Online Electronic Payment Systems
To compete in the e-commerce world, businesses need to
process transactions quickly and securely. Authorize.Net
global payment solutions ensures both speed and accuracy
- Unlimited transactions from nearly anywhere in the world.
– growth with your business by supporting an unlimited number of
transactions and any business model – Internet, call centre, broadband,
wireless and retail.
- Unrestricted number of users with one account – ideal for large sales forces.
- Experienced technical support 7 days a week, 365 days a year.
To sell on the web you will need to be able to
accept payments from your customers. There are many different payments methods to do this, such
Card Payments – e.g. Visa, Access or any other credit cards.
Payments – made by Microsoft Passport and Mondex Schemes.
Cheque Payments – used in exactly the same way as current cheque
processing systems other than the fact that electronic cheques are
generated and exchanged online.
Payments – these are payments that are made as a result of using a service
on the Internet, e.g. pay per click payments for ads to flow traffic to a
site. Each click is about 5 pence
so you won’t want to transfer the payment for every click, micro payment
works by calculating the clicks until it reaches a specified threshold and
then the payment will be transferred.
Setting up an Account
To accept payments on-line, you will need to set up a
merchant account. This is an account that accepts and holds credit card
A merchant account for online
business is similar to a merchant account for mail order business – the risk
is associated with the fact that you do not have the physical credit card to
How it works? Once a
relationship with the provider [i.e. bank] of the account is set up, the bank
will deposit daily credit card sales into the merchants account after deducting
To prevent fraud, it is important to implement
enough security on your network so that it is protected without limiting your
users. Secure Socket Layer (SSL) is
a technology that encrypts or codes packets of information sent over the
internet so that it is the sender and receiver only who are able to open and
read the information. Combination of various preventative measures help use to
detect fraud, such as SSL, batching (authorisations), and real time (makes
decisions immediately). After a customer enters his/her credit card details, batching and real time is to
approve or decline a purchase.
What you need to set up an on-line electronic payment
- A Merchant Account for credit card acceptances.
- A order form on the site (this can be created using HTML, ColdFusion, Java, ASP etc).
- Preferably the form should be encrypt using SSL (Secure Sockets Layer).
- The ordering page is then placed on a secure server.
Using 3rd party’s to accept on-line electronic
There are so many third party payment solutions available,
the more popular ones are :-
: enables individuals or businesses with email addresses to securely, easily
and quickly send and receive payments online. PayPal’s service builds on the existing financial infrastructure of
bank accounts and credit cards and utilises the worlds most advanced
propriety fraud prevention systems to create a safe, global, real-time
Pay : allows businesses to accepts payments over the internet, by phone,
fax, email, accept Visa, MasterCard, Diners, American Express and all major
credit cards as well as Switch, Laser and Electron. Even bank transfers,
instalments, standing-order, and direct-debit style payments. It is a 24/7 system.
Do it yourself or use a third Party?
Do it yourself
be expensive to start off with as there are many costs involved
will also have to overcome many issues – must open a Merchant Account to
accept credit-card payments, Order forms on site, sort out security issues,
payment processing software, issue of fraud etc.
the long run, you will save costs by saving on payments to third parties.
anything goes wrong, you will be the first to know so amendments can be made
Using a Third Party
to start with
need to worry about set-up and buying software, securiry solutions as
everything will come in a package.
Third Party will run everything so you will have more time to think about
other aspects of your business
are able to provide more support to your customers anywhere in the world,