What currencies are supported?
• How is settlement made i.e. into what bank account?

• Do I need a bank account in that county to receive payments?
• Can VAT and other Taxes be handled?
• Can it handle subscription services?
• Does it support offline processing?
• Is a support service included in the basic price?
• Is there a minimum contract period?
• Are shopping carts also included?
• Are payment buttons provided?
  
  

You should remember that it is very rare to choose a payment provider in isolation. In General you choose the hosting company, ecommerce package and then choose the payment provider from the supported list.

It is highly unusual to decide on a payment provider like WorldPay and then look for ecommerce packages that support it.

Without a doubt the most popular payment provider is PayPal and it is supported by all ecommerce packages.

 Because PayPal offers more than just payment provider services it is generally the only one required by small businesses selling online.

Related articles and resources:

• Merchant Accounts for Ecommerce Websites
• Merchant Account Alternatives-Third Party Merchant Accounts
• Sales Volume to Justify Merchant Account