Online Payments

If you are creating an online business, or using your Web site to promote a traditional business, sooner or later you will want to be able to accept payments online.

There are two main options:

• using a 3rd party payment processing service
• getting a merchant account

3rd party payment processing services such as PayPal are quick and easy to set up. They generally charge a small fee per transaction. These offer a sensible entry to e-commerce for the small or start-up business.

A merchant account is set up with your bank. These may be more economical for sites expecting to do a large amount of online business. The bank will need to satisfy itself of certain points about your business and may take time in granting a merchant account. The process is easier if you already have an account for a traditional business.

Although people are spending money online in greater amounts than ever there is still a perception that typing credoit card numbers into a Web browser is risky, particularly where the customer is doing business with a site they may not have heard of before. Some form of reassurance is necessary to maximize online sales.

• Ensure that links to your site's security policy are displayed throughout the site. This policy should include details of how online transactions are handled, what steps have been taken to safeguard customers' financial details, and what protection is offered to the customer.
• If you are using a 3rd party solution, provide a link to the provider's Web site.
• Always ensure that any sensitive information is encyrted before beiung sent across the Web. Use - or be certain yoour payment processor uses - a secure server. This is indicated within the Web browser, eg by a closed padlock in Internet Explorer.

The following articles provide further guidance on selecting an online payment solution for your site:

If Paypal is NOT the One, What Else is there? (Marsha Maung)
Internet Marketing Strategies - Part Five: Accepting Payment Through Your
Web Site (Shelley Lowery)
Moving the Money - Online Payment Options (Eric Lester)
Online Payment Systems - Options for Accepting Money Online (Marjorie Malone)