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Gateway compatibility
If you have already purchased a shopping cart
package, ensure that the payment gateway
service is compatible. If a service is not
listed, contact the shopping cart vendor for
clarification. Many shopping cart software
companies are happy to support other payment
gateway services if there is a demand for it,
and usually at no extra cost. If you haven't yet selected a shopping cart,
get a list of supported applications from the
payment gateway service provider. A payment
gateway may offer great pricing, but if the
range of shopping carts or storefront
software it supports is limited, the whole
process of setting up for taking online
payments may cost a lot more than you think.
I've noticed some gateways only support
horribly expensive and restrictive shopping
cart software packages and services.
AVS protection
Ensure the gateway at least offers AVS
protection. The Address Verification System (AVS)
AVS decreases the incidence of accepting
fraudulent transactions by verifying the
cardholder's billing address with the card
issuer. Using AVS on your transactions may
also benefit you by a reduction in fees
charged by your Merchant Bank.
Check to see what other types of transaction
protection are offered to you as a merchant.
These will probably be 'premium' services,
the charges added to the basic servicing
fees, but dependent on your products may be
absolutely necessary. If you are engaged in
the sale of anything that is youth or
technology oriented, it's probably a wise
move to pay for the extra service as
chargeback rates on fraudulent transactions
can cost you around US$30 per incident!
Internet merchant accounts and third party
credit card processors
Some type of Internet merchant account is
necessary in order to have a place to receive
funds from credit card sales. Internet
merchant accounts can be gained from most
major banks. A word of warning - your bank
will more than likely charge like a wounded
bull for such an account because of the risk
involved. You're probably better off
utilizing the services of companies such as
Durango Merchant Services or Merchant Express
who specialize in ecommerce and can tailor a
merchant account/payment gateway solution to
suit your needs.
Another option may be to use a third party
processing service such as Paypal or
2Checkout, which are both basically a payment
gateway and merchant account rolled into one
and operated by the same company.
Selecting an Internet merchant account
provider or third party processor
Shop around and then shop around some more -
this is a very confusing section of
ecommerce. If you make enquiries with a
company and they don't respond within 24
hours, or are somewhat vague in their
responses - run like hell away from them.
Banks are notorious for utilizing poorly
trained salespeople rather than those with
hands-on product knowledge or an
understanding the complexities of ecommerce.
Ensure they explain all charges to you
thoroughly by enquiring about the following
rates:
Statement - the charge each month for issuing
you statements on all transactions
Application fee - some institutions will
charge you for the privilege of applying for
an account, regardless of whether your
application is successful or not.
Setup fee - once your application has been
approved, there may be other fees associated
with establishing the account.
Discount Rate - a percentage deducted for
each product sold
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