Integrating Online Payment to an E-commerce Site
There are so many ways on how entrepreneurs can accept payments online. This can be in the form of cash, credit card, remittance services, mobile payments, among others. The mechanics are becoming much more friendly and there’s certainly one that can suit your needs.
Here are some of the players in this industry to date.
CASH or Non-Credit Card payments
This service allows you to receive money from BancNet members who have enabled themselves for Internet banking payments. You need to show that your online business model has the ability to generate no less than two hundred fifty thousand pesos (P250,000) worth of revenues per month. The network has a process in place in reviewing the risk and potential of every aspiring merchant who would like to accept online payment.
It clearly indicated as well what types of transactions it will not allow that includes those misrepresenting brands or logos, products or services that promises get-rich-quick schemes, among others.
BancNet is an online payment option for Cebu Pacific, Philippine Airlines, and Victory Liner tickets using ATM cards.
It is also a payment option for mobile ordering of Ayala Cinema tickets, McDonald’s and Max’s products. Some schools have also used this for online payment of tuition.
For government services, the following can be paid through BancNet:
1. Online remittance of SSS (Social Security System) contributions and loan repayments.
2. Online filing and payment of taxes. BancNet is the only ATM consortium accredited by the Bureau of International Revenue for its Electronic Filing and Payment System (EFPS).
3. Enhanced Business Name and Registration System of the Department of Trade and Industry.
DragonPay allows merchants to accept payments through online banking ( including BancNet members who allows interbank fund transfer), over the counter with banks and non-banks (LBC branches, SM Payment Counters, Robinsons Department Stores (RDS), and M.Lhuillier branches nationwide). It has fixed fee for every transaction ranging from 10 to 20 pesos.
For online banking, BancNet charges a fee of P25.00 for every transaction. Some banks also require a Transaction Password, which is different from an account holder’s Login Password, in order to perform a financial transaction. This includes Unionbank, Chinabank, and RCBC.
However, for merchants selling items at 200 pesos and below, they are encouraged to avail of its micropayment fee schedule for a fixed transaction fee of 5%. Set-up fee of P28,000 applies.
Offers online payment acceptance for BancNet, MegaLink, BPI, GCash Online. Transaction settlement is done weekly.
Philippine Seven Corporation (7 Eleven) also provides an online payment solution for merchants where customers can go a 7 Eleven outlet to complete a transaction payment.
If you are not ready yet to become a direct merchant, Cashsense provides an alternative to receive payments through the 7-Connect system.
Accept online payments from the rural areas where commercial banking facilities are not accessible. Let the rural bank function as the payment point for consumers.
Cash and Credit card
Offers ATM, mobile, credit, cash, Paypal, international bank debit, among others in its system. Charges will depend on type of account. It has an initial set-up fee of P25,000 and up depending on business model. Transaction charges ranges depending on solution availed of.
Offers credit card, cash (BancNet, remittance centers, Globe GCash, Smart Money), Paypal, regional, China payments, among others in its system. Packages are dependent on what payment options and features you want to be activated.
Following are some online services accepting credit card payments online.
- Asia Pacific E-Serv Corporation (http://www.aspaconline.com)
- Paynamics Technology (http://www.paynamics.com)
- Payment Processing Corporation (http://www.paymentprocessing.com.ph)
If available in your country and the product is available in small amount denomination, funds can be transferred through this medium.
For overseas buyers who don’t have a credit card or sufficient credit limit, another option is to allow them to pay through a remittance service. Examples are:
- Western Union (http://www.westernunion.com)
- MoneyGram (http://www.moneygram.com)
- Xoom (http://www.xoom.com)
- Cashsense (http://philpay.cashsense.com/)
Courier services with payment collection
Some of the local courier service providers offer payment collection as part of their service. Although the information is not directly published on their site on the rates and scope of this service. Best to inquire directly on the arrangement that can be made.
Although there were earlier forms of virtual currency promoted online, it seems Bitcoin is the one that has gained a certain level of popularity in the Philippines where virtual currency exchange and merchant sites have also come up. As this is volatile currency and not government regulated, due diligence and study must be first made before embarking on the acceptance of this currency in order to be familiar with the risks associated with it.
Accepting payments online
There are so many ways on how entrepreneurs can accept payments online. The mechanics are becoming friendly and there’s certainly one that can suit your needs.
Usually, the Internet Payment Service Provider (IPSP) accredits merchant to accept online payment.
To be able to accept payment, a website visitor visits a website such as http://www.digitalfilipino.com and access a product page. If interested, the visitor clicks on the order or buy button. Afterwards, the order gets redirected to the payment gateway and/or acquirer website to process it for approval. Also check with the credit card issuer for sufficient funds and, if approved, debit the respective credit card account.
Becoming an e-commerce merchant
There are a few steps that one has to take in becoming an e-commerce merchant. This can vary from very lenient to very strict. Such as:
- Business potential. Your business model, past and projected sales are taken into consideration.
- Trading and credit history. Some check the credit and trading history of the people behind the entity applying for a merchant account.
- Surety bond or deposit required. Some require merchants to post a fixed amount that is on hold for the duration of the relationship. This can also be used to cover for charge back or refunds, if necessary.
Depending on the number of products you’re selling, think twice whether you wanted to sell your products directly or go through other channels.
If you’re still starting, you can join existing online sites and offer them commissions to sell your products. This way, you don’t have to worry about the infrastructure immediately. This can be a good alternative until you’re able to set up your own and you’re satisfied with the response of the market.
Big or small – there is a payment solution for you
This payment acceptance aspect has to be taken seriously. If your business will be dependent on purchases made online, having this unresolved can break your business. The good news is there are now many payment providers available ready to accommodate individuals who just wants to earn a sideline up to those who intends to generate high sales volume on a daily basis.
The potential is there. Conduct due diligence and continuous research to find the right payment gateway that suit your needs.
There are a lot of considerations that you have to take once you start going to a full online business. From web site hosting, affiliate/consumer marketing, advertising, payment, fulfillment, legal responsibilities/liabilities. But the choices are very much available and friendly unlike before.
For inquiries about this lesson, contact Janette Toral by sending her a private message via Facebook.